Three properties sold for $75,000 to round out the five cheapest - one in Reporoa and two in Fordlands.
The percentage of houses under $200,000 has also dropped.
LJ Hooker Rotorua principal Malcolm Forsyth said while a $3.4m property was not unheard of in Rotorua, it was "certainly unique" for a property in town and not at the lakes.
"It's a little bit of a sign of things to come. I think that is just indicative of what is happening in the market."
He said people were seeing the value in Rotorua, which had traditionally been conservatively priced.
Mr Forsyth said the Tihiotonga property probably had "stunning views" but showed "it doesn't have to be lakefront to command those prices".
"There's no doubt about it. Prices are on the way up."
Professionals McDowell Real Estate Rotorua principal Steve Lovegrove said the figures around the most expensive houses sold showed the shift in the general perception of the liveability and lifestyle benefits of living in Rotorua.
Mr Lovegrove said while people might be surprised with the high figures, what came as a surprise to him was how low the cheapest properties had sold for.
"I'm surprised at the lowest numbers. I haven't seen anything like those numbers in the 11 months I've been here."
Ross Stanway, chief executive of Realty Services, which operates Bayleys and Eves, said in all cities there were suburbs at different values.
"The interesting thing in Rotorua is you have both ends of the scale."
He said the differently priced properties appealed to different buyers for different reasons.
Mr Stanway said the increase in million-dollar-plus properties being sold reflected the renewed interest in Rotorua.
"Those higher priced properties are on the radar of more people."