Current rules allow for small owner-operated "home occupation" brothels. However, no more than four people could work in the business which could include two who didn't live there.
"We have been advised that the brothel has since closed, however we will be monitoring this to ensure that no further breaches occur," Pearce said.
Residents there had complained of parking issues and safety concerns since the brothel started operating about three months ago.
An occupant at the property said the house was also used as housing for international students from China.
Immigration New Zealand said it was against the rules for international students or any migrant on temporary visas to legally work in the sex industry.
Under the Prostitution Reform Act, only New Zealand citizens and residents can legally work in the sex industry.
The agency is urging anyone who knew about people breaching the rules, or people who were being forced to work in New Zealand illegally to contact them on 0508 558855 or the Labour Inspectorate on 0800 209020.