Lakes property prices double
01 October 2005

Queenstown and Wanaka property values have virtually doubled for the second consecutive three-year period, with the average property in the area now costing $663,000.

A Quotable Value report presented to the Queenstown Lakes District Council (QLDC) yesterday shows land values have doubled since 2002, while capital values have increased 71 per cent.

QLDC mayor Clive Geddes said the revised property valuations presented several challenges for the council.

"The biggest challenge is to stop the real estate industry feeding on this sort of information and encouraging yet more cycles of growth that aren't being driven by the market," he said.

Affordability was another issue.

"Presumably those 2005 figures would include the relatively low valued sites that were sold at Lake Hayes Estate and on a couple of sites at Arthurs Point," he said.

"We are now at a new benchmark from where growth takes place. Six hundred thousand dollars is now the starting point for a house."

Among the sectors of the community to face the largest increases was industrial property, where land value increased by 163%, and in the rural sector, where land value increased by 152%.

AdvertisementAdvertisementQuotable Value regional account manager Brendon Bodger said rural land values were driven by the X-factor of views and high demand.

There was high demand for conversion of farms into rural lifestyle subdivisions and almost 10% of properties in the district were now designated as rural lifestyle.

The average rural lifestyle block had a capital valuation of nearly $1.3 million, he said.

Average house values around the district have almost all doubled, with an average house value in central Queenstown now $908,000.

The average in Frankton is $546,000, in Arrowtown $481,000 and in Wanaka $597,000.

The largest average increase was in Kelvin Heights, where residential house values leapt from $547,000 to $1.02m.

Council accounting manager Ian Stewart said the overall rate take would not change in relation to the new valuations, which come into effect on July 1 next year. They would certainly not double.

Geddes said despite the big property value increases in the Queenstown Lakes District area, people wanting optimum return for their dollar over the past three years would have been better investing in the neighbouring Clutha District.
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