QUEENSTOWN MARKET REPORT
SEPTEMBER2024
Wri�en:23rd September2024
SourceofdataforthisreportisRealEstateIns�tuteofNewZealand(REINZ)publisheddataunlessotherwisestated. NotetheApartmentsalescountarealsoincludedinthedwellingsalescount.
Itisstillaboutthesnow.Thecommercialskiseasonmaynowbeslowingasourvisitor numbersdecrease,butthesnowhasarrivedbigtimeoverthelasttwoweekswithsnow seemingtofalleveryday.
Acrossourfourlocalskifields,snowbasesof1mto2marereportedwithfreshsnowfalls inexcessof1moverthelasttwoweeks.OneHeli-skioperatorreportingover2moffresh snowover10daysontheirwesternslopes.Snowconditionshaveneverbeenbetter.
Ifyouareintosnowsports,nowisthetimetobeouttheredoingit.CoronetPeakand TrebleConearescheduledtocloseskioperationson29SeptemberwithThe RemarkablesandCardronascheduledtocloseskioperationson13October.
QueenstownSales(Summary)
53residentialsaleswererecordedbytheRealEstateInstituteofNewZealandforAugust 2024.
Monthlysalesnumbersaredownfromthepreviousmonthandsamemonthpreviousyear, August2023,indicatingaslowdowninactivity,althoughcontrastingwithtotalsalesfor the8monthsyear-to-datewhichhasbeenonanincreasingtrendforthelastthreeyears. Thetotalsalesyeartodatemaybeskewedwiththelargereleasesoflandsalesat Hanley’sFarm.
MediansalepriceofQueenstownresidentialrealestateishighandstableat$1,365,000, withasmalldecreasingtrendfromtherecordhighof$1,560,000inFebruary2024.
MediandaystosellresidentialhomesinQueenstownisat46days,whichisnowa7monthperiodofstablemediandaystosell.
NewlistingstotheQueenstownandWanakamarketareup4%fromthepreviousmonth ofJuly2024,butasignificant45%upfromthesamemonthpreviousyearAugust2023.
TotallistingstotheQueenstownandWanakamarkethaveshownaminorincreasefrom thepreviousmonthJuly2024,butasignificant39%increasefrom514to715forthesame monthpreviousyear,August2023.August2023totallistingswasinsideanextended periodoflowlistingnumbers,butfromJanuary2024wehaveseenaperiodofincreased listingstomarketwhichparallelstheincreasingdifficulteconomicconditions.
Ingeneral,numbersofpropertiesforsalehaveincreasedsignificantlyoverthelast12 months.Halfofthesalesactivityoccursbelowthemediansalepriceof$1,365,000.
Anecdotally,agentsareexperiencinggoodbuyeractivitysubmedianhousepriceandthe lowerpricepropertiesareoftenexperiencingcompetitivepurchasersandstrongprices. Thehigherpricepropertiesareexperiencingslowerpurchasingactivityanddownwards pressureonsaleprices;thisistypicallythe$2mpriceandhigher.Jack’sPointisfeeling theslowdownwithsome25propertiescurrentlyforsalewithonly20propertieshaving soldinthe12monthstoAugust2024.
SalesnumbersforAugust2024at53aredown:
� Down37%comparedtosameperiodpreviousyear,August202387sales
� Down29%comparedtopreviousmonth,July2024.
Year-to-datesalesAugust2024of520salesshowayear-on-yearimprovement:
� Up5%comparedtoyear-to-dateAugust2023of497
� Upcomparedtoyear-to-dateAugust2022of471.
MediansalepriceofQueenstownresidentialhomesforAugust2024is$1,365,000and stable:
� Althoughdecreasingfromtherecordhighof$1,560,000
� Down1%comparedtosamemonthpreviousyearAugust2023at$1,375,500
� Down1%comparedtopreviousmonthJuly2024at$1,380,000
� Augustmedianis$14,000belowthemovingaverageTrendlinefortheprevious12months.
MediannumberofdaystosellaresidentialhomeinQueenstownisat46days:
� SameaspreviousmonthJuly2024at46days
� AugustmediandaystosellisonthemovingaverageTrendline
� Hasincreasedorslowed8daysfrom38dayssamemonthpreviousyearAugust2023
� Is1daygreaterthanthemovingaverageTrendlinefortheprevious12months.
175Newlistingson www.realestate.co.nz forQueenstownandWanaka:
� Up4%from168newlistingsforthepreviousmonthofJuly2024
� Up45%from117newlistingsforthesamemonthpreviousyearAugust2023.
26WeekInventoryforAugust2024
� Down9weeksor26%from35weeksforpreviousmonthJuly2024
� Down2weeksor7%from28-weeksamemonthpreviousyearAugust2023.
715Totallistingson www.realestate.co.nz forQueenstownandWanaka:
� Up2%from701fromthepreviousmonthJuly2024
� Up39%from514fromthesamemonthpreviousyearAugust2023.
TheRealEstateInstituteofNewZealand(REINZ)August2024figuresshowsignsof increasedconfidence,optimismandactivitycomparedtothepreviousyear.Whilethe overallsalesvolumeslightlydeclined,severalregionsreportednotableincreasesin activity,andyear-on-yearlistingnumberscontinuetorise.
REINZChiefExecutiveJenBairdsaidAugustprovidedasenseofconfidenceand positivitytothepropertymarket.“Augustdatashowsalevelofstabilityinthemarket. Despiteamarginal0.6%(or$5,000)decreaseinnationalmedianpricesyear-on-year, we’reseeingpricesholdsteadywitha1.3%increasemonth-on-month.’ [REINZReport]
KylieBrown MeganPalmer StephanieDrader
Thesupplyofrentalpropertiesavailabletorenton www.trademe.co.nz continuesaslow rise.Asof20September2024,availablepropertiestorentwasat63properties.Coming offthebackofarentalcrisisandnothingavailabletorentthrough2021to2022,weare seeingashiftinsupplyoravailability.
Thereareseveralfactorsatplay:goodnumbersofnewhomesdeliveredtomarketover thelasttwoyears,passingthepeakofbusinessre-hiringaftertheborderclosure,some employeesandcontractorsleavingQueenstownafterthepostborderclosureregrowth period,andthecurrentrecessiveeconomicconditions.Therearealsothenormal seasonaltrendsnowthatoursnowseasonalworkersbegintheirdeparture.
Supplyisupandrentalshaveeasedfrompeakrentsof12monthsago.Ourtenanciesare verystable,withfewtenantswishingtochangetheirtenancy.
HolidayHomeAccommodation
Ourwinterseasonvisitorshaveslowedasthesnowsportsseasondrawstoaclose.For mostoperatingintheaccommodationandhospitalityindustries,businesslevelsare reducedfromlastyear’swinterseasonactivitybysome20%.Somepropertiesexperienced lessthanexpectedoccupancy,butothersenjoyedstrongoccupancy,likepreviousyears.
Therewasclearlyincreasedsupplyinthemarketplace,andwithsometariffsbecoming competitive.Itdoesappearthatourpropertiesthathavebeenoperatingforlongerperiods, whichhavebuiltstrongreviewsandrepeatcustomers,havecontinuedtodowell. Interestingly,oursmallandlessexpensiveapartmentshavealsobeingexperiencinggood occupancies.
Itishardtogiveafact-basedexplanationastowhyoccupancylevelsaredecreased,but anecdotallyitappearsasthoughmanyvisitorswerewaitingforsnowthatdidn’tcome beforetheybooked,theattractionsofanorthernhemispheresummerweregreaterthan Queenstown’s,andprobablythesinglebiggestfactorisNewZealand’seconomic slowdownprecludingaQueenstownholiday.
Contactour award-winningmanagementteam tolearnmoreabouthowyoucan generateincomefromyourholidayhome.
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FindoutwhyLocalsLoveusingtheProfessionalsTeam forsellingtheirhome.
Ourawardwinningteamisreadytohelpyouwithall yourrealestateneeds. Talkwithusaboutyourbestmarketingandsellingoptionsforyourhome today.
FINDOUTMORE
AdrianSnow PrincipalAgentandDirectorAREINZMNZIS
+6434427747
+6434427746 +64212717353 adrian.snow@professionals.nz www.professionals.co.nz/queenstown www.queenstownholiday.nz
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