Western Bay house prices continue to climb - QV

Western Bay of Plenty houses prices have increased 7.3 per cent in the year to January, despite a 1.7 per cent drop in value in the past three months.

The latest monthly QV House Price Index show property values in the Western Bay rose from an average value of $575,089 in January 2017 to $617,120 in January 2018.

Tauranga home values increased 3.9 per cent year on year or $26,123 from an average value of $672,752 in January 2017 to $698,875 in January 2018.

QV Tauranga property consultant David Hume said strong migration continued to drive growth despite less activity from Auckland investors as their local market stabilised.

"Western Bay of Plenty continues to see good growth over and above the Tauranga area, partly due to the strong recovery of the Kiwifruit industry in Te Puke over the past five years," Hume said.

The latest monthly figures showed nationwide residential property values for January increased 6.4 per cent over the past year and values rose by 3.8 per cent over the past three months. The nationwide average value was now $671,531.