Auckland house prices are still rising fast, as the Reserve Bank's loan-to-value ratio moves are about to be introduced next month.
Jonno Ingerson, research director at qv.co.nz, said the new LVR rules were being ushered in to slow down rapid growth in property values but areas like Auckland and Canterbury were suffering a housing shortage and continued to see big value rises, despite the imminent changes.
The LVR moves would limit the number of first-home buyers and investors who would usually require loans of more than 80 per cent of the property's value, he said.
"However, the rapid increase in values, in Auckland and Canterbury in particular, is also due to a lack of supply rather than just high demand from potential buyers. So while the LVR limits may have some dampening effect on values, we should still expect them to increase for some time yet," Mr Ingerson said.
Bruce Wiggans, a QV valuer, said Auckland house values had risen fast in the last year and were increasing strongly inside former Auckland City Council boundaries, in the Waitakere area, on the North Shore and in Manukau, all up 3.3 per cent to 3.6 per cent over the past three months.
Values in the North Shore's Onewa area rose 5.1 per cent during the past three months and 5 per cent in the eastern area of the former Auckland City Council boundaries.
"Overall, values across Auckland are 13.1 per cent above last year, with Waitakere and North Shore seeing the highest annual increases, both above 14 per cent. Auckland City is close behind at 13.8 per cent. Again, some areas such as North Shore Onewa and Auckland City South are leading the way, sitting above 15 per cent," he said.
Values were rising fast in suburbs close to the CBD and out west, he said, citing Blockhouse Bay. "There also appears to be good demand from baby boomers, especially for quality apartments in the city. We are, however, seeing some negative sentiment surrounding leasehold properties, with buyers prepared to walk away in some instances in light of large ground rental increases."
In a commentary on hot spots, QV said values in Herne Bay, St Marys Bay, Parnell, Mission Bay, Kohimarama, Remuera, Greenlane, Ellerslie, Devonport and Stanley Pt increased less than 10 per cent in the past year.
"Many of these inner suburbs increased strongly a year ago and have since slowed as buyers backed away from the high property values and the subsequent loans needed to purchase them," QV noted.
"Some of the other central suburbs such as Ponsonby, St Heliers, Epsom, Mt Eden slowed a few months ago but have started increasing again ... As buyers began to look a little further out of town, those areas began to see the highest level of growth.
"We can see a wider ring of suburbs that have grown 11 per cent to 20 per cent ... as far north as Milford ... and then around Panmure and Glendowie," QV noted.