UPDATED 5.02PM There's another region running hot on the heels of the Auckland property market.

The latest QV house price index shows the average sale price in the Queenstown Lakes District has risen 27 percent since July last year.

And while Tauranga also remains high, Hamilton values rose more than 30 percent to an average sale price of more than $513,000 since July last year, that's nearly twice as fast as growth in the Auckland region for the same period, the increase there was 16 percent.

In just the past three months prices in Hamilton have increased a whopping 8.9 percent, Auckland City for the same period was 5.6 percent.

But National Spokesperson Andrea Rush said the Queenstown market's suffering from a perfect storm of strong global and domestic demand for holiday homes, and a general lack of supply for locals.

She said average value in the district is now more than $910,000, clearly rivalling rapid growth in the Auckland region.

The average price a home sells for in Auckland is now more than $992,000. Some suburbs such as the North Shore and Auckland City are tipping the million dollar mark, sale figures show they're both over $1,160,000.

Andrea Rush said driving the increases are low interest rates, strong investor activity and high net migration.

Strong growth can also be seen in Hawkes Bay, Wellington, Nelson and Dunedin; home values rose 15.1, 14.4, 12 and 11.1 percent respectively but in contrast there's been fairly moderate growth in Christchurch.

The average sale price nationwide is now $600,000.

Andrea Rush said it's too soon to tell what impact the Reserve Bank's new 40 percent deposit requirement for anyone purchasing a property they don't intend to live in will have on the market.

But she said they have had reports it's led to some buyers withdrawing offers.

Values across the nation are now 45.4 percent higher than the last market peak in 2007, adjusted for inflation that's 23.5 percent.

But a prominent economist says we won't see a housing bubble pop and chaos ensue in the Auckland market.

ASB Chief Economist Nick Tuffley said construction is picking up, and he expects building consents will match demand in a couple of years.

He said Auckland prices won't fall but will steadily flatten off, and shortly after, Auckland will experience a fairly stagnant period.

Mr Tuffley said there's going to be a solid floor under the housing market for some time, for the simple fact that it would have taken so long for supply to catch up.

He added house prices are high compared to income and they're expecting increased resistance from buyers to purchase a house in Auckland.