Despite the Reserve Bank's best efforts to cool the property market, house values are still rising.
Quotable Value's monthly index rose at an annual rate of 11.1 per cent in May, up from 10.6 in April and 9.8 per cent in March. The average New Zealand sale price increased from $366,032 to $372,552.
QV spokesman Blue Hancock says the market is still strengthening, despite expectations property prices may level off. He says although immigration appears to be slowing, high levels of employment are driving the price increases.
Prices in the main regions showed strength with the capital rising 13.3 per cent. Christchurch was up 12.4 per cent on a year ago, Auckland rose 7.5 per cent, up from the 6.6 per cent growth marked in the April year.
Hamilton and Dunedin also reported higher growth rates at 11.8 per cent and 8.7 per cent respectively. The trends are also reflected in the provincial cities. Property values increased in Wanganui at 14.1 per cent, Nelson 12.3 per cent, New Plymouth 11.3 per cent and Tauranga 6.7 per cent.
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