Although the property values on average are 6.1 percent higher than the average price in 2009 for April, property sales are still weak. The Reserve Bank cited the weak property market as one of the reasons for not raising the official cash rate at the end of April.

QV Valuations said that the property values in April were 6.1 percent above the values at the end of April 2009, but that the average property values were still 3.9 percent below the market peak of 2007. Property values are rising slowly, which means investors can continue to pick up some good bargains.

The Real Estate Institute of New Zealand (REINZ) said the national median home price in April was $356,000, showing a reduction from $360,500 in March. Far fewer properties sold in April 2010, where only 5207 properties sold, compared to 6161 in March 2010 and 6210 in April 2009.

Some economists believed the property sales were lower in April as investors waited to hear the latest budget in May from the New Zealand government to know how the tax reforms would affect the investment. While some real estate agents are reporting a reduction in property sales over the past month or so, everyone in the industry is expecting the property market to pick up after the budget announcement.

Some regions provide investors with strong investment opportunities, with lower than average prices for properties now. Following is a regional summary for the property market across New Zealand.

Auckland
There is definitely a mixed bag in Auckland. Property values increased by 9.5 percent over the past year (calculated on a three month average to the same time last year), but the average sale price decreased from $546,062 to $532,538. There was more sales activity in the west of the region for properties between the $370,000 and $550,000 value range.

Christchurch
Property values in Christchurch increased by 6.9 percent over the past year, which is a lower increase than Auckland realised. However, the average sale price decreased less than in Auckland, moving from $374,117 to $367,688. The Hill suburbs, the Central region and the North suburbs all increased in value, but other suburbs around Christchurch had lower property sales.

Dunedin
Property values increased by 7.5 percent over the past year using the three-month rolling comparison with last year, but the average sale price in Dunedin still decreased about $7,000 to $275,142. However, there were at least nine properties sold in the $700,000 bracket, so the average price is deceptive. The Taieri area is the most buoyant region, with an annual growth of 10.2 percent, but Southern Dunedin was the lowest area for property sales since March.

Hastings
Hastings experienced a lower growth in property values than many other regions, registering just 3.6 percent above the property values for the same time in 2009. However, the average sales price for property in Hastings is still a respectable $332,033.

Hamilton
The average property value across Hamilton rose 2.7 percent when calculated on a three-month average and compared with the same three months in 2009. The average property price in Hamilton is now $357,200.

Invercargill
Invercargill showed a good average rise in property value over three months compared to the same three months in 2009, with property values raising 5 percent. The average price for property recently sold in the Invercargill region was $212,664 for April.

Queenstown
Queenstown was one of the few places where property values on average are less than the same time last year, showing a reduction in average value of 0.3 percent. The average property price for properties sold in Queenstown in April was $571,746.

Tauranga
The average sale price for the Tauranga region decreased only slightly in the last month from $413,173 to $412,080. The property values increased by 0.5 percent compared to the last year, calculated on a three-month average. This increase in property value is significantly less than in some regions, such as Auckland, Wellington, and Christchurch, but the reduction in sale price was much less, indicating that buyers are still willing to purchase property in Tauranga.

Wellington
Wellington saw an increase in average property values of 7.1 percent compared to the same three months ending in April 2009, and was one of the few areas where the average sale price also increased, rising from $458,260 to $460,365. The top end of the market is strong in Wellington, and properties in the Hutt Valley are selling well.

Overall, although there are some indications that the property market is still weak, investors have some terrific opportunities to buy good properties that will increase in value. Property values are slowly rising and are closing the gap to the 2007 peak. Meanwhile, the official cash rate remains low, so investors can lock in a mortgage at a low interest rate to make the most of the property market in the next couple of months.