More out-of-town buyers from Hamilton and Auckland had also been buying up in the city - both to live and to invest.
Looking forward, prices had to lift after being stagnant for so long, Mr Hereford said.
Nationwide, house values increased further in June to set a new average high of $441,254 - 6.2 per cent above the 2007 market peak.
The national average value has increased by 7.6 per cent over the past year, climbing 2.8 per cent over the past three months alone.
QV operations manager Kerry Stewart said although nationwide values continued to increase, they had only done so about half as quickly as they did in the years leading up to the 2007 market peak.
The strong increase in the national average was largely credited to the Auckland and Canterbury markets, as gains across the rest of the country remained subdued.
Auckland values had been increasing at a faster rate than prior to the previous peak, Mr Stewart said
"There is little sign that values will slow in Auckland in the immediate future. The number of properties for sale is continuing to drop while demand remains strong. Christchurch is also suffering from a shortage of stock leading to upward pressure on prices."
Outside of Auckland, most of the other main centres also recorded gains but at much slower rates.
Value increases would remain modest in areas with no shortage of properties.
Some provincial centres had seen increases in value, with previously slow or declining areas now picking up.
The trend was seen in areas such as Gisborne, where values increased by 2 per cent over the past three months, and in Whangarei, where values rose 2.5 per cent. APNZ
