The median house price across Otago rose to a new record of $310,000, up $28,000 compared with December 2015.

Prices rose 29% in North Otago and 7% in Dunedin, but fell by 16% in South Otago. Sales across the region fell 12% compared to December 2015 with sales falling 8% in North Otago, 13% in Dunedin and 14% in South Otago.

REINZ Regional Commentator Liz Nidd says Investors from Auckland continue to be active in the market, with more activity from that source than other investor groups. She says LVR rules have been absorbed by the market, prompting an increase in first home buyers.