The four-bedroom house in Tireti Rd, Titahi Bay, had a rateable value of $350,000.

It should have been an empty room with enough space to swing a cat. Instead it was stifling hot, and packed so full the line went out the door and down the stairs.

Welcome to the frantic world of real estate auctions in Wellington as the deadline looms for a clampdown on lending.

On Thursday a simple four-bedroom house in the Porirua suburb of Titahi Bay, without a garage, drew five times the usual number expected for an auction of such a property.

HARCOURTS/ SUPPLIED The bungalow's lounge. The auction, which surged from $350,00 to $516,000, was all over in minutes.

Harcourts auctioneer Wayne Sutton said the turnout for the sale of the bungalow was a sign of "panic buyers" desperate to use pre-approved loans before stricter minimum deposit requirements kick in.

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Instead of the usual five or six registered bidders, the auction at Harcourts Paremata drew 26 of them.

HARCOURTS/ SUPPLIED The kitchen of the Tireti Rd home. The sellers said they were happy the home had gone to a family, not investors,

Bidding started at the rateable value of $350,000, caught its breath at $420,0000, before it surged up to $510,000. The hammer dropped at $516,000.

It was over in minutes.

In the last stage of the auction, as the bidding flew up in $1000 amounts, a pregnant woman sat with her head in her hands, her lips moving seemingly in prayer.

She was one half of a couple who became the new owners.

They were ushered into a quiet side room to sign on the dotted line for their home.

FIRST HOME FOR RENTERS

They did not wish to be named, but said they were Wellington renters, and this was their first home.

Priced out of the city, they had to look north. They saw the house for the first time on Sunday, fell in love, and bought it four days later.

The husband said he would "drink myself silly tonight", while the wife said it felt like an out-of-body experience.

"I thought my heart was coming out of my mouth."

The sellers were a couple who bought the house five years ago, and would not say how much it cost.

They have a baby and, while the husband was planning a celebratory drink, his wife was planning a quieter night. "I'm breast-feeding, but I may have some sparkling grape juice."

They were happy the home had gone to a family, not investors, and the sale amount was well over what they had hoped for.

This week New Zealand's biggest banks announced changes to tighten lending to investors and home buyers.