New Zealand house prices continue their upward spiral and the Government's new tax and bank lending restrictions have yet to make an impression, the most recent housing data indicates.
For October, Auckland median prices have pushed through $900,000 to $918,153, or 68% higher than the last peak in 2007, according to government agency Quotable Value.
Analysts, though, are predicting an easing in the heated market, which in turn will detract from gross domestic product (GDP) growth.
Dunedin median values have pushed through $300,000 to $302,329, up 5.6% on 2007. Second only to Auckland in pricing is Queenstown, up 9.2% since 2007 at $750,000.
Separate data showed Otago had for the second time this year broached $300,000 in average asking prices. June's record level was bettered by $12,300, to $321,188, in October, while the national asking price declined from the August record high of $568,215 to $539,823, according to the Real Estate Institute's realestate.co.nz
Auckland's continued underpinning of national prices has shifted the national QV figure to $552,345, or 13% above 2007.
The effect of capital gains tax rule changes and Auckland lending restrictions are expected to take several months to flow into real estate data.
Westpac chief economist Dominick Stephens said several headwinds, such as the dairy payout and El Nino drought, would result in an extended period of below-trend growth, and weigh heavily on gross domestic product (GDP) growth.
However, the economy was ''still only looking at a slowdown in economic activity, not a collapse,'' he said.
He said a slowing in Auckland house price inflation was also expected to weigh on GDP growth.
Countering that was the Government having strengthened the rules in capital gains taxation on investment property, now to be taxed if owned for less than two years, and the Reserve Bank having tightened the restrictions on investment lending in Auckland, now requiring a 30% deposit.
QV national spokeswoman Andrea Rush said while there was anecdotal evidence that the market ''may have cooled somewhat'' in anticipation of the regulatory measures, there is still no sign this is having any impact on rising values in the ''super city'' region.
Six areas within Auckland were in a $1million to $1.34million band of medians, the only ones in the country over $1million.
Mr Stephens said combined with rising unemployment, regulatory developments would ''challenge investor confidence.''
''On balance, we are forecasting national house price inflation to fall from rates of around 15% currently, to around 6% in 2016,'' Mr Stephens said.
He said while there had been some improvement in economic conditions in recent months, the economy was ''not out of the woods yet''.
A slowdown in GDP growth was ''still on the cards'' for 2016, he said.
Drought would affect sheep and beef farmers and pipfruit growers and the resulting reduced earnings would flow through to decreased activity in other sectors of the economy.
Ms Rush said in the South Island, the MacKenzie District showed the greatest value increases, up 17.2% year on year, albeit much of it last summer.
Queenstown Lakes District values were up 8.4% on a year ago and the average value there, now more than $750,000, is second only to the Auckland region.
QV valuer in Dunedin, Duncan Jack, said Dunedin residential property values continued to rise steadily, up 1.1% over the past three months and 4.2% year on year.
''Recent trends indicate that overall growth is positive across the city, with value levels generally increasing at a slow and steady pace,'' Mr Jack said.
