Four Dunedin suburbs were analysed as part of CoreLogic NZ real estate research and one was ahead of the pack.
In Mosgiel, 314 properties were sold from June 2017 to June 2018 taking on average 13 days to sell - making it the third-fastest selling suburb in New Zealand.
Northeast Valley (16 days), St Kilda (17 days), South Dunedin (17 days) were also listed inside the top 25 fastest-selling suburbs.
Data from 293 suburbs was analysed and 62 suburbs were identified as areas where properties now spent three weeks or less on the market before selling.
The other fastest-selling area was the Manawatu, where houses took on average 15 days to sell.
Properties were also selling quickly in Invercargill, taking on average 24 days to sell, while other southern areas including Central Otago (29 days) and the Queenstown Lakes district (32 days) were slightly less heated.
The figures are based on research conducted by the financial services company for OneRoof, NZME's property listing website.
Metro Realty managing partner Mark Stevens said property in Dunedin was selling quicker than at any time during his 33 years in the business.
One auction the firm held, for a property in Wakari last month, attracted almost 70 people, Mr Stevens said.
Increased interest from outside the city - both national and international - combined with a lack of available land and properties had led to the selling fever, he said.
"There's a big shortage of land in Dunedin which, in my opinion, is pushing up the prices and pushing those sales."
There was a large increase in demand for low- to medium-priced properties, he said.
LJ Hooker Dunedin sales manager Conrad Stedman said there was huge demand for housing across the city, but particularly in Mosgiel.
"There is real pressure in Mosgiel and there just aren't enough properties being listed to keep up with the demand and it's been busy out there for sometime," Mr Stedman said.
Because of the demand, prospective buyers were now considering locations in the city which were once seen as less desirable, he said.
Already this week his firm had sold 11 properties, and in the past month auctions had attracted up to 30 or 40 people, he said.
Until more land and property came on to the market, homes would continue to sell quickly, he said.
CoreLogic NZ senior researcher Kelvin Davidson said there was a tendency for the fast-moving areas to also be cheaper.
Of the suburbs where properties were selling in under three weeks, 19 had median property values of $500,000 or less, Mr Davidson said.
- Additional reporting NZME
