Aucklanders getting more bang for their buck in Tauranga's property market has helped the city's residential values rise.

Quotable Value's latest quarterly figures show Tauranga's property values have slightly increased by 1.6 per cent since April and 5.6 per cent in the last 12 months.

Nationally property values for July have increased 7.6 per cent during the last year and 2.3 per cent since April.

The values now sit 15.6 per cent above the previous market peak of late-2007.

QV registered valuer Mairi Macdonald says while sales volumes in Tauranga are decreasing, values in the city are still increasing – with the current average residential property value at $454,570.

She says fewer lower-value Tauranga homes are selling due to LVR restrictions but the higher-value end of the market is seeing demand from Aucklanders.

'We are seeing more demand for higher value properties – typically over $500,000 – due to out-of-town buyers and there is some evidence of investors looking for higher value properties.”

QV statistics show Auckland's residential property values jumped 11.7 per cent in the last year, and values are up 31.8 per cent since the 2007 peak.

'There's a little bit of people moving down from Auckland, because they can buy a much better house in Tauranga for a lot less,” says Mairi.

'They sell a $1 million house in Auckland and buy a $600,000 house in Tauranga that's twice the size and twice as nice – so there's a bit of that happening, especially in Bethlehem.”

'There's also been an increase in sales in Bellevue and Otumoetai areas – there's a bit movement in there – and Papamoa is doing well too,” says Mairi.

But she says the Reserve Bank-imposed LVR restrictions are still biting at first-home and low-value property buyers – seeing them take longer to enter the property market.

'Fewer lower-value homes are selling due to the restrictions and properties are also taking longer to sell, especially those under $350,000.

'So there's been a bit of a decrease in sales volumes, but not so much sales values, but volumes do flow through into the whole turnover of properties.”

Mairi says Western Bay's 0.6 per cent dip in property values since April is relevant to Te Puke and Katikati areas only.

The region has still seen a 3.2 per cent increase during the last year – and the current average residential property value is $410,366.

'There still some movement in Te Puna and Omokoroa and what we class as lifestyle properties on the fringe of Tauranga.”

QV national spokesperson Andrea Rush says she's starting to see a slowdown in the rate of value increases in most main centres, following a slowdown in sales volumes during the last few months.

'The Auckland region, as a whole, has seen values rise over the past three months but some areas of the super city are now showing a slight decline in values.

'Residential property values in Christchurch are still rising across the city, while Hamilton values are down slightly and Wellington values are now showing a downward trend.”

'Sales volumes are between 15-25 per cent lower than they were this time in 2012 and 2013 in most places around the country.”

Andrea says the slowdown is most likely due to LVR speed limits and interest rate rises and the annual winter seasonal downturn.

'However the reserve bank has now said it will take a break in rate rises for the moment and banks are advertising that they will negotiate on lending to those with deposits of less than 20 per cent.”