Auckland property values continue to surge ahead, up 15.2 per cent in the last year.

QV has just released its latest monthly property value index.

That showed national residential values last month up 9.2 per cent over the past year, and 2.5 per cent over the past three months.

This means they are now 11 per cent above the previous market peak of late 2007, QV said.

Adjusted for inflation, the national annual increase dropped slightly to 7.7 per cent and values remain below the 2007 peak by 4.3 per cent.

"The Auckland market has increased 15.2 per cent year on year and values are 25.4 per cent above the previous peak. When adjusted for inflation values are up 13.7 per cent over the past year and are 8.1 per cent above the 2007 peak," QV said.

The Reserve Bank, which is expected to keep interest rates on hold at a record low 2.5 per cent this Thursday, has signalled rates are set to rise next year and further increases are likely should lending limits fail to stem rapidly rising house prices. Population expansion in Auckland is outpacing housing supply while Christchurch is being rebuilt following a series of earthquakes.

In other major centres, house values in the Wellington area rose at a 3 per cent annual pace while Hamilton increased 5.5 percent and Tauranga advanced 3.5 per cent.
Most provincial centres are still experiencing growth although it is limited in some areas, QV said.

Gisborne is leading the provinces in the North Island with an annual increase of 2.9 per cent while in the South Island, Southland prices rose at an annual 4.4 per cent pace and in Gore prices accelerated 3.9 per cent.

with BusinessDesk