"House prices in the Super City continue to rise at eye-watering rates. We are seeing examples of well-presented, but not high end properties selling for much more than their original purchase price within a short space of time. While these have often been upgraded in the intervening period, the rise in sale price far exceeds the money spent. One North Shore townhouse that sold in the $700,000s three months ago was renovated to a good standard internally and was under agreement in the $900,000s three months later.
"Conditions are also favourable for investors and in South Auckland there have been examples of investors buying multiple properties, adding fuel to the investor rule debate for investors with five or more properties that the Reserve Bank is currently looking at," Wiggins said.
Andrea Rush said residential property values in the other mains centres including Hamilton, Tauranga, Wellington, Christchurch and Dunedin were only showing moderate increases.
But Auckland City East - which includes Remuera, Orakei, Kohimaramara, Mission Bay and St Heliers - saw values increase 4.9 per cent since August, 10.2 per cent year on year and values there are now 40.7 per cent higher than the previous peak of 2007.
Auckland City South - includes Mt Wellington, Onehunga, Penrose, Otahuhu and Oranga - is up 4.7 per cent since August, 10.5 per cent year on year and 49.1 per cent since 2007.
Auckland City - in the old Auckland City Council boundaries - values rose 4.1 per cent over the past three months, 9.2 per cent year on year and 43.3 per cent since 2007.
Manukau northwest was up the most over the past three months increasing 5.2 per cent since August and 13.8 per cent year on year. Values there are now 41.4 per cent higher than in 2007.
Franklin district is also up 2.8 per cent over the past three months and 11.1 per cent since this time last year. Values there are now 21.4 per cent higher than the previous peak of 2007.
North Shore Onewa saw the biggest value jump, up 5 per cent over the past three months, 8.7% year on year and values there are now 43.6% higher than in 2007.
Nationally, residential property values rose 5.1 per cent annually to November and 0.7 per cent over the past three months. This means they are now 16.7 per cent above the previous market peak of late 2007. When adjusted for inflation the nationwide annual increase drops slightly to 4 per cent and values remain 0.4 per cent below the 2007 peak, QV said.
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