The average asking price of homes for sale in New Zealand during February was $511,421 according to the latest monthly data – but the Western Bay of Plenty is still over five per cent behind 2007's market peak.

It marks the first time that sellers' expectations have pushed the asking price above the half-million dollar threshold.

While property prices rise in the Bay of Plenty, the market in Auckland continues to break records compared to the rest of the country.

The average asking price in Auckland continued to break records for the second consecutive month, reaching a new high of $764,424 - a 1.9 per cent increase on the $750,023 benchmark set in January.

And while Tauranga enjoyed a 4.8 per cent increase over the last 12 months, the figure is dwarfed in comparison to the likes of Auckland City South, which saw a staggering 16.1 per cent rise over the same period.

Speaking to interest.co.uk, QV National Spokesperson Andrea Rush says: 'The seemingly insatiable demand for Auckland property has resulted in the upward trend steepening on the QV Residential Price Movement Index.

'Values in Hamilton, Tauranga, Wellington, Christchurch and Dunedin are all showing moderate increases but nothing compared to the pace of Auckland values, which continue to surge ahead.”

The new national high in average asking price of $511,421 represents an increase of 2.6% on the previous record set in January of $498,471.

Spokesperson and board director of Realestate.co.nz, Bryan Thomson, says: 'Key regions in New Zealand, such as Canterbury and Auckland, continue to show robust growth in average asking price, as well as a healthy number of new listings.”

The number of new listings of homes for sale across New Zealand in February was 12,008, an increase of 26 per cent over January, and marginally below the number in February last year of 12,167.

'The long-term national average is 36 weeks of stock,” adds Bryan, 'which indicates that in some parts of the country with low inventory levels, such as Central Otago, Canterbury, Wellington, and Auckland, the property markets continue to favour sellers.

'These regions are driving the national average downwards, however there are other regions which are finely balanced, while others favour buyers, such as Manawatu, Taranaki, Gisborne, Southland and West Coast.”