Otago house prices continue to surge ahead and the separate Central Otago Lakes region again recorded the largest year-on-year gain of median prices, up 41% to $650,000.
With no tangible signs of investors easing back on buying, rising prices and low inventory, the Reserve Bank could yet bring in more restrictions, which were threatened in May.
Within the Central Otago region, Queenstown's median price was up 43.9% to $796,000 for August and its Central component rose 24.3% to $530,000, data from the Real Estate Institute of New Zealand showed yesterday.
Across the country, median prices on a year ago rose 5.8% to $492,000, while Auckland was up 13.9%, to $842,500.
ASB economist Kim Mundy said lack of inventory across the country continued to be the dominant theme.
''For four months now, the median number of days to sell a house in New Zealand has been 30 ... the lowest median days since June 2007,'' Ms Mundy said.
Across the separate Otago area houses rose by $12,494, or 5% compared with August last year. Prices in North Otago rose 29%, to $250,000, were up 14% in South Otago, to $172,500 and up 8% in Dunedin, to $325,000.
REINZ commentator for Dunedin, Liz Nidd, said investors had ''stepped away from the market a bit'', as they consider the Reserve Bank's new requirement of a minimum 40% deposit, while there was continuing demand from first-home buyers.
''The very low number of days to sell for August indicates the market continues to be very tight, with just over 10 weeks of supply,'' Mrs Nidd said.
Ms Mundy said sales activity had ''picked up a gear'' in August, suggesting demand remained healthy, despite the impending Reserve Bank investor restrictions requiring a minimum 40% deposit, which banks were already adhering to.
However, while inventory remained extremely low, the new restrictions due to be implemented on October 1 could see activity start to slow, in the coming months, she said.
Mrs Nidd said around Otago the number of properties for sale remained ''very tight'', with just over 10 weeks of supply available, if no more houses were put on the market.
She said sales volumes across the region rose 15% compared to August 2015, with sales rising 175% in South Otago, 23% in North Otago and flat in Dunedin.
Westpac acting chief economist Michael Gordon said August was the first complete month of housing data since the Reserve Bank's tightening of the loan-to-value ratio restrictions.
They were announced on July 19 and enforced by banks almost immediately.
''However, the Reserve Bank had strongly hinted at further restrictions in its May financial stability report,'' Mr Gordon said.
''It's likely some of the strength in house prices in recent months was due to buyers getting in ahead of new regulations,'' he said.
