Dotcom adds to Qtown footprint
Central Queenstown’s pedestrian count is higher than ever, rents are soaring, commercial property owners are sitting tight, and new residents such as Kim Dotcom are moving in.
The internet entrepreneur is looking for a home while he stays at Blanket Bay, where night rates range from $875 to $2730.
Colliers International valuer Heather Beard said several wealthy people less well known than Dotcom had been buying property at places like Dalefield with plans to build high specification homes.
But she said the biggest influx was from mass tourism and conferences, with more than 6000 Chinese visitors coming in several waves for an Amway conference this month.
One of the measures of Queenstown business activity is the Colliers annual measure of foot traffic, which has reached the highest count since the survey began in 2005.
The growth of international tourist traffic also explains the loss of owner-operated boutique stores in downtown Queenstown in favour of international retail chains.
Beard said it might be unrealistic to expect landlords to charge cheaper rents in the interests of a more nuanced retail offering when demand for premises was at an all-time high.
The pedestrian count was up nearly 18 per cent on 2017 and 10 per cent higher than the previous record pedestrian count in 2016.
Central Camp St outside O’Connells Mall once again had the highest volume of foot traffic in 2018. This location has occupied the number one spot in Colliers’ survey for 13 consecutive years.
The biggest increase in pedestrian numbers was on Upper Beach St, the likely result of the conversion of the street to a pedestrian mall with outdoor cafe seating, Beard said.
There was also a huge increase in pedestrian numbers recorded at the entrance to Steamer Wharf at 8pm.
The survey is taken in March every year at 31 locations around the CBD, for half-hour periods at 10am, 3pm and 8pm.
The Queenstown Lakes District’s usual resident population
"There is currently zero vacancy in ground-floor retail property in central Queenstown."
Colliers International valuer Heather Beard
was 37,100 in 2017 higher than 2016), Infometrics.
Total visitor numbers, estimated at 24,900 on an average day and 79,300 on a peak day in (6.9 per cent according to 2018 – based on district council growth projections – would take Queenstown’s day population to between 62,000 on an average day and 116,400 on a peak day.
Beard said it had resulted in some very strong property market dynamics in the centre of town, including high demand for retail premises and restricted supply.
‘‘There is currently zero vacancy in ground-floor retail property in central Queenstown. As a result, retail space is commanding very high rents and there are also very few sales of prime commercial property in the CBD as owners retain their assets.’’