Sky's the limit for NZ property price speculation

71 per cent of Aucklanders believe house prices will continue to rise. Photo / Brett Phibbs

Despite constantly forging new records, the majority of respondents in a new property report believe prices will continue to increase.

ASB's Housing Confidence report, out today, shows a net 65 per cent of respondents expect house prices will increase over the next 12 months.

The result is the highest reading since the survey began in 1996 and is despite Auckland's median house price rising a record 26 per cent to $755,000 last month.

Unsurprisingly, sentiment was worst in Auckland, where 71 per cent of respondents said they thought house prices would continue to increase, up from 63 per cent last quarter.

The report also showed that 27 per cent of Aucklanders believed now was a bad time to buy a house - a record low.

Respondents were likely pre-empting the added difficulty in buying houses when the Government's new housing measures come into effect on October 1, the report stated.

Auckland house price growth was expected to continue, the report stated. However, we were likely to see some future slowing based on a gradual ease in migration, a further lift in building in Auckland and investment restrictions slightly offsetting the impacts of lower interest rates, according to the report.

"But, it is hard to see any supply glut occurring in the market any time soon."

It also showed that more people were expecting interest rates to fall (a net 3 per cent). The figures was sharply down from a net 11 per cent expecting higher rates last quarter, and a net 70 per cent expecting increases just over a year ago.

See the full report here: