Rental market reset a ‘positive’; too early to judge longterm effect

DESPITE rental prices in Queenstown dropping by about 30%, it is too early to tell what the impact of Covid19 will be on the longerterm residential property market.

Queenstown Lakes Community Housing Trust executive officer Julie Scott said some of those on a 600strong waiting list would drop off — either because they had left the district, or because they could now afford market rents.

‘‘I, personally, think the rental market was overpriced and needed a reset, so I think that’s really positive.’’

Conversely, there may be households who had lost an income during lockdown and ‘‘suddenly find they need our assistance’’.

The trust was offering rent reductions for tenants in its 30odd rental properties, throughout the Queenstown Lakes district, on a ‘‘casebycase basis’’.

To date, about three rent reductions had been sought, and approved.

However, a ‘‘good number’’ of the trust’s shared and secure home programme households had reduced their mortgages, through mortgage holidays or by paying interest only.

Once the sixmonth mortgage holiday period ended, the longerterm effects on those households would be more clear.

‘‘Hopefully, lots of people will have resumed work and have income back up to a decent level by then, but, again, it’s just a little bit tricky to tell at this stage.’’

While the trust had consent and intended to start building a sixhouse development in Wanaka soon, it was reviewing other projects and might delay some.

It had a contract for 50 ‘‘Toro Apartments’’, under construction at Remarkables Park, due for settlement next February.

‘‘I guess we’re reviewing how we deal with each of our projects.

‘‘It is just too early to tell [what will happen to the property market].

‘‘Until we start seeing some property sales, we really don’t know what’s going to happen there.’’