OCTOBER2024
Wri�en:21st October2024
SourceofdataforthisreportisRealEstateIns�tuteofNewZealand(REINZ)publisheddataunlessotherwisestated. NotetheApartmentsalescountarealsoincludedinthedwellingsalescount.
WewrappedupanamazingskiseasononSunday,October13th.Theseasonwas amongstthebest,butnowitistimetoenjoythewarmerdaysandthelastofthespring blossoms.Daylightsavinghasbeenwithusforoverthreeweeks,anditfeelslikesummer isjustaroundthecorner.
Eventhoughweareinbetweenvisitorseasons,Queenstown’svisitornumbershavebeen lookinggood.Nextup,wehavetheQueenstownMarathononNovember16th,2024. Lastyearover11,000runnersregistered;togetherwiththeirsupportersthisistraditionally oneofQueenstown’sbusiestandmostexcitingweekends.
QueenstownSales(Summary)
181residentialsaleswererecordedbytheRealEstateInstituteofNewZealandfor September2024forQueenstownsuburbs.
Iexpectthisisarecordmonthofresidentialsales,certainlyfortheperiodthatIhave recordedsalessinceJanuary2012,thepreviousbestmonthbeing137salesforMarch2021.
Thesalesnumberswereliftedtothisrecordnumberwiththereleaseof119residentiallots atHanley’sFarm.Ifwetookawaytheseextraordinarysales,wewouldhaveotherwise recorded62,whichwouldhavebeenafairmonthoftradingforQueenstownandinline withtheyear-to-date’sactivity.
Mediansalesvalueremainshigh,butnowonasix-monthtrendofdecreasingmonthby month,suggestingthatthenumberofhighervaluesaleshasbeenreducingoverthisperiod.
Mediandaystosellhasbeenincreasingoverthelastfourmonths,indicatingthatithas beentakinglongertosellahome.
Bothnewlistingstomarketandthetotalnumberoflistingstomarkethaveincreased,which isstimulatingmarketactivity.Anecdotally,somepropertyownersarechoosingtosell holidayandinvestmenthomestoreducedebtasinterestratesincreaseandeconomic conditionstighten.
Agentsareexperiencinggoodbuyeractivitysub-medianhousepriceof$1,350,000,andthe lowerpricepropertiesareoftenexperiencingcompetitivepurchasersandstrongprices.The higherpricepropertiesareexperiencingslowerpurchasingactivityanddownwards pressureonsaleprices;thisistypicallythe$2millionpriceandhigher.
Ignoringthe119Hanley’sFarmnewtitlesectionsales,salesnumbersareconsistent, althoughnotatpreviousstronglevels,medianpriceisdecreasing,mediandaystosellis increasing,newlistingstomarketareincreasing,asaretotalstocklevels.Wecanseethat NewZealand'seconomyhasbeenaffectingtherealestatemarket,butwithincreasedstock levelsanddecreasinginterestrates,marketactivitymaywellbestimulatedgoingforward.
SalesnumbersforSeptember2024at181areup:
� Recordmonthlysalesduetotheextraordinarysalesof119newtitlesatHanley’sFarm
� RemovingHanley’sFarmsalestherewere62sales
� 62salesisup17%comparedto53salesforthepreviousmonthofAugust.
Year-to-datesalesSeptember2024of701salesshowayear-on-yearincrease:
� Up26%comparedtoyear-to-datesalesSeptember2023
� Upcomparedto2022and2023.
MediansalepriceofQueenstownresidentialhomesforSeptember2024is$1,325,000andis:
� Down3%comparedtoAugust2024
� Down3%comparedtoSeptember2023
� Down15%comparedtoRecordmedianof$1,560,000inFebruary2024.
MediannumberofdaystosellaresidentialhomeinQueenstownforSeptember2024was 54days:
� Isanincreaseof8daysforAugust2024
� Isadecreaseof9daysfromthesamemonthpreviousyearof63daysforSeptember2023
� Isanincreaseof28days(or107%)fromthelowinJanuary2024of26days
� September2024mediandaystosellisabovethemoving-averageTrendline.
210Newlistingson www.realestate.co.nz forQueenstownandWanaka:
� Up20%from175newlistingsinAugust2024
� Up40%from149newlistingsforthesamemonthpreviousyearSeptember2023.
31WeekInventoryforSeptember2024
� Up5weeksor19%from26weeksforpreviousmonthAugust2024
� Nochangefrom31weekssamemonthpreviousyearSeptember2023.
731Totallistingson www.realestate.co.nz forQueenstownandWanaka:
� Up2%from715fromthepreviousmonthAugust2024
� Up34%from546fromthesamemonthpreviousyearSeptember2023.
JenBairdCEOoftheRealEstateInstituteofNewZealand(REINZ)statesthat,“REINZ September2024figuresshowadditionalsignsofstabilityasspringbeganand confidenceincreasedamongbothvendorsandbuyers.’
AccordingtoBaird,“whilethemarketremainssubdued,thereisanoticeablerisein positivityandconfidencethatthingswillcontinuetoimproveasweapproachtheendof theyear.Despitelingeringchallengessuchasthecostofliving,manybelievethatthe downwardtrendofinterestrateswillleadtoagradualrecoveryaswemoveinto2025.
AftertheReserveBankreducedtheOCRrateby50basispointsto4.75%,themarketis expectedtoseemoreactivityfromthosewhoarereadytobuy,reinforcingtheoptimism inthemarket,andthiswillbereflectedinthecomingmonths’propertyreports”,adds Baird.
[SeeREINZReport]
ThesupplyofrentalpropertiesavailabletorentforQueenstownon www.trademe.co.nz continuesaslowrise.Asof19October2024,thelistedpropertiesavailabletorentfor Queenstownwasat68properties.Havingcomeoffthebackofarentalcrisiswithlittle availabletorentthrough2021to2022,wearenowseeingashiftinsupplyoravailability.
Thereareseveralfactorsatplay:goodnumbersofnewhomesdeliveredtomarketover thelasttwoyears,passingthepeakofbusinessre-hiringaftertheborderclosure,some employeesandcontractorsleavingQueenstownafterthepostborderclosureregrowth period,andthecurrentrecessiveeconomicconditions.Therearealsothenormal seasonaltrendsnowthatoursnowseasonalworkershavedeparted.Supplyisupand rentshaveeasedfrompeakrentsof12monthsago.Ourtenanciesareverystable,with fewtenantswishingtochangetheirtenancy.
