Otago and Southland experience booming property prices as Auckland's dip

House prices might be falling in Auckland but the bottom of the country is experiencing a property price boom.  

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Real Estate Institute statistics show record median house prices in Otago and Southland. Source: 1 NEWS

Statistics out today from the Real Estate Institute of New Zealand show record median house prices in both Otago and Southland. 

Aucklanders for 25 years Linda Taylor and her family are loving their new Dunedin home. 

"Not having to get up at 5.30 in the morning to beat the traffic. My kids are walking to school for the first time ever. So no, we wouldn't go back," Ms Taylor told 1 NEWS.

Auckland traffic was not the only reason for the family's move south.

"We've got a really nice four bedroom house here in Dunedin. We could of brought four of these houses for what we were selling our house in Auckland for," she said.

But the price gap with the larger centres is closing.

Statistics from REINZ show over the last year the median house price in Otago rose by 21.6 per cent to $492,000 dollars.

In Southland it increased by 25 per cent to $300,000.

But Auckland's median price fell by 2.7 per cent to $856,000.

"Something I read this week said that Dunedin's done 48 per cent over the last four years," said Liz Nidd, REINZ regional commentator.

REINZ chief executive Bindi Norwell said that is "quite a significant jump" and "they were record median prices and the only ones in the South Island".

In Dunedin alone, the house prices have risen 16.7 per cent in the last 12 months. That means if you brought a house for say $600,000 it would now be worth roughly $100,000 more.

The statistics are for residential properties so are not skewed by bigger sales such as farmland.

And prices are expected to keep rising. 

"They're increasingly popular areas to live in as well as we can't keep up with the level of demand, we need more houses to be built in the areas," Ms Norwell said.

So those thinking of a move south should still expect to face some stiff competition.