QUEENSTOWN MARKET REPORT
JUNE2023
Wri�en:19th June2023
SourceofdataforthisreportisRealEstateIns�tuteofNewZealand(REINZ)publisheddata,unlessotherwisestated. NotetheApartmentsalescountarealsoincludedinthedwellingsalescount.
Mayisthetraditionalshoulderseasonfortourism,aslowerperiodfortourism-based businessesbutitaffordstimeforbusinessandemployeestorestupandprepareforwhatis expectedtobeaverybusywinterseason.
CruxreportsthatAirlinedatashows600,000expectedoverseasarrivalsthiswinter,90% ofthosefromAustralia.Althoughlargeinnumber,theseexpectedarrivalsareonlyat83%of thoseof2019.
Mayisfamousforstable,clear,blue-skyweatherandhardfrosts;thisyearisaclassic. Thelasttwoweekshavebeennearlyallblue-skydays,plentyofsun,crackingfrosts,and plentyofsubzerotemperaturesmorningandevening–thisreallyisagreattimetobein Queenstown.
QueenstownAreaRealEstateSalesSta�s�csMay2023 May23 Apr23 May22 Apr22 DwellingSales 58 77 62 47 ApartmentSales 10 28 1 4 Sec�onSales 8 1 3 2 Lifestyle(Rural)HomeSales 1 1 0 3 Lifestyle(Rural)LandSales 0 2 0 1 QueenstownAreaSalesTotals 67 81 65 53 MedianResiden�alDwellingPrice $1,297,500 $1,055,125 $1,425,000 $1,150,000 MedianResiden�alDwellingDaystoSell 68 66 55 38 MedianResiden�alLandDaystoSell 49 30 31 18 MedianApartmentDaystoSell 75 89 55 122 SalesOver$2Million 11 14 12 12 SalesOver$3Million 5 9 3 7
SourceREINZRuralandResiden�alDatabasesandREINZMedianReportR200
Queenstown–What’sHappening
QueenstownSales(Summary)
Queenstownareasalesnumbersaresubduedbutremainhealthy.67salesforMay2023, comparedto81forMay2022.Salesfortheyeartodateat316areaheadofthesame period2022at291.
QueenstownAnnualsalesnumbersdidhavea10yearlowfor2022.
Readersshouldnottakelowsalesnumbersasnegativesentiment;netgrowthofthe Queenstownpopulationremainsamongstthehighestinthecountry,listingsofproperty forsaleremainlowcomparedtolongtermlistings,andQueenstown’smedianhousesale pricesremainsstable,nearrecordlevels,andamongstthehighestinNewZealand.
Lowsalesnumbersreflectlowstockturnover,fewhomeownersleavingthedistrict,and ahighcosttochanginghomes.Churnislow.
Askpricedataissuppliedbywww.realestate.co.nz
Residentialpropertiesforsaleremainatrelativelysteadylowlevels,andinventoryhasbeen decreasing.(Inventoryishowlongitwilltaketosellthepropertiescurrentlyavailablefor saleatthecurrentrateofsales–numberedinweekstosell).
Lis�ngandInventorydataissuppliedbywww.realestate.co.nz
MediandaystosellforQueenstownresidentialhomeshasliftedoverthelasttwomonths, suggestingahesitancyfrompurchasersthatisnewtotheQueenstownmarket.
OursummaryoftheQueenstownmarket:salesnumbershavebeenrestrainedforthelast 18monthsbylownumbersofpropertiesavailableforsale.Salesvalueshaveremained highasmeasuredbymedianprice,buthomeslessthan$3.0mhavetypicallyseensale pricesreducedfrompeakmarketduring2022,withperhapsthesub$2.0mhomevalues seeingagreaterreduction.Increasingdaystosellissuggestingthattheeconomic headwindsthathavesubduedthenationalmarketarenowaffectingtheQueenstown market.
Increasinginterestratesisthepredominantfactoratplay.Mortgagesarerollingoverfor renewalandnowbitinganincreasingnumberofmortgageholders.
NationalsalesdataforMay2023issuggestingastabilizingofamarketthathasbeen adjustingforthelast18months.Anincreasingnumberofsalesintheregionsissuggesting areturnofconfidence.
•NationalMedianPriceforMay2023remainsunchangedfromthepreviousmonth, butdown8.2%yearonyear.
•NumberofsalesforMay2023nationallyis30%upfromthepreviousmonth,but0.4% downyearonyear.
•ThenumberofpropertiesavailableforsaleinMay2023is6.8%downfromtheprevious month,butincreased0.9%yearonyear.
TheRealEstateInstituteofNewZealandMay2023Pressreleasestates:
“REINZChiefExecutiveJenBairdsaysasweheadintothewintermonths,weareseeing glimpsesofpositivity,especiallyintheregionsfollowingtheReserveBank’sannouncement ofeasingloan-to-valuerestrictionsandthestabilizingofinterestrates.
It’sclearthatcurrenthighinterestratescombinedwithatighteconomy,arestillinfluencing themarketasbuyerscontinuetoactwithcautionwhileeconomicheadwindsplayout. Thismonthmedianpriceseasedataslowerrateandsalescountsaremarginallydown comparedtoMay2022.Sevenregionsincreasedinsalescounts,anindicatorofreturning marketconfidence.”
[ReadREINZReport]
NationalSales(Summary)
PropertyManagement
ResidentialTenancies
ItiscommonlyacceptedthatQueenstownisenduringaresidentialrentalaccommodation crisis.Howmanypeopleareunabletosecurearentalhomeisnotquantified,butitcould bemeasuredinhundredsofhomesshort.Availabilityofhomesforrentisatrecordlows, runningatlessthan20homesavailableforrentatanyonetime.Wesuggestthatperhaps 50to100homesavailableforrentatanyonetimeshouldbehealthyforQueenstown(after borderclosure,homesavailablepeakedatover200).
Rentshavereachedrecordlevels,althoughtheydoappeartohavecomebackfrompeak rentachievedearly2023andhavestabilized.Churnoftenancieshasbecomeveryslowas tenantsdonotwishtochangeinamarketwheretheywillhavedifficultysecuringanew tenancy.
AvailabilityofrentalhomesisnotlinkedtonumberofhomesinQueenstown,butratherthe numberofhomeownersthathavenointerestinresidentialletting.Thechangesto legislationaroundresidentialinvestmentintaxlawandTenancylawhavehadunintended sideeffects.
HolidayHomeAccommodation
Thebusinessofholidayhomelettingcontinuestoconsolidateafterthelongperiodof borderclosurethrough2020to2022.Tourismnumberscontinuetosteadilygrow,butnot yetbacktopre-borderclosurenumbers.ManyNewZealandersarenowtakingthatlong awaitedoverseastripandnolongertouringathome.
Thesummermonths2023sawgrowthandareturntonormal.ThisMayandJunesawa quietshoulderseasonforholidayhomebookings.Ourbookingsforthewintermonths fromlateJunetoendSeptemberaregenerallyverystrong,althoughnotyetatpre-border closurelevels.
Morehomesentertheholidayaccommodationmarket,whetherreturningfromresidential lettingaftertheborderclosureperiod,orhomesbeingpurchasedforprivateandholiday use.Manysuppliersservicingholidayhomesareclearlyhavingproblemsrampinguptheir abilitytoserviceafterborderclosure.
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