Even more evidence of the boom

Nationally, its house price index was up 2.6% in the latest quarter, hard on the heels of 2.4% in the previous quarter.

Sales volume is also strong. "House sales volumes have now eclipsed the levels of the mid 90s property boom with sales volumes up across both the South and North Islands over the previous quarter," says Nikolai Shipkov of Quotable Value.

Nelson was the star performer with house prices up more than 10% in the latest quarter compared with 8% growth in the previous three months. Napier was its nearest rival with 4.5% growth this quarter after 3.6% last quarter.

Hamilton and Waitakere house prices were up 2.9% but the greater Auckland area was below the national average with 2.4% growth. Wellington prices rose a modest 1.9%.

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