AUGUST PRICES
Investors are back and buying up apartments in Queenstown, according to a property market snapshot.
The Real Estate Institute of New Zealand August report said the average selling price in Queenstown was down on previous months, a reflection of the number of apartment and unit sales.
The sales of units and apartments accounted for more than half of all the August sales.
‘‘This demand was from investors activated by the stable interest rates and winter demand for holiday homes,’’ said the institute’s Queenstown spokesman, Kelvin Collins.
Demand for sections was strong, mainly at Jacks Point, especially given the shortage of homes available to families, Collins said. Queenstown’s resident population has increased, Median prices for August Central district ....... $426,500 Queenstown ............. $553,250 Whole Otago Lakes district ..... ................................................$462,500 source: REINZ driving up land prices and rents.
During August realtors sold 64 properties, comprised of 40 apartments and 24 sections.
Four properties sold for more than $1 million. Overall, August was a slower month than earlier this year.
‘‘Sales activity was also held back by a shortage of new listing of property for sale during the month but listings are expected to increase as we enter spring,’’ Collins said.
An increase in the resident population is driving land and house prices up while available rental stock is all but drying up amid a tourism and construction boom.
Sellers are cashing in and in the last three years the average price has jumped by almost $100,000.
REINZ chief executive Colleen Milne said: ‘‘First home buyers are very active with the new subdivisions near Queenstown with low interest rates helping with buyer confidence.
‘‘The auction market is very busy with most auctions well attended and prices being achieved above expectation.’’
Apartment sales in the district slowed, prices dropped, and there was a jump in mortgagee sales after the economic slowdown and credit crunch in 2007 and 2008. This followed a property boom fuelled by investment interest.