The Wanaka property market has had an extremely strong year. The statistics demonstrate the activity in all months but June, significantly eclipsed the market of the previous 6 years.
There is both strong demand and a shortage of listings particularly in the entry to mid-level sections of the market.
Properties selling at auction are often surpassing expectations. Listed properties are receiving multiple offers and selling above asking price. Not that easy for the valuers operating in these market conditions.
At the top end there have been what would have to be considered record sales prices for what is considered the prime of the Wanaka property market with respect to the scope of the facilities and exceptional location and views.
The past year has seen a large number of section sales, which has resulted in a limited number of titled sections available on the market.
Wanaka’s surrounding areas – Albert Town, Luggate and Lake Hawea have also experienced an increase in sales along with value growth.
The national average asking price in December was $522, 930 – in Central Otago, which includes Wanaka the average asking price broke $800 000 for the first time
There is also a current shortage of good quality rental properties, with rental growth evident. Tenants include not only families moving to the region but tradespeople associated with some of the larger building companies taking up accommodation and short term rental accommodation such as for example people cashing in on Air B & B traffic. The supply / demand chain results in inflation of the prices being paid to tenant a property.
Statistics analysing the location of the purchasers of Wanaka property still demonstrate that local buyers are the most significant population represented – 48% of transactions are conducted by buyers located within Wanaka or surrounding areas. The next biggest population of buyers are the Aucklanders at 15%, followed closely by overseas and Otago buyers both at 11% representation.
The total dollar value recorded for real estate sales (Houses & Sections R.E.I.N.Z.) in the Wanaka region for the whole of 2015 came to a staggering NZD $430,000,000. I imagine that this figure would be even higher if the the non-recorded sales were taken into account ie; commercial, developers and some private & lifestyle deals. Just incredible to think that this would possibly make it about ½ billion dollars in property sales in the Wanaka region for the year just gone in 2015.