House prices are continuing to soar in Auckland, but the Government's confident its plan will eventually bring them under control.

The latest house price index from Quotable Value shows valuations in the Auckland region shooting up 24.4 percent annually.

The figures also show the average Auckland house price increased by 2.4 percent between September and October.

Finance Minister Bill English says part of that is due to favourable market conditions.

"You've got to remember here interest rates are quite low, the lowest in 50 years and that has been encouraging home buyers, but they need to remember at some stage interest rates can go up, so they should be careful about too much debt," he said.

Prime Minister John Key says they're watching the situation.

"There's a lot of supply coming on to the market, but as you've seen, the Minister of Finance is looking closely at whether there's ultimately more things that need to be done."

Key says it's been proven before in Christchurch, that the best fix is rebalancing supply and demand.

He says it's important to remember house prices aren't a unique problem, with Vancouver, London, and Sydney all facing a similar issue.

But, Labour claims the Government's efforts to curb Auckland house prices have failed.

MP Phil Twyford says the figures show the National Party's much touted measures to clamp down on sky-rocketing house prices have been totally ineffective and have failed to deter speculators.