Real estate sales volumes and property values are both increasing in Dunedin as the year draws to a close, with the residential market "starting to pick up traction".
The average sale price for Dunedin in November was $263,356, Quotable Value New Zealand figures show.
Registered valuer Tim Gibson said there was a noticeable increase in demand for cheaper properties in the Dunedin city and Dunedin south areas.
That was despite Quotable Value's residential price index for November showing property values in Dunedin were 0.2% lower than the corresponding time last year.
Mr Gibson yesterday said signs were more positive in the past couple of months.
He said 2011 had been "volatile" with a big drop in values early in the year.
Nationally, the figures showed property values had continued to increase gradually, with values 1.7% higher than the corresponding time last year and 4% below the previous market peak of late 2007.
"The Dunedin residential property market is starting to pick up traction," Mr Gibson said.
"Sales volumes and property values are both increasing.
"There had been a noticeable increase in demand for lower-priced properties in the Dunedin city and Dunedin south areas."
The southern area extends from Waverley to Green Island, and includes St Clair and St Kilda.
At the top end of the market, there appeared to be some hesitancy, with only twelve recorded sales in the past three months with a price above $600,000.
"With good attendances being reported at recently held open homes, it indicates that positive sales activity may be sustained as we head into the New Year," Mr Gibson said.
