Section sales are on the rise across the Queenstown-Lakes region
There are numerous indicators that identify the stages of the cycle within the real estate market. These are often visualised as a clockface with 12 o’clock being the peak of the market and 6 o’clock being the bottom. There are many factors that can contribute to the accuracy of the signs of where the property market cycle may be, but generally the trends remain somewhat the same.
Two factors that indicate a change is occurring are reducing interest rates and section sales increasing. In 2023 section sales slowed across Otago, with some months not recording any sales in some locations. Although December saw a turnaround in both inquiry and sales on sections.
Looking into the Queenstown market, the Remarkables View development stage 4B launched ten sections to market in December and four of the ten were swiftly put under contract by Harcourts, and a fifth section in the Remarkables View development in stage 4C also went under contract over the Christmas holiday period.
Harcourts has created success in Jacks Point land, launching six sections to market for the same seller. Trickling these sections to the market, we have successfully unconditionally sold four sections since August, a fifth is under offer with just one remaining available for sale. There has already been a noticeable lift in value of these sections since the first sale in August 23.
The Lake Shore development on the shores of lake Wakatipu marketed exclusively through Harcourts after recent activity now has just one section available to purchase.
Unique parcels of land such as 8 Grove Lane in Kelvin Heights are in high demand. Brought by our sellers through Harcourts auction and SOLD by Harcourts auction, this Kelvin Heights land sale set a record land sale price in Kelvin Heights (source REINZ statistics, suburb Kelvin Heights). This unique land parcel attracted national and international interest, however it was two local Kelvin Heights purchasers who appreciated its true value, competitively bidding to secure this stunning property, 8 Grove Lane sold for $1,940,000.
Over the hill in fast growing Wanaka, the Orchard Park Development is progressing well with the roading now completed and verges being planted with mature trees, ready for titles to be issued in the very near future. The Longview Development in Hawea is selling steadily and offers an affordable entry into the market in a beautiful Lakeside town that’s is fast becoming the preference for young families and holiday makers alike. Harcourts are also exclusively selling down some bespoke sections in Hawea’s more established areas as well.
Builders purchasing sections to build homes to sell for a profit are also returning to the market, along with investors having more interest in building new homes to meet healthy homes standards for their tenants rather than the alternative of needing renovate an existing home.
So why is there a focus back on land right now? Along with predictions of easing interest rates and a lift in house prices in 2024, building companies are reporting that the flow in building materials is easier now. Previous bottle necks with managing programmed construction times have loosened to a point where clients are now excited again to enter into build contracts and create homes for themselves and their families.
If you want more information on what land opportunities are available now and what developments are on the horizon, ensure you are well connected with a Harcourts consultant.