NZ house prices close to record high

[WELLINGTON] New Zealand house prices held near a record high in September, with strong growth in the nation's two main cities, while central bank lending restrictions were yet to have an impact, government property valuer Quotable Value (QV) said yesterday.

QV's residential property index rose 8.4 per cent in the year to Sept 30, compared with an 8.5 per cent annual rate in August. The index is now 9.2 per cent above the market's previous peak in late 2007.

Prices in the biggest city Auckland and earthquake damaged Christchurch were growing ahead of the rest of the country, with lack of supply still a major influence.