New Zealand’s property values rose 5 per 100,000 in November, according to a survey released today.
Property values increased by 6.7 per cent in the 12 months to the end of November, the Reserve Bank of New Zealand said.
The median house price in November was $1.24 million.
The median price for detached homes rose 5.1 per cent to $838,000.
The median price of a house rose 2.7 to $1,813,000, the survey found.
It is a positive sign for a country still reeling from the aftermath of a severe property downturn that started last year, and is now in its third year.
“The gains in the first half of the year were largely driven by an improvement in housing affordability, as well as a rise in house values, reflecting the strengthening of the local economy,” the Reserve Board said in a statement.
“Overall, the country’s property market remains resilient and resilient housing is a key driver of the economy.”
New Zealand’s real estate market has been hit by a series of large price rises.
In November, home prices jumped by 8.1 percent in Auckland, 10.1 in Christchurch and 7.9 in Christiaan Stokes, the biggest increases in three months.
The average price for homes in Auckland rose 2,834 per cent year-on-year to $4,722, while Christiaans Stokes jumped 3,664 per cent from $1 to $3,721.
In Christiaens, prices rose 567 per cent on average to $739,000 for a median house in the capital.
Reserve Bank of Australia governor Mark Carney warned in October that the Auckland market was in “shock”, but was now showing signs of recovery.
Auckland’s property boom has been fuelled by strong foreign buyers and overseas investments, and has also seen more foreign money coming in from mainland Europe.
Last year, foreign investors bought up about 10 per cent of the city’s land value, and have since been investing more in the city.
While there has been a slight decrease in foreign buyers buying homes, the number of foreign buyers is expected to rise.
The Reserve Bank is now forecasting Auckland will see a “substantial rebound” in house prices by 2019, and a “significant correction” in 2020.
The Bank has warned the country faces a housing affordability crisis, as it tries to curb the price rises and supply outflow from the housing market.