The man was able to grab hold of the kontiki and hang on before being rescued by Mr Houlahan, who said the man would have been about 700m out from shore.
"The boat all but flipped ... it got full of water."
He said if the other man had tried to reach his friend, "you would have had two guys in trouble out there instead of one".
Mr Houlahan hoped the incident would bring awareness to people about dangers in the water.
"For God's sake, on this blimmin coast be careful ... check your weather, check your sea."
It was lucky both men were wearing lifejackets, he said.
"He would have been a goner without it."
There have been eight deaths in the water in New Zealand since Christmas Day, including a drowning in Whanganui where a 17-year-old boy was caught in a rip.