First-home buyers driven to Whangarei and Hamilton

Papakura's steady growth in property values outshines other Auckland urban areas in the latest QV survey for the year to September.

The growth was 15.7 per cent, followed by Manukau (13.3 per cent), Waitakere (12.7 per cent) and the North Shore (12.3 per cent.)

Although Auckland City values increased by only 5.8 per cent, this was up from 4.4 per cent growth reported in August.

Nationally, the QV survey showed a rise of 14.9 per cent in growth over the year to September, compared with 14.7 per cent to August.

"Despite predictions that growth in the residential market may be about to level out, values continue to edge upwards across most main centres and regional areas," said QV spokeswoman Glenda Whitehead.

Property values in Auckland City rose by 5.8 per cent annually to September, up from 4.4 per cent annual growth to August.

Properties in the southern areas of Auckland City had the highest growth in value of 8 per cent and a $414,825 average sale price.

This was driven by the availability of comparatively affordable homes, said QV.

A good level of activity across all price ranges was apparent, with values growing at similar rates across eastern parts of the city (4.6 per cent) Waiheke Island (4.5 per cent) and central Auckland City (4.4 per cent.).

Rodney District annual growth to September was 12 per cent, which is 0.7 per cent down on August, but Franklin District improved from 20.7 per cent to 23.5 per cent.

Hamilton and Whangarei showed gains of 27.6 per cent and 33.1 per cent respectively.

Hamilton Mayor Michael Redman and Whangarei Mayor Pamela Peters attributed this to higher house prices in Auckland forcing people to look to the provinces for first-home and investment opportunities.

There they could find homes in the $250,000 to $260,000 range.

At the other end of the market, prices for Auckland waterfront homes are also lifting, said Deborah Kelland, of Kellands Real Estate.

"We have analysed the sales history of 144 of Takapuna and Milford's most expensive homes and these owners have had an average of 10 per cent a year compounded long-term growth - and fantastic tax-free gains," she said.

Substantial demand for waterfront property in Takapuna and Milford was raising prices in Belmont and the bays of the North Shore.

Clients in the Hurstmere luxury apartment development on Lake Pupuke had achieved 30-60 per cent growth in values in two years.

Ms Kelland also said her firm's studies showed that the market for large and heritage apartments in Auckland central business district was holding up.

Inner-city heritage apartments resold within a year of purchase showed gains of 13 to 25 per cent.

The capital gains being achieved cut across negative comments about imminent collapse of an oversupplied apartment market.

Rentals for one apartment building, the Ascent in Nelson St, were 15 per cent greater than the assessment when the apartments were sold "off the plans" two years ago.

"We are currently reselling those apartments showing a 7.6 to 52 per cent gain to the original buyers."

Ms Kelland said prices and rents for poor quality "little boxes" would slump, but upmarket apartments fetched excellent prices because people wanted the CBD lifestyle.