"The way the top end of the market is continuing to strengthen, characterised by the building activity along Marine Parade at present and reported levels of enquiry from agents active along this strip."
Read more: 'Outrageous' rental market forces families to live in bush
Mr Hume said well located Mount Maunganui properties were setting new benchmarks.
"The recent sale of a renovated three-bedroom 1950's Bungalow on a 309 square metre section for $905,000 at auction earlier this month is a good example of this.
"Previously less desirable areas of Mount Maunganui are also undergoing a real period of gentrification with a number of properties along Maunganui Road south of Golf Road being renovated in the past 12 months.
"Given the similarities to the peak of the 2006 - 2007 property market and a reported levelling off in the Auckland, everyone is now starting to ask the question: 'How long can this period of rapid house price increases be sustained?'"