Wider Auckland’s value was up 7.2% on a year ago to $1,045,059 and Queenstown’s was up 19.2% at $1,071,995, but at least eight areas within wider Auckland maintained higher values than Queenstown.
Quotable Value’s national spokeswoman Andrea Rush said the national house price index showed residential property values for June had increased 8.1% during the past year, but that was the slowest annual rate since March 2015.
"The average value in Queenstown Lakes district has now topped the average value for the Auckland region, which is a milestone for the area," she said.
Queenstown Lakes continued to appeal to overseas buyers from around the globe and given record high tourism, awareness of the area was growing.
Some people were purchasing "bolt-holes" in the region, Ms Rush said.
Cash buyers not affected by the Reserve Bank’s loan to value ratio (LVR) restrictions or tougher lending criteria remain active in the Queenstown market.
"The high end of the bracket is currently very strong and this is pushing the average value in the region up," Ms Rush said.
There had been record sales, such as the recent $12 million dollar sale of a Kelvin Heights property and another $6.5 million dollar sale, although values in the middle and lower end of the market were not rising as strongly as the top end, Ms Rush said.
QV’s Dunedin valuer Aidan Young said Dunedin home values were continuing their upward trend of the past 18 months, gaining 14.6% on a year ago.
He said the market was seemingly unaffected by the Reserve Bank’s LVR restrictions, or the stricter lending criteria affecting sales volumes in other parts of the country.
"Demand remains strong in the Dunedin market and there’s currently a shortage of properties listed for sale, which is typical for the winter months," he said.
Multi-offer scenarios were still common for properties in desirable locations and first home buyers remained active in the market, Mr Young said.
Ms Rush said Auckland values continued to "hold steady", and the average value across the region remained at just over $1 million.
However, she noted Auckland sales volumes had "plummeted" to 30% lower than where they were a year ago.
"High prices coupled with banks’ stricter lending criteria, are making it increasingly difficult for anyone but cash buyers or those with higher levels of equity to buy property," Ms Rush said.
She said buyers were looking to the regions in search of more affordable homes and values in centres such as the Kaipara district north of Auckland, Hawke’s Bay, Nelson and the Tasman district were now experiencing stronger value growth than the main centres.
