The Tauranga property market turned over more than $1 billion in sales last year but industry leaders say there is no boom despite increasing confidence.
Figures released to the Bay of Plenty Times by the Real Estate Institute of New Zealand show 2596 properties sold in 2012 compared with 2160 in 2011.
In total, 1469 properties had been sold until the end of June this year for a total sale price of more than $611 million.
Tauranga Harcourts managing director Simon Martin said it had been a slow climb but the market had stabilised.
"There has been a slight increase in volume over the last three years and that indicates to me a lot more confidence ... but we are definitely not booming like Auckland and Christchurch. However, it's improving and that is evident."
A number of economic indicators were looking positive, he said.
"The number of people coming into New Zealand is increasing, the interest rates are reasonably low and there are no disasters happening at the moment."
About 10 per cent of properties in the Tauranga marketplace were selling each month, he said.
LJ Hooker Papamoa licensee John O'Donnell said people were feeling more secure in their jobs and businesses.
"In 2008 the world fell apart and the following three years were hard for everybody. Things rapidly improved last year and now we have our confidence back."
Until six months ago, properties under $450,000 were selling but now million-dollar homes at Mount Maunganui were showing traction.
"It's always been seen as the best place to invest because there is more potential for capital gain."
Ray White Papamoa and Mount Maunganui principal Greg Purcell likened the situation to a marathon and said New Zealand had come from "the middle of the pack and was heading toward the front".
It was a steady-as-she-goes scenario, he said.
"I doubt we are going to see the periods of growth that we saw between 2002 and 2007 - that will be highly unlikely and there is nothing to justify that. I think the best we can hope for is a steady improvement and we are getting that."
Tauranga Chamber of Commerce chief executive Max Mason said the level of business confidence varied between sectors.
"Long-term confidence is influenced by a perception of certainty in the business environment, and in the building and related sectors this is growing. Some other sectors feel the opposite. Generally speaking, however, business confidence is growing."
Increasing confidence for businesses meant more investment in capital assets, more stock purchases and more staff being hired, Mr Mason said.
"It also means more consumer spending for the general population, which helps retailers."
Business commentator Bernard Hickey said there was still debate about the levels of investment in property.
"It's an age-old question - do we invest too much money in rental properties compared with other investment opportunities like term deposit, the share market or maybe investing in your own business. Because house prices have risen in most parts of the country over the last couple of decades and there are certain tax advantages for buying property. Banks are very keen to lend on property and it has been a popular choice for a lot of people. Some would argue you are better off in the long run if you choose to invest in things apart from property but that is a matter of debate."
In total, $204, 209, 892 worth of residential property was sold in the Western Bay of Plenty last year.