The Government is already having an effect on the property market.

The latest QV House Price Index shows nationwide residential property values rose 3.6 per cent in the November quarter.

The annual rate of growth was 6.4 per cent.

Wellington was one of the regions leading the trend, where house prices are up 3.4 per cent in the last three months.

Centres outside of Wellington city, such as the Hutt Valley and Porirua, are booming.

Senior Consultant David Cornford said the high demand for properties is making it a seller's market.

"We have seen a bit more stock come to the market over the last month. There is still pretty good demand at open hopes. Properties that are well located and well maintained generally still achieving multiple offers and good interest."

He said it's probably because of the amount of new builds in those areas.

"New housing is in quite strong demand at the moment because they are not subject to the same LVR restrictions as existing properties. Some investors are bringing to the market due to the Government policy around investment policy."

Further south, Christchurch's property market is continuing to cool down, as cautious investors wait for the government's moves across the sector.

According to the QV figures, values across Christchurch city have dropped 1.5 per cent in the last 12 months.

The average house is worth just under $500,000, 30 per cent higher than the 2007 peak.

Registered valuer Hamish Collins said investors are playing the waiting game.

"After that period of the coalition being formed, now people are just sitting on their hands waiting to see what she's going to do, what's going to happen, what changes they are going to make."

He said the LVR restrictions have created a handbrake for investors.

"They are probably going into a long period of no growth. How long that may be, I don't know, interest rates are staying pretty low for the foreseeable future."

However, thee's a lack of a clear trend in house values across Auckland.

The latest QV figures show Papakura is going strong, with a 3.9 percent rise in values in the November quarter.

QV spokeswoman Andrea Rush says Rodney aThere's a lack of a clear trend in house values across Auckland.

The latest QV figures show Papakura is going strong, with a 3.9 percent rise in values in the November quarter.

QV spokeswoman Andrea Rush says Rodney and Manukau have seen a small slide in the past three months.

"Whereas Waitakere, central suburbs have ticked back up again. So it's a very mixed picture out there."

Franklin values are up slightly - just half a percent.

However, there's a lack of a clear trend in house values across Auckland.

The latest QV figures show Papakura is going strong, with a 3.9 percent rise in values in the November quarter.

QV spokeswoman Andrea Rush said Rodney and Manukau have seen a small slide in the past three months.

"Whereas Waitakere, central suburbs have ticked back up again. So it's a very mixed picture out there."

Franklin values are up slightly - just half a percent.

Meanwhile, heartland New Zealand is helping the housing market for the first time in many years.

QV spokeswoman Andrea Rush said the upturn is being led by regional centres which haven't seen values rise in years.

"Places like Palmerston North, Rangitiki, Stratford, and further south Invercargill and Southland have seen quite strong value growth."

Rush said it appears the traditional spring and summer surge may finally have arrived, and that the easing of LVR restrictions and retail banks' lending criteria is likely to further improve activity and demand over summer.