August property sales for the Queenstown area were the lowest since January but Real Estate Institute of New Zealand Queenstown spokesman Kelvin Collins said it was ”hard to read too much into one month’s reduced volume. It’s been steady growth over the last couple of years. It’s still relatively balanced, neither favouring vendors nor buyers. There’s a slight shortage of property. If we don’t get an influx of property in the spring there’s a shortage coming into summer. We are into a growth phase, there’s no doubt about that. The strongest demand has continued to be from first-home buyers, although this sector is becoming less discerning on quality and purchasing on affordability.”
New Reserve Bank restrictions are imminent and take effect on October 1st, limiting the number of low-deposit loans banks can make. The changes mean many buyers will need a minimum deposit of 20 per cent before obtaining a home loan, with several banks signalling those with lower deposits will face higher interest rates.
History has some relevance here as back in the 70s, 80s people had to have saved a lot higher deposits than they do now, yet still purchased homes. Some buyers may need to ask parents for funding to top up to the 20 per cent deposit threshold. Mortgage lenders would be looking for borrowers with no outstanding debt or hire-purchase payments, and a history of saving.
Those in Queenstown would need $323 a week to reach the deposit for the median house price of $420,000 in five years. As a consequence first-time buyers in Queenstown were starting to be more realistic about the type, scale, location and age of properties they could afford as more people choose to settle and relocate to one of New Zealand’s fastest-growing centres. This lift is evidenced with buyers in the $450k-$1m price band making up 69% of all dwelling sales (apartments excluded) for the 2013 year compared to 48% Y.T.D 2012. Price sensitive buyers tend to opt for unit type property opposed to freestanding homes and with thirteen sales in August ranging $345,000-$455,000 time is of the essence when buyers identify the right opportunity. With the last of brand new units nearing completion on Goldrush Way and under development by Woodlot Properties it’s a tough ask to identify where new stock is going to come from rolling into the first half of 2014.
Residential section sales continue on a positive trend line with both increased sales volumes combined with a modest lift in median sell prices. The ‘group home builders’ reputedly are busy with forward build contracts short and medium term with plenty of concrete pads and framing visible right across the Wakatipu Basin.
REINZ Reported sales by price of Queenstown Homes, Units and Townhouses.
Year-to-date January –August 2013 comparing 2012.
| Price Band | % of Total Sales 2013 | % of Total Sales 2012 |
| <$350,000 | 12.6% | 16.9% |
| $351,000 – $450,000 | 17.9% | 20.5% |
| $451,000 – $650,000 | 38.4% | 31.5% |
| $651,000 – $999,000 | 20.8% | 16.5% |
| $1.0m – $2.0m | 7.8% | 9.8% |
| $2.0m plus | 2.5% | 4.8% |
Queenstown Area Sales by Property Type Year-to-date
Report Period: January– August 2013 comparing 2012.
□ Report compares aggregated sales for the calendar year 2013 v 2012
□ REINZ reported sales. Private / Developer direct sales not included.
| Property Type | Jan-Aug 2013 | Jan-Aug 2012 | Variance +/- |
| Residential Dwellings (RD) | 257 sales | 222 sales | +15.7% |
| RD Median Sell Price | $605,000 | $612,500 | -1.2% |
| Apartments (A) | 57 sales | 73 sales | -21.9% |
| A Median Sell Price | $400,000 | $395,000 | +1.2% |
| Units (U) | 73 sales | 63 sales | +15.8% |
| U Median Sell Price | $385,000 | $328,000 | +17.3% |
| Townhouses (TH) | 27 sales | 23 sales | +17.3% |
| TH Median Sell Price | $420,000 | $399,000 | +5.2% |
| Residential Sections (RS) | 113 sales | 96 sales | +17.7% |
| RS Median Sell Price | $250,000 | $239,500 | +4.3% |
| Rural (R) | 22 sales | 18 sales | +22.2% |
| R Median Sell Price | $800,000 | $922,500 | -13.2% |
| Total properties Sales | 549 sales | 495 sales | +10.9% |
| Total Value ($) of sales | $320,631,216 | $304,467,266 | +5.3% |
Queenstown Area Sales by Property Type Year-to-date
QUEENSTOWN AREA PROPERTY SALES: August 2013 v July 2012
Note: Data represents sales reported by REINZ agencies. Private sales not included.
| Type | August 2013 | July 2013 | August 2012 | |
| Number of sales | Residential Dwellings | 18 | 32 | 35 |
| Apartments | 8 | 7 | 4 | |
| Units | 14 | 5 | 10 | |
| Townhouses | 2 | 5 | 2 | |
| Sections / Vacant | 9 | 13 | 18 | |
| Rural Lifestyle | 2 | 4 | 1 | |
| TOTAL | 53 | 66 | 70 | |
| Value of sales ($) | Dwellings
(Excludes Apartments) |
$16,997,966 | $24,571,063 | $25,567,000 |
| Apartments | $3,092,250 | $3,638,500 | $980,000 | |
| Sections / Vacant | $4,119,000 | $4,094,500 | $4,980,000 | |
| Rural Lifestyle | $1,870,000 | $3,410,000 | $1,100,000 | |
| TOTAL | $26,079,216 | $35,714,063 | $32,627,000 | |
| Median Sell Price | Dwellings all types | $420,000 | $525,000 | $462,000 |
| Apartments | $419,500 | $405,000 | $249,000 | |
| Residential Dwellings | $573,033 | $599,000 | $542,500 | |
| Units | $399,400 | $256,000 | $388,250 | |
| Townhouses | $385,000 | $363,000 | $442,000 | |
| Sections / Vacant | $325,000 | $220,000 | $232,000 | |
| Rural Lifestyle | $935,000 | $905,000 | $1,100,000 (1) | |
| Median days to Sell | Dwellings all types
(Includes apartments) |
60-days | 54-days | 40-days |
| Residential Sections | 16-days | 130-days | 90-days |
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.
Our customers that purchased where do they come from?
Snapshot of the past 12 months September 2012–August 2013
| Locations customers-Local | 55.2% |
| Locations customers-Regional | 12.5% |
| Locations customers National | 16.5% |
| Locations customers-International | 15.8% |
