House price growth in fast growing towns to slow

She says the housing bubble has been strongest in provincial New Zealand over recent years, but the emphasis may now move to larger urban areas.

“There are many towns and cities where house prices have soared, but where, based on population growth, the sustainability of these gains is questionable,” she says.

Several districts including South Waikato, Wairoa, South Taranaki, Ruapehu, Rangitikei, Clutha and Gore experienced a decline in the number of occupied dwellings between March 2001 and March 2006.

ost still enjoyed rapid rises in house prices, the strongest being Clutha at 132%. The only laggard was Wairoa, where house prices rose 56%, well in excess of the rate of inflation, but still well behind the national average.