New Zealand property values increased at slowest annual pace in nine months in May as interest rates increased and loan to value restrictions weighed on the entry point of the market.

House values rose at an 8.2 per cent annual pace in May, the slowest annual pace since an 8.1 per cent increase in August, according to state agency Quotable Value. Residential values rose 0.7 per cent over the three months ended May 31. The Reserve Bank hiked interest rates for…