NEW Zealand property values rose at the slowest annual pace in 14 months in August.

Restrictions on low-equity home loans, rising interest rates and uncertainty around the coming election have all affected the housing market. Despite the slow down, housing values are now some 16 per cent above the previous market peak in 2007.

Reserve Bank governor Graeme Wheeler has hiked the official cash rate from 2.5 per cent to 3.5 per cent since March, in a bid to take steam out of an over-heating property market in Christchurch and Auckland.

"Since September last year the growth rate of New Zealand residential property values has been slowing and this trend has continued over the past month," said QV spokeswoman Andrea Rush.

Source and full story: Scoop