Houses are up to four-storeys high and have internal courtyards, recessed balconies and roof terraces to provide outdoor living.
These types of developments are popular with young professionals and also older couples whose children have left home.
Wanting a bit more nightlife and less house maintenance, these more mature people have been selling up their family homes in the double grammar zone on the eastern side of the city and moving to Ponsonby or neighbouring Herne Bay.
Ponsonby continues to attract people who enjoy an urban lifestyle, with a humming cafe and bar culture that is as alluring as its proximity to the city.
Bernadette Morrison, of Bayleys, says people love Ponsonby for the lifestyle and the vibrant community that businesses and homeowners have worked hard to create.
She says residents enjoy being able to leave the car at home and walk to local shops and cafes.
"A walk down the tightly packed streets shows villas with a blend of architectural styles, many refurbished with contemporary interiors and wide open back yard spaces.
"The newly completed apartments in Vinegar Lane are a welcome addition to the area and offer the opportunity to live an exciting urban lifestyle."
Because Ponsonby is one of Auckland's older suburbs and most of its housing was built by 1900, the villa is the dominant housing style although there is a smattering of townhouses and apartments that are being built on former commercial or industrial land.
Many of the villas have been preserved and a lot have been extended to create more space and better indoor-outdoor flow.
Most of the development along Ponsonby Rd has seen old shops or houses turned into cafes, bars and restaurants, which means the strip has retained a lot of its character.
Ponsonby is renowned for its community events, although more conservative types weren't happy with the Hero Parade, a colourful nighttime celebration of gay pride down Ponsonby Rd that started in the 1990s and ran most years until it fizzled out in 2001 due to financial difficulties.
The parade has returned to Ponsonby Rd in a much more family-friendly form as part of the Pride Festival, with the Pride Parade held during the day. It will be hitting the streets again next February.
And at Christmas time, the switch is thrown on the Franklin Rd Christmas lights. Homes and businesses along the street are draped with fairy lights and feature all sorts of Christmas-themed illuminations.