Queenstown Property Market Update - June 2025
Winter is well and truly upon us, and even the property market is seeing some cooling off too. With house prices slightly down, money easier and cheaper to get than it’s been in a while, and plenty of choice, it is well and truly a buyer's market.
Here are some of the key REINZ statistics from the past month….
BUYER ACTIVITY
First home buyers were the most active buyer group this month, most likely due to the continued drop in interest rates and the stable house prices. Owner-occupiers and investors remained steady, and we also continue to see enquiries from out-of-town investors.
Real estate agents report that open homes remain busy, with new listings and well-priced listings attracting the most attention. They report that most vendors are prepared to meet the market when it comes to pricing their homes, and the ones that do often see more interest and a quicker sale.
Auction room clearance rates are still on the lower side, with many properties failing to sell at auction but sales instead being negotiated behind the scenes.
LOCAL SALES INSIGHTS
The median house price for the Queenstown-Lakes region for May was $1,390,000. This is a decrease of 7.3% in April and a decrease of 0.9% compared to the same time last year.
There were 100 recorded property sales in May, which is fairly on par with this time last year and nearly 20% less than last month. Some of this can likely be attributed to the time of year - vendors are often less likely to list during the cooler months, so it’s expected the next 1-2 months could see similar listing and sales numbers, and then a potential rush of properties hitting the market come Spring.
REGIONAL SALES
In Central Otago, the median house price sits at $779,000 for May. This is 0.8% down on April, but up 11.3% on this time last year. Of course, these numbers can greatly vary depending on the location and price of the homes being sold, as the Central Otago region is vastly different in terms of housing prices between towns.
For example, the average sale price for a Wanaka home in May was $1,440,000, nearly twice that of the average Central Otago property. There were 41 sales in the town, which marked the highest turnover since March 2024.
Across Otago, the median house price sat at $659,000, which is on par with this time last year. There were 441 recorded sales across the region throughout the month.
The average Otago property was on the market for 49 days before it sold.
THE TAKEAWAY
The property market remains relatively stable and has continued to do so for the past couple of months. We aren’t seeing huge surges or dips, and this is due to a number of factors in play. There is a real lack of buyer urgency right now, with the house prices remaining stable and with plenty of choice in available properties. It continues to be a buyer's market, with many adopting a wait-and-see strategy due to the lack of competition and pressure to buy.
If you are looking to buy a home or investment property, it’s still a good idea to get pre-approved so you can make your move when the right property comes along. While there isn’t the same pressure as in the past, it’s also good peace of mind knowing you can go into the purchase with all of your ducks in a row, knowing exactly what you can afford.
What do we expect to see in the upcoming months? Probably much of the same, with the market holding fairly steady. An influx of winter visitors to Queenstown could also increase the property market over the next few months; however, it’s unlikely we will see any dramatic movement in the property market now this year.
If you are keen to buy, now is a great time with less pressure, more choice, and lower costs. Book your free appointment with our Queenstown mortgage advisers today, and we can help you navigate the process.
Source: REINZ & Wanaka App.