Otago house prices made almost double the percentage gain of the national median price, up 11% from October last year to $270,000.
Auckland continues its surge, up by $107,750 or 16.8% to $748,250 against October last year.
However, Auckland prices were down 3% when comparing October with September, to some extent coming under the influence of recently enacted new loan to value ratios and tax laws on selling investment homes, according to data of the Real Estate Institute of New Zealand (REINZ).
The national median price rose 7% to $460,000.
If Auckland was stripped from the data, there would be a record national median price of $370,000.
The separate Central Otago Lakes region, which often mirrors Auckland, was down 7% on October last year at $465,000, while median prices against September were also down, by 5.6%.
REINZ chief executive Colleen Milne said there was continued strong interest in Otago from Auckland investors seeking higher rental yields.
''First-home buyers are also more active, with fear of rising prices spurring them to action,'' she said.
Demand remained strong in the Central Otago Lakes region, with overall sales up 50% in October, at 173, with a 64% increase in the Central subregion and Queenstown up 35%, on October last year.
Mrs Milne said the drop in the number of Auckland sales in October came from a softening of demand during the past few months and the new IRD and bank account rules introduced at the start of October.
October's result was ''indicative of the market adjustment phase as it adapts to these new requirements,'' she said.
Ten of the 12 regions recorded increased sales volumes compared with September as Central Otago Lakes volumes grew 31%, followed by Southland at 21% and Canterbury-Westland, 15%.
