Young local Sung Jin Yeo has set a hot pace in the opening round of the New Zealand PGA Championship with Australia's 2017 winner Jarryd Felton close behind.

Yeo threatened Ryan Fox's 10-under-par 62 course record at Gulf Harbour Country Club in Auckland after he went through the front nine in eight under before further birdies at the 11th and 12th.

But he dropped a shot on 13 and made a double bogey on the par-5 17th to card a nine-under 63.

West Australian Felton, the 2017 winner, was tied second with Queenslander Brett Rankin, two shots behind Yeo.

Aussies Michael Wright, Matias Sanchez and Louis Dobelaar and Kiwis Kit Bittle and Jordan Loof were a further shot back.

"I just can't believe I shoot a big number under par. It's unbelievable," Yeo said.

"It was after the ninth hole that I realised that I was eight-under. I thought, I'm on fire today.

"My driver today was a little bit unstable, pulling and pushing it a bit. But my iron shots and wedge shots were pretty good today. Also my putting.

"I could see the lines on every putt and then I just putted in."

Felton birdied three of his last four holes.

"Played really well. Got what I think I deserved out of it towards the end there. Looking forward to the rest of the week," said Felton.

"Obviously good vibes from 2017 when I won. It's been a while but I'd love to get another win up here."