Hamilton the new property hot spot

Hamilton property price rises are starting to gather speed.

Jonno Ingerson, director of research at property valuation firm CoreLogic says the property market is one of rising values in the regions and slowing activity in Auckland. And his focus is on Hamilton, where -- according to the company -- real estate prices have risen by 9 per cent over the past three months.

"Not only is that the fastest rate of increase in Hamilton since the monthly index series started in 2004, but when I look at the quarterly index that goes back to 1989, there is no time since then that Hamilton has risen as fast in three months," says Ingerson.

"And remember that the monthly index is based on the previous three months of sales. When I look at sales in the past month they are increasing at more like 6 per cent a month."

It isn't just Hamilton where the market is starting to warm up.

"Valuation activity and sales have picked up dramatically almost everywhere south of Auckland through the Waikato and Bay of Plenty, where we know there are Auckland-based buyers active," he says.

"Then in the South Island, Marlborough, Central Otago and Queenstown are busy too -- although it is not yet clear who the active buyers are."

He says the increased activity in the South Island has yet to translate into increasing values for sellers.

He says reasons for the slowdown in Auckland sales "and an increasing number of auctions not reaching reserve" is down to a lack of action from Chinese buyers.

"That could well be a direct result of the wobble in the Chinese stock markets about a month ago," he says.

CoreLogic has had fewer requests for property valuations.

"Valuation activity closely tracks subsequent purchases, so a slowdown in valuation activity should mean we are going to see a slowdown in sales," says Ingerson.

"People are now talking about an Auckland slow down. That could well be self-fulfilling. My pick is that Auckland value growth will slow a little in the coming months while other areas pick up through until December."

Despite evidence emerging of a new chapter in Auckland real estate, Ingerson says it doesn't mean Auckland prices are coming down.

"Our own analysis of the latest sales using a variety of different techniques is yet to show any conclusive sign of a slowdown in values," says Ingerson. "Watch this space."