Auckland's eye for the Bay of Plenty property market show no signs of abating.

One Tauranga realtor believes this should be welcomed with open arms.

Houses in the excess $1million bracket continue to be sold under the hammer. Photo: File.

The latest monthly QV House Price Index show Tauranga home values have risen 4.1 per cent in the last three months and are now 0.8 per cent above the previous peak of 2007.

A spin off from large numbers of Aucklanders moving to Tauranga, Hamilton and the Western Bay of Plenty.

'There are reports that of those present at open homes in Tauranga, as many as 60 per cent are regularly from Auckland,” says QV national spokesperson Andrea Rush.

Along with Tauranga, values in the Western Bay have also risen by 3.9 per cent in the last three months, and 4.8 per cent year on year.

QV homevalue Tauranga registered valuer David Hume says there has been significant demand and increasing property values with homes in Tauranga and Papamoa now selling much more quickly than they have for several years.

He says the strong demand from out of town buyers has created a degree of panic for local buyers not wanting to get priced out of the market with the $300,000 to $500,000 range seeing the biggest demand, also fuelled by historically low interest rates.

'A much higher proportion of properties are being sold at auction as real estate agents are struggling to correctly price properties,” says David

'There has also been a sharp increase in sales in the $1 million plus range, as lower value benchmarks increase. Real estate agents reporting a 100 per cent increase in sales in this price bracket in comparison to 2014.”

In the Western Bay of Plenty, the market is strengthening, sales volumes are up across the board and buyers are coming from far and wide.

There's been a significant increase in demand for property in Omokoroa in the last two months and the market there is frantically busy and there is a shortage of listings, adds David.

He says the recovery of the Kiwifruit industry has also exposed a real lack of rental accommodation in Te Puke which has resulted in increasing demand from investors looking to purchase rental properties for good rental returns.

Paengaroa has seen values of vacant section in new residential subdivisions increase by 50 per cent in the last 12 months.

'There is also strong demand in the $600,000 to $750,000 range in Te Puna with a significant increase in demand over the past two months which has resulted in a rise in home values there.”

Eves and Bayleys Real Estate chief executive Ross Stanway says these figures back up what the property market has been experiencing in the last 12 months.

With no slowing down, it seems with an ever increasing level of buyer activity and interest in the Tauranga and Mount Maunganui area - buoyed by the Auckland-effect.

A movement Ross firmly believes is a testament to the region's booming growth and popularity.

'The Auckland market is real, and strong and growing,” says Ross.

'I think it's great. We have to step back from a property view and the fact that the region is becoming as popular as it is, is a fantastic thing brining new families, jobs and skills to the region.”

He re-emphasises the traditional Auckland movement of semi-retired or older generation is now being outnumbered by young families wanting to 'come for the long haul”.

Nationwide, residential property values for June have increased 9.3 per cent in the last year and 3.6 per cent in the last three months.

This means they are now 25.6 per cent above the previous market peak of late 2007. When adjusted for inflation the nationwide annual increase drops slightly to 9.2 per cent and values are now 7.8 per cent above the 2007 peak.

Andrea says there is a severe shortage of properties listed for sale across all of the main centres and this winter slowdown is dampening activity in some areas while in other areas the lack of listings is leading to increased competition amongst buyers which is driving values up.

Sales volumes are higher than this time last year with high migration and the forecast of lower interest rates fuelling increased levels of activity in the housing market in many parts of the country.

'It appears the prospect of changes to the LVR deposits and tax of residential investment property may be creating some urgency amongst buyers wanting to purchase before the changes come into effect on October 1.”