If you have been exploring the Arrowtown and Queenstown real estate over recent years you will know that it’s in a stable phase and should currently even be described as a buyers market.
Signs of the slowing Queenstown property market are evident in:
- The increased number of days to sell
- The number of properties being passed in at auction
- The drop in the number of offers on a property.
As far as Queenstown real estate trends go this is the slowest period to be observed since the GFC.
Queenstown real estate trends – positive for buyers
Queenstown and Arrowtown home buyers are linked into the impact of the global economic climate more than elsewhere in NZ.
The impact of the national and Australian economy has a significant impact on Queenstown real estate trends. A major factor influencing their buying power are the exchange rate, plus the uncertainties surrounding the elections in the United States and wider global stability.
Current economic conditions in New Zealand are difficult and there are no imminent signs of things improving anytime soon. High interest rates continue to bite, inflation remains stubbornly high, business confidence is low and the cost of living is high. Added to this is a surplus of real estate listings which are helping to maintain the downward pressure and keep the control in the buyers hands.
Queenstown and Arrowtown real estate opportunities are ripe for the picking at the moment.
A great time to be a buyer
Speaking with local registered valuers gives the sentiment of a market “bumping along in some sectors but dead in others”, “up and down” with “buyers being extra cautious demanding extensive due diligence and looking for any excuse to push down the price”.
Yes – as a buyer I can totally concur with those conversations – they’re bang-on reflecting exactly how we are responding when guiding purchasing strategies.
That’s not to say that there is exceptional buying for all properties – certain real estate in the Arrowtown and Queenstown real estate markets always sells quickly and the negotiation phase is always testing. These are the properties with great aspects and superb location.
Many of these never actually make it onto the market and sell as discreet listings, especially when considering Arrowtown property investment.
Great Arrowtown real estate opportunities take perseverance to find
Consistent demand from international & domestic buyers for both holiday homes and permanent residences have impacted the Arrowtown real estate opportunities.
The vibrancy of the village, its unique historical charm, strong sense of community and lifestyle appeal boosts Arrowtown property demand. This combined with the limitations of good stock, strict building regulations and limited new developments make property searching in Arrowtown and its surrounds a rewarding activity.
Queenstown, being closer to amenities and regarded as an international resort, sees its prices remain resilient in some sectors. Entry level buyers into the Queenstown real estate market are still finding it extremely challenging to get into, which further exacerbates the rental housing challenges impacting the region.
The single thing that would impact Queenstown housing market in 2024 more than anything else, is that is on the horizon is the impact the current government could have on prices, should the foreign buyer ban be adjusted – and there have been murmurings of this. Thoughts are divided with some seeing the removal being impossible under the current coalition with others predicting a lifting of the required purchase limits above the $2 million electioneering pledge to above $6M and even as high as $10M.
There are some great buys out there in some areas more so than others
New subdivisions near the base of the Remarkables – Jacks Point and Hanleys Farm – have become increasingly popular since traffic has improved with the bridge opening.The community appeal, being slightly removed from the bustle of Queenstown and proximity to activities and schools makes them popular. There’s a lot of choice being marketed in there at the moment – making for some good buying.
Investment opportunities exist for modern housing developments to cater for the working population of our resort town. Handy locations with transport amenities will always be sought after if they are cleverly designed, especially with a sustainable focus.
The Queenstown market hasn’t seen investors re-enter the market in response to the reintroduction of the 80% interest deductibility for landlords.
Less absolute box tickers than you think – we don’t sell real estate
Timing of being active in the market is not always necessarily about price though.
Some properties (and to be honest, less than you would expect) are absolute box tickers and will always be popular. Getting the RIGHT property is always in my eyes the most important factor.
You never want to overpay, but often missing out is the worse side of the equation to be on. A property with a fantastic aspect, superlative floor plan and prime location will always be worth grabbing. There will always be demand for these gems.
That’s where being in the know, swift on your feet and having the right tools in the tool box is imperative.