Five times as many mortgagee sales were held in Otago in May than in the same month last year, with Queenstown Lakes district the hardest hit, latest figures show.
The data, released by land data company Terralink International, showed 247 registered mortgagee sales nationally in May, compared to 88 for the same time last year.
The North Island accounted for three-quarters of the mortgagee sales, with nearly half held in Auckland.
In Otago, there were 16 mortgagee sales in May, compared to three in the same period last year.
In March there were 11 sales, and seven in February.
Sales in May were also up 60% on the previous month's 10 sales, which compared to eight in April 2008.
Of the 16 sales, 11 were in the Queenstown Lakes district (up from three in April), four in Central Otago (up from two in April) and one in Dunedin (down from five in April).
Terralink managing director Mike Donald said the numbers were a sign that stress in the property market was not letting up.
"The numbers of mortgagee sales in May is on a par with the previous month, but the number is still at a level unseen in the 15 years we've been recording these figures.
"All indications are that increasing numbers of New Zealanders will lose their properties via mortgagee sales. Early predictions for mortgagee sales in June show the level will reach a new record."
Those being hardest hit by mortgagee sales were individuals and corporate property investors, he said.
"Many New Zealanders took advantage of the property boom by buying a number of properties, but now that times are tough servicing multiple mortgages is becoming impossible for increasing numbers of New Zealanders."
Of the total mortgagee sales, 81% were for individuals or companies who owned more than one property.
"In contrast, only 19% were for properties owned by an individual who had only one property. That would be what we would think of as the family home," Mr Donald said.
