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Capital house prices surge in September

NZ Newswire logoNZ Newswire 4/10/2016 Tina Morrison
<span style="font-size:13px;">House values in the Wellington region accelerated at a 21 per cent annual pace in September, with the average price of a home now just under $620,000.</span> © iStock/Getty Images House values in the Wellington region accelerated at a 21 per cent annual pace in September, with the average price of a home now just under $620,000.

New Zealand residential property values increased at a slower pace in the year through September, as Auckland gained at a more subdued rate.

The average value of a New Zealand home rose 14 per cent to $619,660 in September from the year earlier, slowing from a 15 per cent annual rate in August, according to state-owned valuer, Quotable Value.

Growth in Auckland house values slowed to a 15 per cent annual pace in September, from 16 per cent in August, taking the average value in the region to $1.03 million.

The rate of growth in Auckland peaked at 24.4 per cent in November last year, and has since slowed following the introduction of tighter lending restrictions by the Reserve Bank.

"We have seen a stabilisation of prices in parts of Auckland since the new LVR rules, requiring a 40 per cent deposit from investors purchasing existing housing stock, were imposed," said QV spokesperson Andrea Rush.

Values in the Wellington region accelerated at a 21 per cent annual pace in September, ahead of August's 17 per cent pace. In Wellington city, the average value rose at a 21 per cent annual pace to $661,927.

In other urban centres, Hamilton values jumped 27 per cent to $529,236, Tauranga rose 28 per cent to $644,297, Dunedin lifted 12 per cent to $339,201, and Christchurch edged up 4.4 per cent to $495,723.

Values soared the most in the Queenstown Lakes District, up 31 per cent to $959,282.

"Many regional centres around the country also continue to experience strong value growth with Western Bay of Plenty, Rotorua, Kawerau, the Hauraki District, Whangarei, Napier, Hastings and Nelson markets some of the stand out regional performers," said QV's Rush.

"The only areas to see a decrease in values over the past year were the South Island West Coast districts of Buller, Grey and Westland and South Western suburbs of Christchurch."

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