Tauranga is seeing renewed confidence in residential property values compared to previous months where growth has been limited.

The latest QVmonthly property value index shows a nationwide trend of residential values increasing further in April.

'There is a growing feeling of confidence in Tauranga following a strong month of sales and plenty of interested buyers,” says Tauranga QV valuer Paul Thomas.

Tauranga has grown 1.2 per cent during the last three months – up 0.8 per cent on the same time last year.

'We've broken away from 1 per cent mark which we've been tracking either side of in previous months – we're still a long way off our peak and there are no signs that will change overnight but there is more confidence out there,” says Paul.

Nationally values are up 4 per cent, above the previous market peak of late 2007, with a 1.3 per cent increase during the last three months and a 7.1 per cent increase during the last year.

Paul says there are some indications that Aucklanders are moving down to Tauranga to work, something that has been notably absent for the last few years.

'This may help the market lift even further.

'I have spoken to couple of real estate agents that say they have a shortage of listings at the moment and they'd like some more listings.

'The stronger, more appealing homes are getting snapped up quite quickly – and sellers seem a little bit more realistic in what they're going to get, which is helping to move things along a bit,” says Paul.

QV valuer Richard Allen reiterates this optimism by saying 'sales are ticking over well with enough demand in the market”.

'The drought, especially, doesn't appear to have had any negative impact at this stage. Hamilton could also reap the benefits of some proposed developments in the dairy industry nearby.”

Paul says while things are still moving at the higher-end of the market, he believes low interest rates are spurring the small confidence boost.

'There is still an element of new first home buyers finding it more affordable than in the past. Things like Kiwisaver and Welcome Home Loans help them get deposit.”

'I think buyers a bit more confidence than they have been in last wee while –and I hope it keeps heading in the right direction.”

QV operations manager Kerry Stewart says the increase in nationwide values is now being driven by all the main centres, not just Auckland and Canterbury.

'The value increases in the other main centres is much slower than in Auckland and Canterbury, but the trend is definitely positive. The provincial centres remain more variable.

'Buyers are showing more optimism and confidence, although are still being careful in their decision making. The exception to this is in parts of Auckland where demand is so high that there is little opportunity to delay making offers,” says Kerry.

Values in the Wellington area are showing some growth, now 2.0 per cent above this time last year with a 0.8 per cent growth in the last three months.

Christchurch values also continue to increase, now 9.4 per cent above last year, while Dunedin has also seen another steady increase, now up 1.1 per cent during the last three months, and 4.8 per cent up on last year.

The provincial centres are fluctuating but generally the market remains stable with the main areas continuing to grow. Areas such as Hawke's Bay and Wairarapa are witnessing some optimism as per other areas of the country but buyers remain cautious and are still taking their time. Areas like Whangarei, which has previously been declining, has experienced a slight increase of 0.2 per cent during the last three months.