The average value in the city is now $591,942. Western Bay of Plenty home values are also accelerating, up 8.4 per cent over the past three months alone and 23.6 per cent year on year. The average value in the district is now $525,133.

QV homevalue Tauranga Registered Valuer David Hume says the Tauranga and Western Bay of Plenty housing markets are continuing to show strong value growth.

'Auckland investors remain very active in the market as they search for more feasible rental returns in Tauranga and surrounding small towns such as Te Puke.

'Tauranga first home buyers are finding it increasingly difficult to compete with out of town buyers and even entry level houses in less sought after areas are now becoming increasingly unaffordable for them.”

He says a number of recent auction results show just how rapidly home values are rising and sales prices continue to exceed vendors' expectations.

'A three bedroom Mount Maunganui property sold for $840,000 setting a new benchmark for the area with similar properties that were previously selling in the early $700,000.

'In terms of bare sections, 850 square metres sections in the Conway Drive Development in Paengaroa that were selling for $120,000 twelve months ago are now being on-sold at $210,000.”

Meanwhile, QV National Spokesperson Andrea Rush says residential property values are rising rapidly across Auckland again and they also continue to accelerate in many other parts of the country, with much of the activity driven by strong demand from investors.

'Tauranga, Hamilton, Wellington, Dunedin and Queenstown values continue to see particularly strong very growth, as do many other regional centres and smaller towns located within commuting distance of these main centres.

'Tauranga, Hamilton, Wellington, Dunedin and Queenstown values continue to see particularly strong very growth, as do many other regional centres and smaller towns located within commuting distance of these main centres.

'The Christchurch market by comparison is slow and steady with normal levels of activity and sales volumes but little value growth as supply is now meeting demand for housing in the city,” says Andrea.

'Migration is continuing at the highest levels seen in 100 years and this population growth coupled with growing demand from investors, means housing supply, particularly in Auckland and Queenstown, is not able to keep up with demand and this is driving values ever higher.”

The latest QV stats show the average value in the Auckland region is $955,793 and that the housing market rose 15.4 per cent over the past year.

If values continue to rise at the same rate during 2016, then by this time next year the average value will top $1 million dollars. Many upper North Island centres within commuting distance to Auckland, Tauranga and Hamilton and Whangarei continue to see a strong upward trend in home values.

This includes places such as Rotorua where values rose 6.1 per cent over the past three months; as well as the Kaipara District up 9.3 per cent; the Whakatane District up 7.6 per cent and the Kawerau District up 11.4 per cent over the same period.

The only North Island areas that saw a decrease in values over the past three months were Masterton (down 0.1 per cent) and Carterton (down 1.3 per cent) in the Wairarapa.