Wellington, Dec 7 NZPA - Property values have risen 4.1 percent off their low in April 2009 but are still 5.9 percent below the market peak in late 2007, according to QV Valuation.

Property values in November were 1 percent above last year and 0.2 percent above last month.

The increase in nationwide values has been driven by the main urban areas, which have risen 4.7 percent since the market low in April 2009. Provincial centres have risen 2 percent and rural residential areas only 0.4 percent on the same comparison.

Auckland region values are now 3.1 percent above last year, the Wellington area is up 2.9 percent, Christchurch up 2.8 percent, and Dunedin up 4.1 percent.

Values are above last year in Napier (0.2 percent), New Plymouth (6.6 percent), Palmerston North (2.3 percent), Nelson (1.1 percent) and Invercargill (0.4 percent).

But some areas are still below last year with Gisborne at minus 4.8 percent, Hastings minus 0.4 percent, Wanganui minus 2.2 percent and Queenstown Lakes at minus 6.1 percent.

The average sale price across New Zealand increased to $393,373 in November from $389,198 in October.

"The level of market activity has remained relatively static for most of 2009 and the usual pick up in activity over spring failed to materialise. While turnover activity, measured by number of days taken to sell a property, is improving in the main centres, total activity levels continue to be low. This is driven by the shortage of listings as prospective vendors decided to stay put rather than sell. This situation differs in the regions where listings are more abundant, but actual turn-over is slower," said QV Valuation manager Glenda Whitehead.

"There are signs in recent weeks that there are more properties coming on to the market, especially in the main centres. This increase in supply will help to ease some of the upward pressure on prices presently caused by motivated buyers competing vigorously for the few available properties," said Ms Whitehead.

QV Valuation expected increased activity and a balanced market conditions in January and February.