Queenstown Property Sales, First-Quarter 2012

A review of the first-quarter highlights a mix of results comparing 2011.  As one would expect sales of stand-alone residential dwellings makes up the main body of the market (44% of sales) with the volume of sales having lifted 22% comparing 2011.

Upscale property for sale at premium price points show continued good demand with 14-sales north of $1.m. Although this represents a marginal lift on the 12 sales in 2011, the key difference was last year there were no sales +$2m whereas for 2012 four sales above this price point have been achieved. The knock-on from these sales is noted in the 5.5% increase in the median sell price of dwellings to $602,500.

Finance approved first home buyers entering the market still account for continuing demand of unit/ townhouse inventory with Fernhill/ Sunshine Bay, Central Queenstown, Frankton Rd area and Frankton popular addresses.  Sales at the Queenstown Motor Camp account in-part is responsible for slippage in the median sell price of units as are purchasers intent to negotiate hard on price to stay within approved finance thresholds.

Apartments marketed as ‘Developer Sell Down’ and or Mortgagee Auction continue to garner demand for buyers looking to purchase well and as a consequence sales volumes of apartments are well ahead this year. Conversely the median sell price has eroded to reflect a number of distressed inventory.

Land sales have been achieved at addresses representative of a wide range of geo-locations across the Wakatipu Basin. Arrowtown/ Millbrook Resort and Jack’s Point dominant with 38% of total sales. Three sales south of $150,000 were reflected in the regression of the median sell price comparing 2011. Sales off Ladies Mile with the Threepwood rural lifestyle development were noted.

Rural sales are the star performer with eight properties exchanging ownership year-to-date comparing two last year. Dalefield area and Arthurs Point are represented well in these sales however if price is the indicator a land parcel sale at Wyuna Preserve (Glenorchy) at $5.750m is worthy of mention.

Queenstown Area Sales by Property Type Year-to-date

Report Period: January- March 2012 comparing 2011

□ Report compares aggregated sales for the calendar year 2012 v 2011

□ REINZ reported sales. Private / Developer direct sales not included.

Property Type Jan-March 2012 Jan-March 2011 Variance +/-
Residential Dwellings (RD) 80 sales 66 sales   +21.2%
RD Median Sell Price $602,500 $571,000     +5.5%
Apartments (A) 23 sales 12 sales   +91.6%
A Median Sell Price $435,000 $577,500    -24.6%
Units (U) 27 sales 27 sales No change
U Median Sell Price $320,000 $350,000       -8.5%
Townhouses (TH) 12 sales 4sales    +200 %
TH Median Sell Price $383,700 $588,500     -34.8%
Residential Sections (RS) 29 sales 30 sales       -3.3%
RS Median Sell Price $277,500 $308,500     -10.0%
Rural (R) 8 sales 2 sales     +350%
R Median Sell Price $1,050,000 $1,090,000       -3.6%
Total properties Sales 180 sales 141 sales    +27.6%
Total Value ($) of sales $112,016,856 $83,048,689    +34.8%


Note: Data represents sales reported by REINZ agencies. Private sales not included.

Type March 2012 March 2011
Number of sales Residential Dwellings 29 27
Apartments   9   5
Units   7   9
Townhouses   4
Sections / Vacant 12 11
Rural Lifestyle   2
TOTAL 63 52
Value of sales ($) Dwellings(Excludes Apartments) $23,202,940 $21,136,800
Apartments $3,509,000 $2,617,000
Sections / Vacant $3,937,000 $3,940,500
Rural Lifestyle $2,850,000
TOTAL $33,498,940 $27,694,300
Median Sell Price Dwellings all types $445,000 $515,000
Apartments $412,500 $580,000
Residential Dwellings $551,250 $540,000
Units $380,000 $365,000
Townhouses $383,270
Sections / Vacant $230,000 $183,000
Rural Lifestyle $1,425,000
Median days to Sell Dwellings all types(Includes apartments) 66-days 54-days
Residential Sections 122-days 33-day

Data Source: REINZ. Private sales data not included.

Disclaimer:  While every effort has been made to ensure the information contained herewith is true, no responsibility will be taken for errors or omissions. You should seek your own independent advice from your legal, taxation and financial consultant prior to purchase.

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