Queenstown-Lakes continues to hold its own In the Luxury property market
While the residential property market around the country continues to seesaw in the major metropolitan centres, Queenstown-Lakes continues to hold its own and one market in particular stands out.
The luxury property market has experienced consistent activity, being largely untouched by interest rate rises or other financial constraints. Buyers primarily from Auckland and Australia appear to have ‘money in the bank’ and a desire to invest in holiday homes or remote working options in one of the most beautiful parts of the country.
And the Harcourts Queenstown team is proving adept at working with vendors and buyers to achieve outstanding results in sales well over the $2.5 million mark.
Queenstown Sales Manager Priscilla Uhrle says that thanks to their tailored international marketing campaigns, it is not uncommon to see multiple offers on the same property, and offers presented typically contain minimal conditions.
“In some cases our sellers are receiving cash unconditional offers in multi-bid situations,” she says.
A good example of this was the recent sale of 531 Speargrass Flat Road, a luxury property listed by Harcourts in late 2022. Interest was extremely high with 43 enquiries, 11 inspections and five offers received from buyers in Queenstown, Auckland and Australia. A cash unconditional offer at $4.65 million secured the property.
Agent David Poppleton says buyers and sellers from Auckland are a strong demographic in the higher-end market, with properties that are for sale, or have sold, from the Dalefield in the Wakatipu Basin through to Queenstown Hill and out to Closeburn.
15 Summit Lane, a rural home with big lake views, is on the market with agent Kate Law and is also receiving strong interest from the Auckland market.
David Poppleton says he is talking to “lots of Auckland buyers” who are keen to relocate to the area because they can do their jobs remotely, or can be close to Queenstown Airport.
David also introduced the buyer to 56 Panorama Terrace which sold for $2.8 million following a three way multi-offer situation with both Auckland and Australian buyer interest. The new Auckland based owner plans to use it as a holiday home for his family but also for trips to check up on the new business he’s established at Five Mile.
“The days of what happened in Auckland adversely affecting us a few months down the track seem to have disappeared.
“Now, it seems that the Queenstown property market is holding its own. It’s very obvious right now that Aucklanders are watching Queenstown very closely, and we are likely to continue to see strong activity in the luxury markets from higher net worth Aucklanders.”
Priscilla says she has to agree. “Our prices are holding, buyers from Auckland and Australia in the upper luxury market are extremely active, and it seems they have money to spend.
“Pre-covid, people buying holiday homes needed them to make money so they went into the rental or Air BnB market. Post-covid, there are a lot more demand for ‘lock and leave’ properties without the requirement to yield income when not in use by the owner. The market has really changed.
“What’s also interesting to see is that compared to years gone by, the bigger ticket properties are spending a shorter time on the market and are receiving multiple bids and cash offers, sometimes from people who haven’t even physically viewed the property themselves.”