Whanganui hot property as would-be buyers quit Auckland

Whanganui property in hot demand.

Whanganui house prices have risen sharply on the back of Auckland's previously red-hot market.

New figures show house prices in the country's biggest city have settled at an estimated median value of $1.04m.

QV's Andrea Rush said the cost of a home in main centres, like Auckland, has now priced many buyers out of the cities and they have looked to the regions as an alternative.

"Also given that properties are much more affordable in the regions, the LVR restrictions and bank lending restrictions do not impact as much in terms of a lower level of finance and deposit needed."

QV figures show Napier City was leading the pack among the North Island's regional areas - up $24,252 (5.7 per cent) to an estimated median of $449,717 in the three months to the end of July.

Whanganui was close on its heels, up $8814 (4 per cent) to in the same three month-period. Whangarei climbed 3.4 per cent to $494,212.

Across the year to the end of July many of the regions experienced percentage growth in the double-digits.