High-flying southern players a confident lot
Queenstown commercial property players are a confident lot – which may account for the tourist town’s pronounced boom and bust cycles.
The high number of speculative investors from Auckland and overseas is another reason.
One of the latest commercial developments backed by Auckland investors and due to open in September is Queenstown Central – a misnomer because it is actually located 10 kilometres from central Queenstown near the airport at Frankton.
It is comprised of five buildings – the last two under construction – providing about 10,000 square metres of shops and 4500sqm of offices in a main street and town square configuration that has become popular in the area.
Other projects under way include hotels either under construction or at marketing stages.
Property investor confidence in Queenstown continues to lead the country, according to Colliers International director of valuations John Scobie.
For three years confidence has consistently been higher than in all other property hotspots including Auckland and Tauranga, he said.
Some Queenstown longer-term proposed developments by well established developers include Porter Group’s conference centre at Remarkables Park and gondola to The Remarkables ski area, Queenstown Airport’s expansion, and Skyline’s $100 million replacement gondola and new buildings.
Colliers’ latest annual snapshot reiterates familiar themes – retailers pay premium rents and key money to secure space in central Queenstown, empty shops and offices are rare, and few commercial properties come to the market for sale.
An option for some tenants is to move to properties at Frankton Flats near the airport where rents are cheaper.
Skyline’s planned redevelopment of O’Connells on Camp and Beach streets in the centre of town may cause some of the mall’s current occupiers to look at relocating to Frankton Flats, Scobie said.
Lack and cost of car parking for staff and customers is another prompt for office occupiers to move to Frankton Flats.
The Queenstown Lakes District Council’s proposed construction of new headquarters on Stanley St would free up space in their four existing offices, and a proposed extension of town centre zoning may provide some supply.