There is a lot of enquiry by investors wanting to know what to buy in Queenstown and Wanaka. Why wouldn’t you think about the investment opportunity!!! Queenstown is seen both nationally and internationally as a boom town. Many investors see this as an opportunity to get their toe in the market, reserving the option of making their dream of relocating to the region one day an option.

Visitor numbers are growing, and more people are looking to relocate for the lifestyle. Accommodation is at a premium on both sides of the hill.

Population and tourism growth projections indicate that there will be a long-term demand for properties in all sectors of the market – commercial, industrial and residential to support the tourism sector growth.

Historically capital gain has averaged out to be strong.

The maturing of the tourism sector has seen less vulnerability to business in the shoulder seasons of April, May and October, November has made investment a more secure option.

Projected capacity for the local population and tourists falls short and is only just coping at the current accommodation levels. This has resulted in a growth in demand with the median house price increasing over 70% in the past 5 years.

Entry prices into the Queenstown property market are second only to Auckland in value. I am working with clients to project manage buying land and building in both Wanaka and Queenstown. This is currently a viable option. Waiting for properties to complete construction before buying is costing an extra $70 to $90, 000.

Investors are also seeing the demand for rental accommodation for families in Queenstown as better options and buying further from the CBD, where land is better contoured and located closer to education and other amenities. The Queenstown Lakes District council predicts that there will be a need for over 9000 extra homes within the next 10 years with this demand increasing further in subsequent years. Rental rates have increased significantly in the past twelve months – it is a pure supply and demand equation.

The lake and mountains are not going away – the people are going to keep coming – I see evidence of some great opportunities for yield with things that come across my desk.