Waitakere and South Auckland are leading the charge as property values increase to record highs.  The trend is expected to continue, although it is the rate of increase will be lower in 2014.

On the North Shore, values have increased between 15% and 18% annually, and Auckland house prices averaged $700,000 in December


The Reserve Bank's loan-to-value restrictions (LVR speed limits) have seen a decline in the number of new listings, but Auckland values are expected to keep rising this year as demand continues to outstrip supply.

Experts and organisations including The International Monetary Fund and the OECD have warned that house prices make New Zealand vulnerable to a downturn.

QV New Zealand reported that 2013 ended with values 10% above the previous year, with most of the increase being driven by Auckland and to a lesser degree, Christchurch.

Supply and demand pressures is not as evident outside these areas where the LVR speed limits are likely to decrease prices.