Queenstown and surrounds

[propertyfinder]

Tourism is dead in NZ until we can open our borders, that will only happen when we enforce the quarantine and the virus goes away globally.

The chances of that happening in the next 3 months? Unless someone in Queenstown can go 3 months+ with little to no income, they will need to sell.

Better to let tourism die, and keep the borders closed until the Chinese Virus is history on the earth.

Time for NZ to become self-sufficient, yeah! And not do business with corrupt totalitarian regimes like China.

Close the borders, but let everyone in NZ roam free. Those who worked in tourism should change industries and careers. Start manufacturing things that Kiwis need instead of importing them.

[Nick G]

Yay! The '70s. Maybe music will improve too.

Better to let tourism die, and keep the borders closed until the Chinese Virus is history on the earth.

Time for NZ to become self-sufficient, yeah! And not do business with corrupt totalitarian regimes like China.

Close the borders, but let everyone in NZ roam free. Those who worked in tourism should change industries and careers. Start manufacturing things that Kiwis need instead of importing them.

[ermat]

Yay! The '70s. Maybe music will improve too.

It's interesting you should mention the 70's as my only visit to Queenstown was 76 and it was great. Now here I am considering moving there, same old sleepy village !

[jimO]

It's interesting you should mention the 70's as my only visit to Queenstown was 76 and it was great. Now here I am considering moving there, same old sleepy village !

might be a sleepy village today but you couldnt move on the streets a few weeks ago

[driftah]

In light of the tourism shutdown what is the probability of price reductions in this part of the country. I am not over familiar with the area but it looks like the last few years new development has been rampant, and speculative.

To get a feel for the area, why not rent there for a 6-12 months then make a decision? I think by then you'll have a good feel for where prices are likely to head and you can make a call. You probably wont miss out on any bargains as there will always be another bargain just around the corner, I can't see us recovering quickly if there is a dive in the market.

I think Qtown will feel the effects more than most places but by how much is clairvoyant territory. The current data suggests it will be between 5 to 10% It also depends what type of property you are after, there will be types properties that will be affected worse than others within an area. I also think some effects will not be broad across the market, personal circumstances will mean there will be good deals to be had even if the wider market does not move much. Proper due diligence will reveal where these bargains are.

[JBM]

I live 45mins away in cromwell which seen property values increase even more than Qutown percent wise last 4yrs .. just received latest sub-division development $595k for 1000sqm to $320k for 500sqm section close to main roads that run through Cromwell ... pure madness price imho

[jack2016]

hi jbm, will cromwell be affected like QT? ie are the population involved in tourism & construction?

[donna]

QT will survive and we want it to it's our premium destination. I've been watching 'One Lane Bridge' and the scenery is spectacular.

Domestic travel and our extended bubble with OZ (for skiing) will keep it alive and then the 'wealthy' celebrities will move in and claim it as their own as soon as they can buy something they like etc. QT etc will drop but bounce back like the rollercoaster it is in busts and booms.

cheers,

Donna

[Nick G]

Empty sections should start to seriously soften in price.

[JBM]

hi jbm, will cromwell be affected like QT? ie are the population involved in tourism & construction?

Yes not as directly Cromwell has less direct jobs in the sectors most affected(but overall like all of NZ we will see much pain) ..but for sure if Qtn property values crash then will effect other Central Otago townships that have risen on the back of the sky-high values driven our values higher.

As to section falling in price I agree we should see some serious reductions ...

latest local sub-division go to wooingtree.co.nz in the new category

$300k+ for 500sqm $595k 1000sqm sections right beside a main road(Queenstown to Alexandra -Tarras-CHCH etc) with another main road only 200m north (Wanaka)

I play Golf on the nearby course other side of the road and traffic is non-stop during the bulk of the day (many freight trucks feeding Qtn-Wanaka etc)

I purchased two 1000sqm section in the 'Pisa Moorings Area 8kms north of Cromwell mid 2016 right by the lake with Lake Views from second story etc no road noise etc stunning location(where we currently live) paid $205k each(and stupidly sold for not much more 50k higher) .. at the time you could have purchased less desirable sites by the main Cromwell-Wanaka road for around $150k...

ex-covid and with record high NZ household debts to incomes I just don't get current view prices will continue to rise and we need to land bank

[jack2016]

Hey jbm I know exactly where your section is, the last section that was onsold was at 384k but then the reselling just stopped, nobody bought the one that was listed at 405k. They are kind of lake front as there is an undeveloped reserve between house and lake.

Would new section developments just pull the plug and close shop?

[JBM]

Hey jbm I know exactly where your section is, the last section that was onsold was at 384k but then the reselling just stopped, nobody bought the one that was listed at 405k. They are kind of lake front as there is an undeveloped reserve between house and lake.

Would new section developments just pull the plug and close shop?

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

just pure madness but then I'd rather offer 300k for one 850sqm+ than Wooing tree 500sqm rubbish

..I guess councils and all the other parties all want their cut (which only gets larger!!) so they have a min profit margin after RE.agent fees and maybe thats why we won't see $200k decent sections of land until all involved want less (unlikely) or liquidation Jacks point style

Also Qtn property movements lead all of Central Otago---Qtn entry level sections low $400k

[JBM]

bleak times

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 !!

[chook]

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 !!

Thanks for the update JBM, keep them coming..

[JBM]

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12343394

Prime Minister Jacinda Ardern has announced an $85 million Government injection for Queenstown's fragile Covid-hit economy.

Ardern, in Queenstown with Tourism Minister Kelvin Davis, announced the Government would contribute $35 million to the Queenstown Town Centre project and $50m to stage one of the Queenstown Arterials project.

The announcement comes after months of complaining from Queenstown residents and business leaders, who have accused the Government of overlooking the resort town.

The Government said its partnership with Queenstown on the two projects would unlock around $300 million of projects in the township and create about 320 direct jobs.