QUEENSTOWN MARKET REPORT
QueenstownAreaRealEstateSalesSta�s�csSeptember2022 Sep22 Aug22 Sep21 Aug21 DwellingSales 59 65 64 56 ApartmentSales 15 10 12 15 Sec�onSales 7 2 10 7 Lifestyle(Rural)HomeSales 2 1 3 2 Lifestyle(Rural)LandSales 1 3 4 1 QueenstownAreaSalesTotals 69 71 81 66 MedianResiden�alDwellingPrice $1,200,000 $1,270,000 $1,318,500 $962,500 MedianResiden�alDwellingDaystoSell 52 48 40 35 MedianResiden�alLandDaystoSell 105 233 39 90 MedianApartmentDaystoSell 68 75 63 62 SalesOver$1Million 10 16 16 9 SalesOver$2Million 5 6 5 5 SourceREINZRuralandResiden�alDatabasesandREINZMedianReportR200 Wri�en:26October2022 SourceofdataforthisreportisRealEstateIns�tuteofNewZealand(REINZ)publisheddata,unlessotherwisestated. NotetheApartmentsalescountarealsoincludedinthedwellingsalescount. AsenseofcalmhasreturnedtoQueenstownnowthatourskifieldshaveclosedtheirliftsforthe seasonandthetouristhordesfromnorthandwesthavereturnedhome.Ourwintertourismand hospitalitybusinesseshaveenjoyedthereturnofvisitorsandthemuch-neededrestartto2½years ofverytestingtimes. Thespringequinoxhaspassed,ourdayshavelengthened,andwearedowntotheverylastofthe earlymorningfrosts.Bikes,boats,boots,clubs,andfishingrodsareallbeingdustedoffasour summeractivitiesrampup. OCTOBER2022 Queenstown–What’sHappening
69residentialsalesforQueenstownforthemonthofAugust2022remainsarespectabletallyand isconsistentwithmonthlysalesfor2022.
SalesyeartodateSeptembersuggeststhat2022salesaresome:
� 38%downforthesameperiod2021,
� 13%upcomparedtosameperiod2020,and
� 14%downcomparedtosameperiod2019
The2021comparisonisprobablynotafaircomparisonasthatincludedareleaseof77pre-title salesatHanley’sFarm.Itisfairtosaythat2022,at540salesyeartodate,isasloweryearfor sales,andsurprisinglyiscomparableto2012at549salesforthesameperiod.
Saleshaveslowedbut,interestingly,lowlevelsofpropertiesforsaleremainthekeyinhibiterasto numberofsalesbeingachieved.
Mediandwellingsalepricehasheldsteadyaround$1,250,000forthelastfourmonths,offthe peakof$1,425,000forMay2022.September2022recordedamediandwellingsalepriceof $1,200,000,beingsome9%downfromSeptember2021butequaltoNovember2021.
Takecare;Queenstown’smedian’sdobouncearoundmonthbymonth.Pricesmaybebackalittle, butremainstrongandinlinewithwhatisregardedaspeakofmarket,quarterfour2021. Queenstown'sstrongsalespricesareexplainedbythelowerlevelsofpropertiesavailableforsale inaccordancewithsupplyanddemand.
MediandaystosellaresidentialhomeintheQueenstownareacontinuestocreepupwards; September2022recordingamedianof52daystosellaresidentialhome,comparedwith40days tosellinSeptember2021.Daystosellnowshowingthat2021wasafast-pacedperiod,andtimeto sellisnowcomparablewiththelastsixmonthsof2019.
QueenstownisnotexperiencingthemarketcoolingthatAucklandandWellingtonhavebeen; thosewaitingforacorrectionintheQueenstownmarketmaybedisappointed.Ourexplanationis thatQueenstown-LakesDistrictremainsanincrediblyattractivelocationforallNewZealanders, whetherbasedincountryorabroad,orwhethertoliveherenoworsecureforthefuture. ThisappearstobeanattributeuniquetoQueenstownLakesincurrenteconomicconditions.
QueenstownResidential
provideourAverageAskpricefordwellingsacrosstheQueenstownLakes Region(WanakaandQueenstown).AverageaskpriceforSeptember2022is$1,383,608compared totheregion’srecordaskpriceof$1,456,348forMay2022,butsimilartoNovember2021at $1,314,884whichisnowregardedastheperiodofpeakactivityforthecurrentmarketcycle.
ForthosetiredofthenegativesentimentfromcentralgovernmentandRBNZtakeareadofTony Alexander’s economiccomment forSeptember.Tonycomments: “Now,asnotedsomethreeorsomonthsback,theendgameisunderwayinvolvingthepace ofpricedeclinesslowingandnowsalesstartingtorecoverslightly.Personally,Iwouldn’tget toohunguponaviewthatsaleswillnowtrendupward.Therearetoomanyworryingfactors inplayincludingthewarinEurope,upwardlybiasedinterestrates,negativemigration outflows,highcostoflivingincreases,andtalkofoffshorerecession.ButI’dbepreparedto saythatweareaboutnearthebottomformonthtomonthseasonallyadjustedsaleslevels.”
Salespricesarenotfarfrompeakprices,andthereisvaliddatatosuggestthatthebottomof marketisnear.Asitisimpossibletopickthebottomortopofmarket,otherthanlooking backwardsintime,Iwillsuggestthatforthosewaitingtopurchase,thewindowtofavourable buyinghasopened.
Thestrongrunofhighvaluesalescontinuesandillustratesaveryhealthymarketsegment;ten salesover$2million,withthreeofthosesalesover$4millionandoneover$7million.
Sparsenumbersofnewlistingstomarketandlowinventorylevelscontinuereinforcingthatsupply remainsbehinddemandforQueenstown’smarket.
www.realestate.co.nz
CombinedrealestatesalesforNewZealandcontrastwithQeenstownsales. TheusualspringliftappearssubduedinSeptember,thoughagentsreportmorefirsthomebuyers onthemarket,andincreasedattendanceatopenhomesandauctionsinsomeregions.Whilethe medianpropertypriceshowsaslightincreasenationally,salesactivityisdownandpropertiesare stayingonthemarketlongerwithmediandaystosellhighandinventorylevelselevated,according tothelatestdataandinsightsfromtheRealEstateInstituteofNewZealand(REINZ).
[SeeREINZReport]
JenBaird,ChiefExecutiveatREINZ,comments:
“Weareoperatinginadifferentmarkettotheonewesawlastyear,whichwasfueledbya senseofurgencyasdemandoutweighedsupply.Themarkethasmovedtheotherwayand thescaleshavetippedsothatsupplyoutweighsdemand.Inthismarket,whilewearestill seeingagoodrateofsales,theytendtobeslower.
Thisisevidentinthedipinsalescountscomparedtothesameperiodlastyear—down 10.9%nationally—aswellasthevolumeofavailablestockandthetimepropertiesare stayingonthemarket.
Asthemarketstabilizes,agentsreportthemajorityofvendorsunderstandtheneedto adjusttheirpriceexpectations—however,someareslowtomeetbuyerexpectations.
Anotherfactorimpactingthenationalmedianpriceisthelargernumberofsub-$1million propertiesbeingsold.Elevenofthe16regionsareshowinganincreaseinthesaleof propertiesinthispricebracket.Twolargestregions,AucklandandWellington,aremost significantlyaffected,withanadditional8.6%and8.9%,respectively,ofpropertiessellingin under$1millionpricebandthismonthcomparedtoSeptember2021.
www.realestate.conz showsnationalstocklevels(numberofhomesavailableforsale)as havingamarkedincrease,with107.7%morepropertiesavailableforsaleinAugust2022 comparedtothesamemonthlastyear.AsofAugust2022,realestate.co.nzshows25,441 residentialdwellingsasbeingforsale.”
NewZealandDwellingSales
KEYDATA SUMMARY
MEDIANHOUSEPRICEYEAR-ON-YEAR
Na�onal
NewZealandExAuckland Auckland
$811,000-upfrom$795,000+2.0%year-on-year
$715,000-downfrom$720,000-0.7%year-on-year
$1,045,000-downfrom$1,140,000-8.3%year-on-year
MEDIANHOUSEPRICEMONTH-ON-MONTH
Na�onal
NewZealandExAuckland Auckland
Na�onal
NewZealandExAuckland Auckland
$811,000-upfrom$800,000+1.4%sincelastmonth $715,000-upfrom$700,000+2.1%sincelastmonth $1,045,000-downfrom$1,100,000-5.0%sincelastmonth
4,943-downfrom5,548-10.9%year-on-year
3,310-downfrom4,138-20.0%year-on-year
1,633-upfrom1,410+15.8%year-on-year
Na�onal
NewZealandExAuckland Auckland
Na�onal NewZealandExAuckland Auckland
Na�onal
NewZealandExAuckland Auckland
Na�onal
NewZealandExAuckland Auckland
4,943-downfrom5,018-1.5%sincelastmonth
1,633-upfrom1,518+7.6%sincelastmonth
3,738-downfrom4,066-8.1%year-on-year
3,310-downfrom3,500-5.4%sincelastmonth 3,887-downfrom4,133-6.0%year-on-year
3,533-downfrom3,977-11.2%year-on-year
Up0.2%,up2.1%onSeptember2021
Up1.0%,down0.7%onSeptember2021
Down3.9%,down8.2%onSeptember2021
47-10daysmorethanthesamemonthlastyear
REINZHOUSEPRICEINDEX
MEDIANDAYSTOSELL
49-12daysmorethanthesamemonthlastyear 45-9daysmorethanthesamemonthlastyear
VOLUMESOLDYEAR-ON-YEAR
SEASONALLYADJUSTEDMEDIANHOUSEPRICE VOLUMESOLDMONTH-ON-MONTH
Westpac’sWeeklyCommentaryfor25October2022isheadedup “OCRnowexpectedtopeakat5%”: “TheSeptemberquarterinflationfigureswereugly.Ineverycorneroftheeconomy,prices arecharginghigher.Andeventhoughforecasterswerebracedforastrongnumber,the resultbeatallexpectations.Comingontopofsignsthatdomesticdemandisholdingupin thefaceofinterestratehikestodate,itlooksliketheReserveBankstillhasalotmorework todo.”
ResidentialPropertyManagement
ConnectwithourPropertyManagementTeamtoday
Residentialrentalmarketcontinuesthethemeoflastmonth.Rentalpropertiesarecurrentlyina stateofsignificantundersupply.29propertiesavailableforrentthismonth,comparedtoabout220 availablethistimelastyear,andslightlyaheadofthe20availableinAugust2022.
Askingrentalson www.realestate.co.nz rangefrom$150perweekthroughto$2500perweek.
EconomicComment
SeeWestpacReport
KylieBrown MeganPalmer StephanieDrader
Thepressureisonrents,andweexpectthatstatustoremainsoforquitesometime.Weexpect thatmostpropertyownerswillbewantingtotakeadvantageofcurrentmarketconditionsandseek rentreviewsastheycomedue. HolidayAccommodation HolidayAccommodationcontinuesitsstrongrun;demandremainshigh,andbookingscontinueto flowforasfaroutas12months'time.Tariffsremainstrong. Weareexceptionallypleasedtobeabletostatethatourhousekeepingteamshavebeenableto keepupwithincreasingdemand;ourcontractorshavesuccessfullyrampedupcapabilityfromthe neardormantperiodofborderclosure. Demandforholidayhomesisaheadofthepre-borderclosureperiodandinlinewiththe resurgenceofinternationaltourism;soifyouareconsideringeitherchangingyourcurrentmanager orlettingyourhomeintheholidayaccommodationmarket,wewelcometheopportunitytotalkto youaboutpotentialincomesandourservice.
ProfessionalsAwardWinningTeam ConnectwithourSalesTeamifyouwouldliketohaveaComplimentaryMarketAppraisalforyour property. AiriniEdmunds Louise Fisken AdrianSnow MeschaSoper-Arthur AshleeSimpsonMeganPalmer AdrianSnow PrincipalAgentandDirectorAREINZMNZIS +6434427747 +6434427746 +64212717353 adrian.snow@professionals.nz www.professionals.co.nz/queenstown www.queenstownholiday.nz WeareFisken&AssociatesLtd LicensedREAA2008 Visitusat26ShotoverStreet,Queenstown SendtousPOBox559,Queenstown9348 Likeuson
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