11.12.05 1.00pm

Growth rates in property values picked up in November after slowing in October, Quotable Value (QV) said today.

QV said residential property values increased 15 per cent in the year to November. This compared to a 14.5 per cent annual growth rate in October, which was down from 14.9 per cent in September.

QV spokesman Blue Hancock said the November growth was an indication the market remained buoyant despite thoughts it may have been starting to level out.

In the main centres, Hamilton property values were up 27.7 per cent, Christchurch up 19.3 per cent, and Wellington up 12 per cent. The growth rate in Dunedin fell to 13.8 per cent from 16.2 per cent, while Auckland City property values were up just 4 per cent.

In the smaller centres, Wanganui showed property value growth of 38.3 per cent, Whangarei of 34.5 per cent, Gisborne 28.4 per cent and Rotorua 27.7 per cent.

Last week Reserve Bank Governor Alan Bollard again hiked the official cash rate in an attempt to rein in the rampant housing market. Dr Bollard said that house prices were currently 15 per cent higher than the RB had anticipated they would be 12 months ago.

The OCR is now 7.25 per cent, the highest in the industrialised world.