Queenstown and surrounds

[Chris W]

"Queenstown is feeling the brunt of it with Harcourts saying rent values there have gone down as much as 40 per cent in some cases."

https://www.tvnz.co.nz/one-news/new-...ke-covid-19-v1

[jack2016]

Not looking good for Central Otago/Qtn lakes district property capital wise ...employment IMHO

latest numbers some 1200 properties on the market + record high rental properties for this time of year COVID has really kicked it in the guts ..

population est. 65k for the area

still have some of the Highest property prices in NZ ... Buyers market ....so many tradies in the area + Tourism bleak looking future.I just don't see property construction pulling the area out of a major depression for many years.... more than enough stock

I knew we should have sold long ago !!

But there are some madness going on. In Wanaka someone just sold a section in June/July for 120k higher than what they bought for in Oct 2019. I understand that might not be the trend, but there are one or two buyers out there ...

[QTPat]

But there are some madness going on. In Wanaka someone just sold a section in June/July for 120k higher than what they bought for in Oct 2019. I understand that might not be the trend, but there are one or two buyers out there ...

I am a valuer in town and sought after properties are selling very well, over and above previous highs. Seems to be high levels of overseas and out of town purchasers.

The entry level seems to be effected though with more stock, lower rentals levels resulting in investors not being as active. Tougher finance requirements for first home buyers/buyers in general is also having an effect.

[jack2016]

Thanks that confirms what's going on. But how long can you have high value stock selling higher and entry level stock selling lower?

[QTPat]

Anyone?s guess at this stage!

With all that is going on atm, the next few weeks/months will be interesting to watch and see how it plays out.

[jack2016]

Well how I understand it they can spend a good amount of capital on purchasing bare land planning and resource consents advertising costs etc and really work on the principal of selling enough pre-sales to help with bank funding the high costs of making legal titled fully serviced sections- roading,power etc

Just look at those Falcon estate sections opposite the other many sections with new homes in PISA-- https://www.realestate.co.nz/3545159...-lane-cromwell

last time I talked to the agent months ago he hadn't sold one!! and they were listed just over a year ago $325k ea

you won't believe it but a few sections in pisa have sold ...

[JBM]

QT surrounds

you won't believe it but a few sections in pisa have sold ...

Yes quite unbelievable how well local cromwell Property is going in talking with local RE agents they are getting more buyer inquiries than pre covid !!! Prices continue to move higher ..listings dropping.. many Aucklanders hounding RE agents for new listings ... think the top of the market might well come this summer ... tempted to list family home ...if we could net price Homes gives us ( 400k higher than we paid 2016)

[chook]

Hey JBM or anyone who knows the Queenstown/Wanaka market, whats happening down there at the moment? there were some crazy gains 2019 - 2021.

[propertyfinder]

I'd be interested to know what's happened in Queenstown since this since this post was started at the beginning of the scamdemic.

What has happened to the tourism industry since overseas visitors were forbidden from entering NZ more than 2 years ago? How many tourist businesses in the Queenstown area have closed down? What happened to all the staff employed by them?

[chook]

I was down in Wanaka last year in the peak and all the new subdivisions were fully sold out and mostly built, mainly around the $1.5 - $2mil mark per house, one local told me they were mainly Aucklanders. Ok if they were cashed up which many of them would have been but there will be a scattering of punters who over extended themselves who will now be in a deep pile of crap. I know generally at this stage of the cycle Queenstown usually tanks about 20%, I can sense a far bigger drop happening this time around due to the insane prices.

[JBM]

Yes Qutown Wanaka and even over in Cromwell Alex the property markets defy gravity ...I see Westpac 5yr rate 6.99%...was 2.99% a year ago on special...
Queenstown entry price $770k for a 2bd unit in COLD hole that will see ZERO sun during winter.... going off the 6.99% rate a buyer would need to have 153k deposit + pay $1004pw over 25yrs + insurance + rates + bodycorp+power ... and its not located near the CBD so transport to work etc

I think the market will break ...its only a matter of time till the ongoing higher rates break it ... worst than GFC ..