The Coromandel Penninsula is getting its slice of the housing market pie as buyers embrace the region.

Real Estate Institute of New Zealand (REINZ) figures showed sale volumes in the popular holiday destination increased by 91 per cent between June and August this year.

The Real Estate Institute of New Zealand says sale volumes on the Coromandel Peninsula have risen by 91 per cent between June and August of this year. Photo: File

REINZ chief executive Colleen Milne said the region was opening up as "another suburb of Auckland" and was easily connected by a two-hour ferry ride to the city.

"It is a great option for those looking for a quieter lifestyle but with the ability to reach Auckland if need be," she said. "The Coromandel region is also a popular place for many to holiday and with low interest rates and property values increasing so much in other holiday hot spots, such as Northland, it is reasonable to suggest that many have decided to secure a holiday home in the Coromandel instead."

Median sale prices in Coromandel have increased over this same period by seven per cent while Northland recorded the highest percentage change in median of ten per cent.

Harcourts Coromandel branch director Ian Kemp said REINZ's latest figures matched those in Harcourts' database, which showed a 90 per cent increase in sales for the whole Peninsula and a 60 per cent increase for Coromandel Town and its surrounding region.

"We've definitely noticed quite a significant increase in inquiry and sales over the last year."

Traditionally Coromandel's buyer pool came from Auckland and the Waikato but Kemp said there had been more international inquiry recently, particularly from Kiwi expats living in the United States and London.

Sales leaned more to holiday homes, Kemp said, but it was also a popular destination for retirees. "We've had quite a number of people looking to cash up in Auckland, for obvious reasons. But really, for people who are not in the retiring or semi retiring bracket it's probably more of a dream than a reality."

Bayleys Coromandel branch owner Mary Walker said sale volumes had been steadily building over the past 12 months.

"If you think back to the last three to five years, we've had an economic crisis and all those sort of things had a significant impact on our sale volume and our sale price."

While there were a lot of buyers looking into property in the Coromandel, Walker said it was a "catch-22" as there was not much stock on the market.

Auckland buyers were heading to Thames, she said, and looking to live there permanently and commute.

"And on the east coast it's probably a little bit the same. There's certainly a lot more holiday people looking at buying and a few permanents shifting out of Auckland that are taking early retirement."

There had been a rise in section sales, Walker said, but it was slowly "tottering away".

"It's not going gangbusters but there has been an increase in section sales to what there was say, 12 months ago."

- Stuff