Queenstown Market Update
As always, January is a typically slow month for real estate in New Zealand, with many people heading off on holiday and many businesses closed for a good chunk of the month. So it might come as a surprise that Queenstown recorded its highest median price at $1,515,000. Whether this is a sign prices are genuinely rising, or simply a number of higher-priced homes selling at once, is yet to be seen in February’s sales figures.
Buyer Activity
There was no buyer group that really stood out this month, mainly due to the quietness of the market. Real estate agents report fewer numbers through open homes, and that it was only the genuinely motivated buyers who were in attendance. However, they expect to see an uptick in numbers now that we are out of the holiday period and with an increase in market activity nationwide.
Price-wise, there are many motivated vendors who are happily meeting the market in order to get their property sold. However, there are also a few vendors who expect an increase in market conditions over the next month or two and are holding out for higher offers. Whether or not this is a good idea is yet to be seen, but there’s no doubt that prices in the region are on the move upward yet again.
Local Sales Insights
The median house price for Queenstown-Lakes in January was $1,515,000, which is a new record for the region. As mentioned above, this could be due to fewer sales with some higher priced homes selling at once, or it could be a clear sign of where the market is heading. This median figure shows an increase of 11.4% in December and up 10.6% on this time last year.
There were only 47 properties sold in the region in January, which is down from 126 in December, 113 in October, and on par with the same number of sales from January last year.
Regional Sales
In Central Otago (excluding Queenstown), the median house price was $820,000 in January, reflecting a 15.1% increase on the same time last year. There were 47 sales in the region, which is up on 26 for the same time last year.
Central Otago is a very diverse region, taking into account Wanaka properties which average around 1.5 million, and much smaller towns which come in well under the median. With such small sales numbers, this region can fluctuate quite dramatically in its median price, depending on the type and location of property sold.
Across Otago, the median house price sits at $675,000 which is actually a decrease of 1.1% on this time last year. There were 233 sales made in January, which is up on 199 sales from this time last year. The average property took 49 days to sell, which is slightly longer than normal, but reflective of this time of year.
The Takeaway
Prices are looking like they are on the up in the Queenstown region, and real estate agents expect a lot of interest in properties over the next few months. With interest rates decreasing, demand holding steady and market confidence improving, it’s expected 2025 is going to be a busy year property-wise.
Our advice? If you are looking to buy, come and chat with our Queenstown mortgage advisers sooner rather than later. We can help you add up your deposit and see where you are at in the home buying process. Getting pre-approved early is the best thing you can do to boost your chances of buying your dream home.
Book your free appointment with our team and let’s chat about how we can support you in making your next property move.
Stats information: REINZ