House prices recorded an increase of 6 per cent on annual basis according to the latest data provided by industry watchdog. The housing price index revealed by the Real Estate Institute claims
0.2 per cent rise in November to stand at 3283 points.

House prices recorded an increase of 4.1 per cent in last three months up to November thanks to revival in demand and soft interest rates by lenders. Prices were at peak in November 2007 owing to property boom across the world markets and currently stand just 2.9 per cent below the peak level.

The index represents quite clear picture of property prices as it has been prepared on the basis of an average of sale prices for common groups instead of traditional method of raw median rice.

Prices rose 11.9 per cent in November in Auckland as compared to corresponding period last year. Similarly, Wellington and Christchurch recorded 4.7 and5.7 per cent increase in house prices.

Real Estate Institute President, Peter McDonald added that property prices remained almost stable during the reporting period. He further added, "It's been a long held belief that property doubles in value every decade. This trend has been borne out in this month's analysis of median house prices for New Zealand."