Lifestyle property update - Queenstown NZ

Welcome to another warm Autumn in the Whakatipu Basin. As part of my commitment to Queenstown’s lifestyle property market, I’m delighted to bring you my quarterly lifestyle property update. I hope this information is valuable to you and look forward to any feedback or questions about the data presented here.  

Looking back at 2022

A detailed analysis of 2022’s lifestyle property sales indicates that sales volumes have stabilised, going back to more consistent historic levels when compared to the record-setting numbers of 2021. Dwelling sale numbers have reduced by approximately a third to 53 sales for the year, while the median sale price held firm at an historically strong $3.9 million. 53 sales is in fact the current ten-year average in terms of sales volumes for lifestyle dwellings. The premium end of the market is holding up well, with an increase in the percentage of sales over $5 million compared to 2020 and 2021, whilst there was a decrease in sales between $3 million and $5 million.

Meanwhile section sales volumes were lower than recent years, showcasing 27 sales recorded last year. The median sale price of sections was down slightly at $1.525 million, however eight section sales were recorded at prices above $3 million, again indicating that demand continues for prime sites.

2023 The first quarter

• Developers and section owners are holding strong on their value expectations, which has resulted in just one sale being recorded in the first quarter of 2023, being a Dalefield 1ha site realising $2,180,000
• Eight lifestyle dwelling sales have been recorded to the end of March 2023, ranging from $1,576,000 for an Arrow Junction home to $7,600,000 for a Wyuna Preserve home in Glenorchy. The median sale price for the first quarter is $3.95m

10 year median lifestyle dwelling sale price and volume

Below is a snapshot of sales volume and median sale price changes in the Queenstown lifestyle market over the last ten years. It’s worth noting that median section and dwelling sale prices in the local lifestyle market have approximately doubled between 2016 and 2021.

What's on the market?

See a snapshot below of what’s available to purchase in the Queenstown lifestyle property market, covering an area from the Gibbston Valley through to Glenorchy.

 The median advertised asking price of sections on the market is currently $2.495m, while the median asking price of dwellings currently being marketed is $3.722m up from $3.495m in December.  Volume wise, the amount of lifestyle property on the market is 23% higher than at 31 December 2022 and 75% higher than 31 March last year.

Looking ahead

In 2021 & 2022 we anticipated that more vacant lifestyle sites would come to the market as Lifestyle Precinct Sub-Zone areas were finalised under the Proposed District Plan and Resource Consents were processed. This has not eventuated to the extent expected and we note a number of properties going through the consent process are held up currently due to new Central Government provisions around development over productive soils. QLDC is currently working through this process.

About 15% of New Zealand's land is categorised as highly productive. That means it's the country's most fertile and versatile land. The national policy statement will improve the management of this land by providing clear and consistent guidance for councils. The National Policy Statement for Highly Productive Land came into effect from 17 October 2022.

The source of good lifestyle land for development within the Whakatipu Basin is limited, and over time with supply and demand pressures is expected to increase in value at a rate over and above other property sectors.

Lifestyle property is a specialist area requiring specialist knowledge, expertise and networks. For more information on how your asset is placed within the current market or a free-no-obligation appraisal of its value, please get in touch. With 28 years of property valuation experience, I’m delighted to put my knowledge and insight to work listing and selling property.