Main centres drive rise in property prices 

Source: ONE NewsHousing in Auckland

Property values have risen 4.1% off their low in April 2009 but are still 5.9% below the market peak in late 2007, according to QV Valuation.

Property values in November were 1% above last year and 0.2% above last month.

The increase in nationwide values has been driven by the main urban areas, which have risen 4.7% since the market low in April 2009.

Provincial centres have risen 2% and rural residential areas only 0.4% on the same comparison.

Auckland region values are now 3.1% above last year, the Wellington area is up 2.9%, Christchurch up 2.8%, and Dunedin up 4.1%.

Values are above last year in Napier (0.2%), New Plymouth (6.6%), Palmerston North (2.3%), Nelson (1.1%) and Invercargill (0.4%).

But some areas are still below last year with Gisborne at minus 4.8%, Hastings minus 0.4%, Wanganui minus 2.2% and Queenstown Lakes at minus 6.1%.

The average sale price across New Zealand increased to $393,373 in November from $389,198 in October.

QV Valuation manager Glenda Whitehead says while turnover activity - measured by number of days taken to sell a property - is improving in the main centres, total activity levels continue to be low due to a shortage of listings.

"There are signs in recent weeks that there are more properties coming on to the market, especially in the main centres. This increase in supply will help to ease some of the upward pressure on prices presently caused by motivated buyers competing vigorously for the few available properties," she says.

QV Valuation expected increased activity and a balanced market conditions in January and February.