An Auckland real estate agency is reporting a surge in interest from property investors who want to buy up large before new tax rules come into force.
RadioLIVE has been given a letter sent out by a Barfoot & Thompson agent based in Onehunga, which says some investors are rushing into the market.
From October, people who buy and sell a house within a two-year timeframe, will have any gains taxed as income, unless it's their family home.
The letter, from real estate agent Kevin Liu, notes an "upward spike in demand" as some groups of buyers try to buy before the changes come into force.
He says properties in his area are selling for "premium prices".
"You may have heard on the news recently or read in the paper the changes which are taking place on 1 October, 2015," Liu wrote.
"These are likely to have an impact on property values. The changes are outlined below:
Rushing to beat new tax legislation is a common tactic, but a further boost to prices in Auckland is surely not what the Government intended.
Labour's Phil Twyford says the rush by investors is entirely predictable.
"Even the very weak rules that the National Government is bringing in are causing a spike in interest from some groups of buyers. It just shows how absolutely out of control speculative activity is in the Auckland real estate market."
No one from Barfoot & Thompson would comment when contacted by RadioLIVE about the letter.
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