Property prices in New Zealand remained -1.1% below September 2008 prices according to QV, New Zealand’s largest property information company.

Property prices peaked in late 2007 and remained -7.1% below that in September 2008 but improving market conditions have strengthened prices by +2.7% in the last five months.

Average sale prices in Wellington were $436,633 in the month, out-ranking Auckland and Christchurch by 0.6% and 0.4% respectively. Some areas reported surge in sales and listing but strong competition among buyers is being experienced in some areas where there is a shortage of listing.

A geographic breakdown showed that Auckland values are now +0.6% above last year, and Wellington are up by +1.1%, Christchurch +0.4% more and Dunedin’s property prices have increased by +2.2.

Tauranga is still -1.8% below last year’s pric but has improved rapidly over recent months. Hamilton is the only main centre to drop back slightly and is now -0.9% below last year. Values in many provincial centers including Whangarei, New Plymouth and Palmerston North continued to fluctuate in September.