Exciting projects in the south
The winter chill has undoubtedly impacted the property market, but our southernmost markets, particularly Christchurch and Dunedin, remain busy with some exciting city projects on the go.
In Christchurch, we’re seeing plenty of positive developments such as the convention centre, library, sports facilities and a potential new stadium, which is anticipated to attract people to the inner-city suburbs.
Most suburbs across Dunedin, including the coastal and peninsula areas, have seen quarterly value growth in between 3.4-3.7 per cent up to June. A key driver is that the region appeals to a variety of buyers — by offering a competitive entry-level price below $400,000, coupled with premium properties. This is bucking the trend seen across many main centres, where the top end of the market is seeing slower than usual sales.
We’re also seeing exciting projects take shape in Dunedin, such as the hospital development, estimated to take seven to 10 years to complete. Such a large-scale development is likely to lead to increased demand for rental property, as construction workers seek temporary accommodation during the build, and healthcare professionals seek quality, longer-term rental accommodation. At a time when value levels are moderating, the outlook is bright.
While we’re talking about the Deep South, we have seen increasing media focus on Queenstown. This is understandable, with the QV House Price Index showing an average value of $1,152,201 and quarterly growth of 2.8 per cent for the Queenstown Lakes region.
The announcement that the Cardrona ski field will nearly double in size, following a partnership deal, is big news for Queenstown. The development is reportedly going to make Cardrona the country’s largest ski field, so it’s likely to bring major economic benefits to Queenstown and Wanaka. In saying this, it may also put extra upward pressure on future rental prices in a market already facing housing affordability challenges. Development is expected to start in three years.
So, what’s in line for the remaining winter months? We’re not anticipating anything too dramatic — interest rates have kept relatively low and Adrian Orr’s announcement that the OCR will be kept at 1.75 per cent for the foreseeable future will help keep things ticking over. But large-scale developments are being announced almost every week across the country, so it’ll be fascinating to see the market’s response once these projects start.