Interest rates drive investors into property: Alexander

“This investment surge will focus naturally first of all on lower-priced houses in Auckland, then more and more on relatively expensive ones in favoured suburbs, with people willing to gear themselves into places over $1 million in the expectation that one to three years down the track they will be able to flick it on for a tidy profit.”

He said investors would also become more active in other parts of the country.

But so far the Auckland housing market buzz hasn't spread to many other parts of New Zealand.

In Auckland, 54.2% of agents reported that buyers were more motivated. In Wellington that figure was only 10.5%.