Home values in Tauranga City have continued their upward trend seen over the past few months rising 7.7 per cent year on year and 3.0 per cent over the past three months, according to the latest QV figures released today.

Values in the Western Bay of Plenty have also risen by 5.9 per cent since July last year and 3.3 per cent since May.

Read more: Three of NZ's richest men call Tauranga home

QV homevalue Tauranga registered valuer David Hume said: "Investors from Auckland continue to be very active in the market."

"Homes in affordable parts of the city are being snapped up by out of town investors looking for good yields."

"There are reports of Aucklanders making offers over email and homes being brought sight unseen and without market valuation or building reports."

"Demand in the regional towns such as Te Puke continues to grow as first home buyers priced out of the rising Tauranga market look further afield for homes still in an achievable price bracket."

The latest monthly QV House Price Index shows that nationwide residential property values for July have increased 10.1 per cent over the past year which is the fastest annual rate since 2007. Values rose 4.1 per cent over the past three months and are now 27.4 per cent above the previous market peak of late 2007. When adjusted for inflation the nationwide annual increase drops slightly to 9.9 per cent and values are now 8.8 per cent above the 2007 peak.

QV national spokesperson Andrea Rush said: "We are now seeing a definite upward swing in market activity in the upper North Island. This is especially evident in Hamilton, but also in Tauranga, Whangarei, and the Franklin, Hauraki and Waikato Districts."