QUEENSTOWN MARKET REPORT
SEPTEMBER2023
SourceREINZRuralandResiden�alDatabasesandREINZMedianReportR200
Wri�en:14th September2023
SourceofdataforthisreportisRealEstateIns�tuteofNewZealand(REINZ)publisheddata,unlessotherwisestated. NotetheApartmentsalescountarealsoincludedinthedwellingsalescount.
Queenstown–What’sHappening
Thesnowsportsseasonisnowinitsfinalphasewithonlyafewweekslefttoendof season.Thereisahealthysnowbaseandthecrowdshavegone,makingforexcellent springskiingconditions.
Theseasonhasbeenbusyfortheskifieldsandforthebusinessthatsupportwinter tourism.Winterbusinessactivitywasclearlybacktopre-Covidlevelswithmany businessesrunningatcapacity.
Septemberisthefirstmonthofspring,thedaysarenowlonger,thetemperaturesare warmer,andthespringflowersandblossomarenowoutondisplay,itisabeautifultimeof year.
QueenstownAreaRealEstateSalesSta�s�csAugust2023 Aug23 Jul23 Aug22 Jul22 DwellingSales 35 38 65 31 ApartmentSales 5 3 10 2 Sec�onSales 46 7 2 8 Lifestyle(Rural)HomeSales 4 0 1 1 Lifestyle(Rural)LandSales 2 0 3 0 QueenstownAreaSalesTotals 87 45 71 40 MedianResiden�alDwellingPrice $1,376,500 $1,400,000 $1,270,000 $1,257,000 MedianResiden�alDwellingDaystoSell 38 43 48 42 MedianResiden�alLandDaystoSell 223 36 233 11 MedianApartmentDaystoSell 107 36 75 56 SalesOver$2Million 13 5 16 7 SalesOver$3Million 4 5 6 4
QueenstownSales(Summary)
QueenstownSalesoverJune,JulyandAugusthavebeensubduedat49,45,49*sales respectively.
Thesesalesnumbersreflectthenormalseasonalslowdownoverthewintermonths.
*RecordedsalesforresidentialhomesandlandforAugust2023are87sales,however38ofthosesaleswerenew titlereleaseHanley’sFarmlots;removingthisbatchof38lots,leaves49normalsalesforAugust.Thecontractsfor Hanley’sFarmlotswillhavebeenwrittenoveraperiodofuptooneyear.
Theyeartodate,eightmonthstoendofAugust,hasdelivered497salesforQueenstown comparedtoaslightlyless471salesforthesameperiodin2022.
Readersshouldnottakelowersalesnumbersasnegativesentiment;netgrowthof Queenstownpopulationremainsamongstthehighestinthecountry,listingsofproperty forsaleremainlowcomparedtolongtermlistingnumbers,andQueenstown’smedian housepriceisstableandatrecordlevels.
Lowersalesnumbersremainmorereflectiveoflowavailabilityofpropertyforsale. Propertiescurrentlyonthemarketaretypicallyreceivinggoodinterestandsomevery goodsalespricesarebeingachieved,especiallyinthelowerquartileofhousevalues.
Numberofnewlistingstomarketremainlow,butinlinewiththewinterseason.Inventory, orthetimerequiredtosellavailablelistingsattoday’srateofsales,hasincreased,butI expectthistobeaseasonalblipratherthanamarkettrend.
Mediansellpricereturnstorecordlevels,andaverageaskpricehasbeenmatchingthat growth.
QueenstownLakesDistricthouseaskpricehasshowngrowthfromJanuary2021compared toadeclineofNationalhouseaskprice,reinforcingoursentimentthattheQueenstown markethasbeenandcontinuestobeinastateofreducedsupply.
OursummaryoftheQueenstownmarketisthatsalesforthelast18monthshavebeen constrainedbylowernumbersofhomesavailableforsale,ratherthansubduedmarket sentimentasexperiencedelsewhereinNewZealand.Populationgrowthisprobablythe singlebiggestfactorsupportingdemandforQueenstown.
2023hasshownincrediblerentgrowthastherentalmarketleftbehindtheeffectsofa collapseindemandovertheborderclosureperiod.Rentsarenowatrecordlevelswhichis encouraginginvestorbuyersbackintothemarketaddingtothedemandonpropertiesfor sale.AselsewhereinNewZealand,thefirsthomebuyersarethesinglebiggest demographicasstrongemploymentconditionsandreducedcompetitionfavortheirposition.
“Election-itis”isapparentintheQueenstownmarketaswemeetvendorsholdingbackfrom listinguntilaftertheelectionwhenitisperceivedthatmorefavorablesellingconditionswill prevail.Withtheelectiondecidedandthefast-approachingSummerseason,weexpectto seebothanincreaseoflistingsandanincreaseinbuyingactivityfromtheendofOctober.
MediandaystosellclimbedacrossAprilandMaybutappearstohavereturnedtowhat appearstobemorenormalforQueenstown.
Interestratescontinuetoincreaseandareclearlyaffectingmortgageholdersas mortgagesnowrollovertonewinterestrates.
Salesnumbersremainsubduedwhencomparedtotheperiodofstimulatedmarket conditionsof2021,howevernationalsalesactivityappearstobestabilizingand recuperatingfromthelowperiodacrossthelasthalfof2022.
Highlights
� NationalmedianpriceforAugust2023isat$767,000,down4.1%comparedtoAug 2022anddown0.3%comparedtoJuly2023.Thedecreaseinmedianiscontinuing toease.
� TheNationalsalescountforAugust2023is5509,19.2%upcomparedtoAugust 2022.
� Nationally,listingsdecreasedby17.6%from25,441listingsinAugust2022to22,750 listingsinAugust2023.
REINZChiefExecutiveOfficerstates:
“August2023figuresshowcontinuedoptimismandfurtheractivityintheproperty market.Whilelistingnumbersremainlight,theyareuponJulyandwithsalescounts havingincreasedthisshowssomelatewinterconfidence.
“Higherinterestratesandongoingcostoflivingpressurescontinuetoimpactthemarket aheadoftheloomingelection.Thereisasenseacrossthecountrythatthemarkethas seenthebottombothintermsofpricesandsalesvolumes,butweareallwaitingto seehowlongitwilltaketoseegrowthreemerge.” [ReadREINZReport]
NationalSales(Summary)
PropertyManagement
ResidentialTenancies
Queenstown’sstatusofaccommodationcrisiscontinues.Previouslyunimaginablelow levelsofhomesavailableforrentcontinue;today’sTradeMesearchdisplayedonly14 propertiescurrentlyadvertisedforrent.
Renthasbeenthroughadramaticperiodofgrowthoverthelast12monthsaslocal businesswereabletoreturntonormalbusinessactivitypostborderclosure.Pressureon rentsremainsupwards,althoughrateofgrowthhasdramaticallyreducedasthe affordabilityceilingisreached.Churnoftenancieshasalmostendedastenantsdonotrisk theprospectofbeingunsuccessfulatfindinganewtenancy.
Rentsfor4-bedmodernhomesinresidentialsuburbsarepassingthroughthe$1200per weekmark.
Withtheincreaseinrents,weareexperiencingthereturnoftheresidentialinvestor purchaser.Hopefullythisbuyingactivitywilladdtothenumberofhomesavailabletorent.
HolidayHomeAccommodation
Thewintermonthshaveyieldedstrongreservationnumberswithmostpropertiesrunning nearcapacityforpossibleoccupancy.StrongreservationscontinuethroughSeptember andNovember.TheSummermonthsfromDecemberonwardsarefillingfast.
ThislevelofbookingshasnotseenthenormalOctober-Novemberslowdown.Our shoulderseasonmaynolongerexist.
Thesupplychainforservicingourhomeshasbeenunderstrainattimesthroughthe wintermonthsasmanybusinessesarestillrebuildingfromtheperiodofborderclosures.
Thedemandfromthemarketplaceforholidayhomesisgreaterthanithasbeen previously,andthereisclearopportunityforanyhomeownerconsideringlettingtheir homeontheHolidaymarket.Anyoneconsideringholidayhomeuse,pleasereachoutto either Kylie or Luise tolearnaboutthebusinessmodelandhowweretainuseforthe owners. ClickHeretobookyour
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