Auckland property values have increased by 16.9 per cent in the past year and the average Auckland City house now costs more than $1 million, QV says.
Latest statistics released by the property valuers today show that, New Zealand-wide, property values have increased by 9.2 per cent, led by far by the Auckland region.
The House Price Index showed the average value of an Auckland City property - suburbs in the former Auckland City Council territory - was now $1,003,144.
Waitakere City properties were leading the way within the Auckland region, increasing a whopping 19.4 per cent year on year.
Comparatively, average values in the Wellington region have risen just 1.5 per cent in the past year and the average value in Wellington City is now $546,577.
In Christchurch and Dunedin, prices have risen 3.2 per cent and 2.6 per cent respectively.
Large numbers of Aucklanders are flocking to buy property in Tauranga, Hamilton and the Western Bay of Plenty- QV's Andrea Rush
Also noted in the release today were considerable increases in property values in centres near Auckland, possibly due to Aucklanders trying to find homes outside the inflated Auckland market.
"Large numbers of Aucklanders are flocking to buy property in Tauranga, Hamilton and the Western Bay of Plenty resulting in rising values in these areas," QV National Spokesperson Andrea Rush said.
"There are reports that of those present at open homes in Tauranga, as many as 60% are regularly from Auckland, while around 15% of all buyers in the Hamilton market are now from Auckland.
"Values in the other main centres including Wellington, Christchurch and Dunedin continue to rise at a slower, steady rate."
Ms Rush said there was a "severe shortage" of properties for sale across all main centres, and the lack of listing had led to increased buyer competition, pushing prices up.
The average home value across the Hamilton City region is now $381,793, increasing just 4.4 per cent year on year.
In Tauranga, real estate agents were reporting a 100 per cent increase in sales in the $300,000-$500,000 bracket compared with the same time last year, and values were up 7.3 per cent.