Residential property sales in New Zealand increased by 42.5% in February compared to the previous month, while prices were up 0.9% month on month.

The data from the Real Estate Institute of New Zealand also shows that sales are up 12.6% compared to February 2014 and the month saw the highest February sales level since 2007.

The national median price in New Zealand in February was $430,000 (£215,000), an increase of $15,000 or 3.6% compared to February 2014 and an increase of $4,000 from January.

The surge in sales volumes in February compared to January was stronger than normal, but partly reflects a catch up after there were fewer sales than expected in January, according to REINZ chief executive Colleen Milne.

But it is Auckland that is leading the growth with a rise of 14% in median prices from $592,000 to $675,000 (£337,000) over the past 12 months. In effect there has been no increase in the median price for New Zealand, excluding Auckland, between February last year and February just gone.

Milne said: “This underlines again the view that there are two distinct real estate markets in New Zealand, Auckland and the rest of the country.”