Climate change hasn’t impacted the Queenstown property market. It’s more of the same; a drought on listings and a flood of buyers, pushing up the prices.
The property market from a national perspective saw it as the headline news yesterday, with national January sales volumes being reported as the highest in 4 years. Queenstown bucked this trend with a drop of 22 % in comparison to the same time last year.
The median sale price has increased on a monthly basis and is now $1,055,000 for Queenstown, up from $961,000 a year ago.
The market is being buoyed by low interest rates and a shortage of listings.
Wanaka and Queenstown real estate has increasingly been invested in by Australian buyers but this has escalated over the past few years and recently our business has had a surge in buyers. This could be climate and politically driven. Many of my Australian buyers have lived in Sydney or Melbourne for their entire working life but are not necessarily Australian by birth.
A positive correction in the Auckland market often sees a resurgence in the number of buyers into our market – young families relocating to make the most of our lifestyle. Believe it or not Auckland is easier to commute to for a day’s work from Queenstown than Christchurch is. The cost, reliability of the jets and number of flight options outweighs those to Christchurch.
In this type of market it is essential to be first out of the blocks when any property opportunity comes onto our radar. Many properties sell off market or within hours of being listed. Being local with an ear to the ground opens up many more doors than waiting for the daily inbox feed. By then it is often late or you are in a multi offer situation. This scenario feeds the whole price inflation scenario.
Market predictions are for more of the same in 2020 – strong population growth, a growing economy and low interest rates. Factors that could have an impact are the uncertainties that come in election year and any adjustments that may be made to the LVR’s by the Reserve Bank.
If you’re getting frustrated with the Queenstown property market do get in touch – in this market a lost opportunity can be more than a touch expensive.