Rentals sit idle in Queenstown
Rents at some Queenstown rental properties have been slashed by half as landlords try to pay bills and entice tenants.
Accommodation in the popular resort town had been among the most expensive in the country pre-Covid-19, making rentals difficult to afford for low-wage workers especially.
In February, the median weekly rent in the Queenstown-Lakes district was $750, remaining relatively flat on the same month in 2019.
In March, that dropped by 11 per cent to $655. In April, it dipped further to $650 per week, down 13 per cent when compared to the same month in 2019.
Landlord Bob Tovey said five of his properties had sat empty since just before the country went into lockdown.
The tenants had either lost their jobs or moved into another property closer to their work. ‘‘They were mainly hospo workers, a few tradies, people on their gap year. Most of them left town,’’ he said.
Tovey had dropped rents 50 per cent for his two three-bedroom homes in Fernhill, a one-bedroom apartment in Fernhill, a five-bedroom house on Queenstown Hill and a three-ensuite bedroom waterfront property in the town centre used for Airbnb.
‘‘I have decreased rent to $410 per threebedroom house from $800, so it’s a bargain at the moment. It’s cheaper than Cromwell rent.
‘‘I have dropped Airbnb property prices by 50 per cent, so I am getting some bookings coming in there. It’s a year of no profit, but the mortgages are covered.’’
Houses in Cromwell and Wanaka were still rented so had helped ‘‘buffer the blow’’, he said. ‘‘I have had the properties for a long time. If they were all new I would definitely be in trouble and be taking a mortgage holiday.’’
He was offering six-month contracts and then would reassess to see what the rental market was doing, he said.
‘‘This is not a sustainable business model obviously.’’ Trade Me Property spokesperson Aaron Clancy said the number of available rentals in the QueenstownLakes district saw some big jumps over the past few months.