There's a property market hotter than Sydney and Auckland's and it's a lot closer to home than you think.

Queenstown, known for its extreme sport and world-class tourism, has seen property prices increase more than 31 per cent in the year through to September.

The average price of a Queenstown home is now $950,000 - twice the 15 per cent increase rate of Auckland.

In 2015 the Central Bank tried to curb lending to investors in Auckland which may have spurred buyers to look to the regions, Bloomberg reported.

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Queenstown realtor Gail Hudson told Bloomberg that Aucklanders "can get equity out of their homes more easily than they could five years ago."

"They've seen it as an opportune time to take some money out and buy here,'' Hudson said.

In August the average house price for an Auckland property surpassed $1 million mark.

Property prices in Hamilton, Tauranga and Wellington have also soared 20 per cent in the past year.

According to Colliers International's 2016 Queenstown Property Market Review and Outlook report Queenstown is experiencing an unprecedented real estate boom supported by significant expansion of the commercial and residential sectors.

Colliers Queenstown's valuation director John Scobie told the Herald he expected the town's property market growth would continue for the next two to three years.

"We anticipate Queenstown property market's growth and expansion to continue for the next two to three years, boosted by very strong tourism and net migration trends, low interest rates, ongoing supply constraints and residential rental growth driving investor returns," he said.