Property market moving into an expansion phase

17:00, May 22 2014

After several years of post-global financial crisis recovery, Queenstown's property market is moving back into an expansion phase.

The annual Colliers International market review and outlook for 2014 was released yesterday.

Colliers registered valuer Andrew Hyndman said the residential market picked up around September last year with between 70 and 80 residential house sales a month.

There was not likely to be any shortage in future with the company estimating there were about 750 titled sections available to be built on (not all available for sale), another 650 awaiting title and the potential for a further 3500.

"That's 4900 sections in the Wakatipu Basin available for development.

The strongest sales of sections had been at Jacks Point (100 in the last year) and Shotover Country (180).


The construction sector was also strong with houses and a new primary school and secondary school to be built.

In the commercial sector there were several large projects under way including the new Skyline building in central Queenstown, the Five Mile retail development, a replacement for the World Bar building destroyed by fire a year ago and a new building planned for the former AMI building in Shotover St.

Frankton was identified as the key growth area for the future.

Developments included ongoing work at the Remarkables Park Town Centre, Five Mile, Shotover Park near the industrial area and ongoing expansion at Queenstown International Airport.

"Overall the growth is going to come out of the Frankton area - the future strategic hub for Queenstown," Hyndman said.

Tourism specialist Barry Robertson said annual visitor numbers had now reached about two million per year with a tourist spend of $1.2 billion.

Major tourism developments were under way with Real Journeys purchase of Cardrona Ski Area for more than $40 million and land and facilities at Walter Peak for $5m.

Southern Discoveries had started new ventures on Lake Wakatipu, NZSki was investing $40m in the Remarkables Ski Field and the new $30m Aro Ha wellness retreat near Glenorchy opened earlier this year.

"We will see demand for tourism property grow," he said.

There was a lack of central sites for a projected increased demand for visitor accommodation.

"The District Plan may need to look at specific hotel zoning for Queenstown."



Queenstown in the last 12 months:

Resident population: 28,000

Number of tourists: 2 million

Average day peak population: 57,000

Tourist spend per year: $1.2 billion

Airport passenger growth: 40 per cent since 2009

Median house price: $638,500

Median section price: $240,000

Highest price paid for a lifestyle property: $4.75m (for a 2002 Dalefield residence including accommodation wings, four bedrooms and three bathrooms) 

The Southland Times