The Auckland residential housing market has increased by 51.6 per cent since 2007.

House values nationwide have risen at the fastest annual rate in more than a year, driven by the Auckland market as it continues on its "meteoric" rise.



The latest monthly figures from property valuers QV show nationwide residential property values for May increase 9 per cent over the past year and 3.1 per cent in the past three months.

This brought the national average house price to $514,232, taking nationwide residential property values to 24.1 per cent above the previous market peak of late 2007.

The Auckland market has increased 16.1 per cent year on year in May, 5.4 per cent over the past three months and 51.6 per cent since 2007.

The average price in the Auckland area was $828, 502 in May.

QV national spokeswoman Andrea Rush said national residential property values have risen at their fastest annual rate since February last year.

"The Auckland market continues to drive this as it continues its meteoric rise with values in the super city region rising at the fastest annual rate since mid-2004."

There were value increases across all of New Zealand's main centres over the past three months, except in Wellington, which showed a slight decrease overall, she said.

"The usual winter downturn does not seem to have dampened demand as high net migration, relatively low interest rates and a constrained housing supply continue to fuel demand in the Auckland market," she said.

Home values in south Auckland posted the highest annual increase with values rising a massive 20.2 per cent year on year and 6.2 per cent over the past three months alone.

Figures also showed the Auckland effect was spreading to provincial areas nearer to Auckland, with values up in Tauranga, Hamilton, Cambridge, Pokeno and towns in the Hauraki District.

Home values in the Wellington region continue to be varied with some areas showing some steady increases while other areas remain flat or slightly down over the past three months.

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The average Wellington house price came to $457, 908, with the greatest increase seen in western Wellington.

It saw a rise of 1.8 per cent over the past three months and 2.6 per cent year on year, taking it to 3.5 per cent above the previous peak of 2007.

The annual rate of value increases in Christchurch is continuing to slow, showing the supply of repaired and newly built homes on the market is now starting to meet demand for homes, Rush said.

The average in Christchurch was shown to be $474,403.

Home values there increased 0.3 per cent over the past three months, 3.8 per cent year on year and they are now 25 per cent higher than in the previous peak of 2007.

Rush said there has yet to be any obvious impact on the market from the Reserve Bank's proposed changes to deposit requirements for Auckland investment properties or the Government's reclassification to investment property taxes due to take effect in on October 1.