An Auckland man has been remanded to a psychiatric hospital after being charged with the murder of a man believed to be his flatmate.

The 38-year-old was given interim name suppression when he appeared in Auckland District Court on Thursday charged with murdering Dean Andrew Clark at his flat in suburban Balmoral on Tuesday night.

Judge Grant Fraser remanded him to the Mason Clinic, a psychiatric hospital, where assessments will be made if he is fit to stand trial, Fairfax reported.

A statement from Auckland District Health Board says it is aware of a serious incident "involving a person known to our mental health services" and that its thoughts were with all involved.

"In line with our established processes we will be undertaking an investigation into the circumstances and are assisting the police with their inquiries."

The accused man will reappear in Auckland District Court in mid-July.

Detective Senior Sergeant Mark McHattie says the accused man was located in Remuera at 10am on Wednesday after police received a call from a concerned relative.

A post-mortem was being carried out on Mr Clark's body and police and forensic scientists were carrying out a scene examination.

Police were talking to friends of both men to gain details of their backgrounds and the circumstances leading up to Mr Clark's death.