The average Auckland house price is heading for $1 million by this time next year based on current trends.
Quotable Value figures yesterday showed the value of the average New Zealand property rose 3.9 per cent in the past three months to $577,829.
The average value of an Auckland property rose to $955,793 in the past quarter, although the increase was slower than the rest of the country at 3.3 per cent.
There was a 7.1 per cent fall in the number of properties coming on to the market in May, with the long-term average of new listings also down.
Prime Minister John Key said there would always be a range of prices.
"If you go on Trade Me this afternoon and google property $500,000 or less in Auckland, you will find there are quite a few," he said. "We are doing our best to get on top of the rise of average house prices, and house prices generally.
"I don't think any one particular thing - from a national policy statement to a bright line test of itself - will be the silver bullet, but I think, overall, the combination of them will."
Building and Housing Minister Nick Smith said the problem was a lack of land supply and today's national policy statement - designed to make Auckland Council open up more land - would help.
"We need to get house price increases back into single digits."
During question time, Dr Smith pointed to recent building consent figures. That led to a retort from New Zealand First leader Winston Peters.
"In the whole history of humanity, in this country or the whole wide world, has he ever seen someone living in a consent," Mr Peters asked to laughter.
The Government is putting out a national policy statement today which is likely to require some councils to relax restrictions on development.
The statement will include specific thresholds for growth which will trigger a requirement to allocate more land for residential development.
According to the International Monetary Fund's (IMF) 2015 survey, Qatar is the only country in the world which saw house prices rise faster than those in New Zealand.
QV spokeswoman Andrea Rush said if Auckland property values continue to rise at the same rate, this time next year the average value would top $1 million.
Hamilton values rose 4.9 per cent over three months to an average $478,323 - up 26.2 per cent year-on-year.
In Tauranga, the average value of $591,942 was up by 4.9 per cent over last quarter and 23.1 per cent across the year.
The average property value in the Wellington region ($504,794) rose 4 per cent over the past three months and 10.2 per cent year-on-year.
The rate of increase was slower in Christchurch at 1.1 per cent during the last three months and 3.3 per cent year-on-year to $490,137.