Queenstown Lakes’ average house prices have hit a new high, surpassing $1.5M.

The Quotable Value (QV) House Price Index shows prices in the district jumped by 9.4 per cent over the three-month period to the end of September and the average house price reached $1,517,690.

QV general manager David Nagel said Queenstown Lakes properties had gained the most value around the country and the second-highest value gain was in Christchurch with growth of 7.7 per cent.

David said Queenstown Lakes prices were zigzagging: They all but levelled out in June, experienced a 3.5 per cent rise a month later, dropped slightly in August, and then climbed sharply in September.

However, the 12-month trajectory showed a strong upward trend, with Queenstown Lakes average house prices increasing 25.3 per cent since September 2020.

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Around the country ongoing lockdowns were continuing to affect the number of fresh listings, which may have contributed to the strong value growth “with buyers continuing to vie for limited stock,” David said.

But anecdotal evidence suggested appraisal enquiries were on the rise in many locations, he said, and “a flood of new listings will provide some welcome relief for house hunters,” David said. 

There are other positive signs for buyers around the country, he said.

“With the recent OCR announcement and flow-on increases in mortgage rates, combined with tightening credit limits and interest deductibility changes kicking in from October, we could see a gradual swing in the power balance between buyers and sellers over the coming months.”

However, he warned it was “difficult to foresee anything more than a gradual slowing in the rate of value growth in the foreseeable future".

In Invercargill and Dunedin, average house prices increased by 3.7 per cent and 2.7 per cent respectively over the three-month period. 

The QV House Price Index measures house price movement throughout New Zealand, providing an indicator of capital growth and how prices are trending.

PHOTO: Wānaka App