New Zealand housing prices hit new high on limited supply

New Zealand house prices hit a record high last month, as strong growth in the nation's two main cities offset a flat showing elsewhere.

Government property valuer Quotable Value's residential property index rose 8.5 per cent in the year to August 30, compared with a 8.1 per cent annual rate in July.

The index is now 8.3 per cent above the market's previous peak in late 2007.

Prices in the biggest city Auckland and earthquake-damaged Christchurch were growing ahead of the rest of the country, with lack of supply still a major influence.

Auckland prices rose 13.1 per cent in the 12 months to August, and prices in Christchurch were up 11.4 per cent, because of limited supply.

The Reserve Bank of New Zealand has imposed limits on the amount of low deposit-high value house loans (LVR) by banks from the start of October in a bid to slow the growth in prices.