Increases in house prices in the Bay of Plenty are dropping off, according to the latest monthly QV Residential Price Movement Index.

QV National spokesperson Andrea Rush says home values in Auckland, Christchurch and Tauranga are still increasing, but at a slower rate than this time last year.

Photo: file.

'Since September last year the growth rate of New Zealand residential property values has been slowing and this trend has continued over the past month.”

'Hamilton and Dunedin home values have decreased slightly and Wellington values are continuing to show the downward trend seen over the past few months.

'Sales volumes and home loan approvals are down year-on-year, and interest rate rises, LVR restrictions and the upcoming election appear to be keeping the number of homes on the market low as well.”

In Tauranga City residential property values have increased by 0.8 per cent during the last three months and 5.1 per cent year-on-year, says QV registered valuer Mairi Macdonald.

Values in the Western Bay of Plenty have decreased by 1.4 per cent during the last three months and but remain 3.0 per cent higher than in August 2013.

'The Tauranga market is still steady with good demand for property, although sales volumes are down and there is slightly less activity in the entry level end of the market,” says Mairi.

'Suburbs like Bethlehem, Otumoetai and Pyes Pa are still selling well, although sales volumes in Mount Maunganui and Papamoa have decreased.

'We are seeing good demand from Aucklanders relocating to Tauranga at present because it's more affordable.

'New builds are popular due to the need for only 10 per cent deposit, instead of 20 per cent for an existing home; and new developments in Papamoa and Pyes Pa are still in demand.”

In the Western Bay of Plenty, Omokoroa remains popular and the kiwifruit orchards have recovered to pre-Psa-V value levels.

Those with the gold variety in particular are commanding premium prices, says Mairi.

Nationwide residential property values for August have increased 6.9 per cent during the last year and 1.7 per cent during the last three months.

This means they are now 15.8 per cent above the previous market peak of late-2007. When adjusted for inflation, the nationwide annual increase drops slightly to 5.2 per cent and values remain below the 2007 peak by 0.8 per cent.