Property gold rush hits Dunedin

A car dealer has paid more than $2 million for a Taieri homestead, doubling greater Dunedin's highest house price.

Andrew Simms, 40, said he was prepared to spend the money to move back to Dunedin next year from his Christchurch base.

"It is positive for Dunedin that purchasers are prepared to pay those prices in order to come back here to live," Mr Simms said.

He was attracted to the 91-year-old Islington homestead in East Taieri because of its extensive grounds.

Up to five houses have sold around Dunedin for about $1 million during the past four years.