Eastern suburbs soaring

The LVR rules were being felt most acutely in the cheaper end of the market, it said, and pricier spots such as the eastern suburbs were largely unaffected.

Bayleys said the average price across all the eastern suburbs was nearing $1 million.

Suburbs such as Ellerslie, Epsom, Greelane and Meadowbank - on the fringes of the most desirable suburbs -  had reported particularly big price increases, of 30% or more over the two years to the end of 2013.

Bayleys said sales in the area were still turning  over at a rate of 600 per quarter.

“This level of activity isn’t expected to subside over the course of the year as the desire of purchaers to invest in the area remains strong.”

Newmarket’s average sale price had risen to almost $700,000 and the new suburb of Stonefields reported an average sale price of $863,000 in 2013. St Heliers’ average had reached $1.2 million, Bayleys said.