De­mand for homes cools


A ‘‘fren­zied’’ hous­ing hype ap­pears to have died down around the Cen­tral Otago and Queen­stown Lakes re­gion.

De­mand for res­i­den­tial prop­er­ties in Cen­tral Otago and Queen­stown Lakes is down 9.2 per cent over the past three months, ac­cord­ing to lat­est prop­erty fig­ures.

The real-time mar­ket sta­tis­tics show res­i­den­tial hous­ing de­mand is down na­tion­ally on av­er­age 13.8 per cent over the past three months. While many re­gions ex­pe­ri­enced a cool­ing, de­mand in Otago and South­land climbed by 10.7 per cent and 24.5 per cent re­spec­tively.

Bay­leys Cromwell-based real es­tate agent Gary Kirk said there was still ‘‘a lot’’ of in­ter­est in prop­er­ties but the mar­ket had ‘‘lev­elled off’’.

‘‘I think prices have lev­elled off and I don’t think they will change much. The hype has slightly gone and it is prob­a­bly a bet­ter mar­ket for peo­ple. Peo­ple are still get­ting good money but we are not get­ting the num­ber we were get­ting of open homes and peo­ple aren’t bat­tling to get a house now. The de­mand has dropped off. There are quite a few homes on the mar­ket.’’

The main prob­lem was the lack of sec­tions, he said.

‘‘There are no sec­tions for any­one to build on. There is noth­ing in Cromwell but there is real de­mand.’’

Har­courts Queen­stown man­ager Ge­off Stevens said the mar­ket was prob­a­bly not as ‘‘fren­zied’’ as it was lead­ing up to­wards the end of last year, but there was still de­mand for prop­erty, and a short­age of prop­er­ties for sale, in the re­sort town.

‘‘It was quite fre­netic but now there has been a but­ton-off of de­mand to some ex­tent...Loan Value Ra­tios are af­fect­ing in­vest­ing but there is still de­mand and there is still a short­age of prop­er­ties for sale. We are still see­ing some prop­er­ties go­ing to multi-of­fers and go­ing in ex­cess of their ask­ing price. Some prop­er­ties are go­ing ex­cep­tion­ally well but some are stick­ing around in the mar­ket place for a bit longer than we would ex­pect.’’

Elec­tion year tra­di­tion­ally caused un­cer­tainty in the mar­ket, he said.

‘‘Last time there was an elec­tion year things went quiet.’’

Other fig­ures show the av­er­age prop­erty ask­ing price in April com­pared with the pre­vi­ous month across the re­gion in­creased 5.5 per cent to $867,517.

‘‘The hype has slightly gone and it is prob­a­bly a bet­ter mar­ket for peo­ple.’’


Di­rec­tor gen­eral of con­ser­va­tion Lou San­son, Wakatipu DOC man­ager Ge­off Owen and in­ter­na­tional con­ser­va­tion lead­ers.

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