Homes in Auckland, Christchurch and Christchurch-Bay of Plenty have risen by more than 6 per cent in the past year, with the number of bungalowing properties in the three New Zealand cities rising by 50 per cent.
Auckland house prices rose by 6.8 per cent, up from 6.3 per cent last year, while Christchurch rose by 10.6 per cent and Christborough rose by 5.3, according to data from the National Housing Statistics Agency.
“Bungalows are the best-performing segment in the market in terms of both price and quality,” said the NHSA.
It is also the most affordable for those in the middle-income bracket, with average house prices in Christchurch rising by 4.7 per cent compared to 4.2 per cent for the next highest-earning households in the country.
The NHS, however, says there are many reasons why prices may be rising, including the impact of climate change, the economic recession and a new surge in demand for rental accommodation, including in the developed world.
In its latest housing report, the NHSA said the country had been “a high-quality rental market” for more than 20 years and that prices had risen as a result of the boom in house prices.
The number of new homes has risen by 20 per cent since 2009, but prices have fallen by almost a quarter since 2000.
Prices for new homes in Auckland rose by almost 4 per cent between 2013 and 2017.
Auckland home prices have also increased by more in the last year than they have in the previous 10 years.
However, it is unclear whether the rise in prices is the result of a lack of demand or a lack in supply.
The housing market in Christborough has also been affected by a sharp fall in demand, with house prices declining by 12 per cent over the last three years.
Auckland is currently seeing the strongest increase in house price growth in the world, and in the capital is seeing a particularly strong trend.
A study published in the journal Housing Economics said house prices have increased by 17 per cent nationally since 2010 and by 16 per cent globally since 2011.
New Zealand’s housing market is expected to continue to expand and in 2019, prices will reach levels seen in other developed nations, including New Zealand, Australia and the United States.
However there has been a fall in New Zealand prices since 2014, when prices fell by more then 6 per “per cent”, according to the NHP.