Property sales volumes have dropped more than 30 per cent in Tauranga - although the median price has continued to rise.

Real Estate Institute of New Zealand figures released today showed sales volumes in Tauranga dropped 33.3 per cent from 192 sales in October 2015 to 128 last month. In Mount Maunganui and Papamoa, sales dropped 28.7 per cent from 157 in October 2015 to 112 last month.

Property values however have continued to increase. In Tauranga, values climbed 17 per cent year on year to $550,000 and in Mount Maunganui and Papamoa, the value jumped 20.6 per cent to $650,000.

Nationally, Waikato/Bay of Plenty was one of three regions to hit new record high median sale prices, while the national median price sits at $510,000.

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REINZ regional director Philip Searle said: "There are certainly lower numbers of investors in the market and something of a decline in first home buyer numbers also as the market adjusts to the new LVR rules and tighter lending conditions from banks.

"Inventory levels remain low across the region with a significant decline in the number of properties for sale over the past 12 months."