Median house price increases across Otago's townships and Dunedin's suburbs may have eased into single figures for the first quarter of 2016, but "critical shortages'' and high prices persist around Queenstown, overflowing into other Central Otago towns.

Eighteen of the 27 towns and suburbs are showing more than double-figure percentage gains since the height of the last property boom in October 2007.

In data released by Quotable Value, national spokeswoman Andrea Rush said she expected continued upward pressure on the residential property market around Central Otago and Queenstown, and the supply of homes, investment property and holiday accommodation to be unable to meet continued high demand.

"Demand is being driven by strong tourism, continued record-high net migration and a growing awareness of Queenstown as a desirable location to purchase property in the global property market,'' she said.

"For an entry-level home in Queenstown, a buyer is now looking at needing over $700,000,'' Ms Rush said.

Fernhill was showing a "whopping 8% increase'' over the first quarter of 2016 and even Arrowtown was showing growth of 4.8%.

The median there was pushing $1 million, at $944,900, she said.

She understood more people were squeezing into the remaining rental properties around Queenstown, and there were reports of very high numbers of tenants living in flats.

Ms Rush said NZ Ski had to lease the former single working men's chalets, built for the Clyde dam project in Cromwell, to provide accommodation for between 500 and 700 ski season staff.

In the Central Otago-Waitaki area, Cromwell, Oamaru, Oamaru north and South Hill are all up on 2007 peak prices by between 10% and 14%.

Across Dunedin, the north Dunedin area outstrips any other for post-peak gains, up 25.4% since 2007.

Andersons Bay, Dunedin central, Fairfield, Green Island, Maori Hill, Northeast Valley and Wakari all had gains in a range of 12%-16%.

QV's Dunedin registered valuer, Duncan Jack, said Dunedin suburbs' rates of growth were much more moderate than those of many Central Otago and Queenstown Lakes district suburbs.

"However, compared with previous quarters for Dunedin, the rate of growth is marginally higher, if anything, than it has been, which is indicative of the steady growth pattern in home values across the city.''

The Dunedin market outlook in the short to medium term remained positive.

Strong buyer demand was still prevalent and agents were reporting strong inquiry levels, Mr Jack said.

The recent halo effect from Auckland's rapid rate of growth in home values did not appear to be having a greater-than-normal influence on the Otago market.

"However, we do continue to see demand from out-of-town investors in the Dunedin market and also from some movers choosing to relocate to Dunedin for the more affordable housing and different lifestyle the city provides,'' Mr Jack said.

She was seeing a country-wide trend, where home buyers and some investors were increasingly being priced out of the main centres, so looked to regional towns within commuting distance for more affordable homes or rental properties.

"It's likely that this rate of growth will continue during 2016 unless some of the measures the Government has been discussing are introduced, such as a land tax for foreign investors or a debt-to-income ratio,'' Ms Rush said.

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