Property values in Tauranga remain flat despite a nationwide increase according to the latest figures released by QV.

The latest monthly property value index shows the nationwide residential values increased in most urban areas with values up 1.5 per cent in the last three months and a total of 6.2 per cent in the last year.

Empty shops in Tauranga CBD is a sign of 'tough times”.

QV Research Director Jonno Ingerson says it has been a relatively strong start to the year for the property market, carrying on from the increased activity we saw in late 2012.

'There has been plenty of buyer enquiry and sales activity throughout January at a time when people are usually still in holiday mode.”

However, property values in Tauranga, which increased throughout the middle of 2012, have dropped back.

The last couple of months have been static leaving values 1.0 per cent down on last year.

QV Valuer Paul Thomason says the Tauranga market remains flat as house prices either remain the same or decrease slightly.

'Although there are some subdivisions currently being undertaken, as well as a dramatic increase in retirement living, there doesn't seem to be any new jobs or people moving to Tauranga.

'Several empty shops in the CBD are also a sign of tougher times.”

In Tauranga the average current value of a home is $423,858, while in the Western Bay of Plenty it is $ 398,497, according to QV statistics.

Meanwhile, Jono says values in other suburban centres are increasing with values no longer solely driven by Auckland and Canterbury.

'In the last month or two values have also begun rising again in most of the other main cities and provincial centres.

'While the rate of value increase is not as fast as Auckland and Canterbury it does signal an increase in confidence across most of the country,” says Jono.

'The lack of properties for sale will continue to constrain sales volumes. The number of new listings coming onto the market has been fairly stable since 2009 and well below the levels seen at the peak of the market.”

Jono says as sales volumes pick up the number of properties currently for sale has also dropped to very low levels.

'This leads to reduced buyer choice, and means that well-presented properties tend to sell quickly. The overall result is upward pressure on prices.”