Queenstown Market Update - November 2024
The Queenstown market may not be setting records, but it’s steadily progressing with a clear shift toward optimism. In the past few months, we’ve seen a rise in pre-approval inquiries, and real estate agents report increased engagement at open homes. With interest rates dropping, the cautious approach of the past appears to be giving way to a more upbeat outlook, with more properties hitting the market and vendors anticipating a boost in buyer demand.
Buyer Activity
Owner-occupiers and first-time buyers remain the main players, but we’re also seeing local investors return thanks to favourable policy changes. Overseas investors are showing interest too, fuelling more enquiries.
Open home attendance is holding strong, especially for new listings. Homes that have lingered on the market may not be seeing as much foot traffic, but that could mean negotiable opportunities for savvy buyers. Auction attendance and clearance rates have dipped slightly compared to last month, yet there’s still reasonable interest. Most vendors are aligning their prices with market trends, though a few are holding out for higher offers—whether that’s a smart move remains to be seen!
Local Sales Insights
The median house price in Queenstown Lakes for October was $1,375,000—a 1.9% increase from September and up 5.8% from this time last year. Sales numbers are on the rise too, with 113 recorded transactions, up from 106 in September and close to the annual peak of 116.
Regional Sales Breakdown
In Central Otago (excluding Queenstown), the median house price was $740,000 in October, reflecting a 7.5% dip from September and a 9.8% drop year-over-year. However, it’s essential to remember the region’s diversity, with Wanaka properties averaging around $1.5 million while smaller areas come in well under the median. Only 30 sales were recorded in Central Otago this month, down from 41 last year.
Across Otago, the median house price is $745,000, an 11.2% increase from last year. The region saw 359 sales in October, slightly below last year’s 378. Properties are moving faster, too, with an average of 42 days on the market—a full 12 days shorter than this time last year.
The Takeaway
The market’s on an upswing, and for buyers, this could be the perfect moment to act. Interest rates are easing, there’s a variety of properties available, vendors are open to negotiation, and prices are still on the lower end. All signs point to a potential market lift as we head into early 2025, with agents cautiously predicting that the second quarter could see significant growth.
Our advice for buyers? Get your pre-approval sorted now so you’re ready to jump when the time is right—before prices and demand start climbing.
Need guidance on pre-approvals or securing your finances? Reach out to our Queenstown mortgage advisors. With our insights into both the local and national markets, we can help you navigate today’s market conditions to your advantage.