Rents at two-and-a-half year high, but OCR set to rise

The report also noted building approvals strengthened in May and house sales sustained this resurgence in June. The days to sell also improved in June to its lowest level in 13 months despite weak immigration as, "the market is slowly building momentum."

The ANZ Property Focus includes the ANZ Property Gauges, 10 gauges the bank uses to assess the state of the property market and look for emerging trends.

Of the 10 gauges, two point to house price rises, three indicate either rises or no movement, four suggest falls and one is neutral.

Both median rent - at a two-and-a-half year high and predicted to rise further - and interest rates point to price rises.