Dunedin house values feared much like all other main centres last year, with property values dropping just under 8%

However Mark Dow of QV Valuations says the drop in interest rates has seen an increase in market activity, and that values appear to be flattening.

South Dunedin saw the biggest fall - down 12.1%while property prices on the Taieri dropped just over 7%

Dow also stated that to put the decline into perspective it's important to note that between 2002 and 2007 property values grew by 120%.