Real estate agents say Auckland families and investors flocking to Queenstown are helping the Covid-hit tourist town rise from the ashes - at a price.
A five-bedroom do-up property on the edge of Wakatipu Lake sold under the hammer for $1.69 million, with 24 bids driving the price $690,000 above its CV.
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Bayleys agents Mark and Hope Martin, who marketed the house at 963 Frankton Road, told OneRoof the auction was the busiest they’ve had "probably ever”, with 13 bidders on the phone from Auckland and another three in the room.
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“Most of the people interested were from Auckland - investors and people looking for a potential holiday home, which we’re seeing a lot of right now,” Hope said.
After vigorous bidding by Auckland buyers, the 1980s lake edge holiday house was sold as a do-up to a neighbour. Photo / Supplied
“People were looking at it as a doer-upper, as something they can renovate or add value,” Hope said. The land, however, was the main driver of price.
Elsewhere in Queenstown, a modern new build property at Jack’s Point sold for $1.62 million.
“Both properties sold way above expectations. We got worried after the lockdown but now Queenstown has risen above as it's seen as a desirable place to live,” Hope said.
The Martins, who also marketed the Jacks Point property at 32 Falconer Rise, said the three-bedroom and three-bathroom home was snapped up by an Auckland family.
“Lots of people are working remotely now and they’re seeing Queenstown as a desirable place to live and holiday. [They] are people who aren’t traveling and see the resort as a place to have a holiday,” Hope says.
Five bidders competed to secure the home.
A house at luxury Jacks Point, 32 Falconer Rise, sold for $1.62 million at auction. Photo / Supplied
David Gubb, Bayleys’ managing director for Frankton office in Queenstown, said he felt a great atmosphere in the room during the auctions.
“We had the busiest day we’ve had for a long time.”
“Buyers have paid premium prices so vendors are happy. It gives us confidence going into the New Year,” he said.
He added that an Auckland couple who recently moved to Queenstown managed to secure an affordable property at the auction. Christchurch investors were also active, securing one property at the auction.
This gels with what economist Tony Alexander sees: he noted that first home buyers have backed away from Queenstown Lakes but that the number of investors had risen.
About 75 per cent of real estate agents, who responded to a survey by Alexander and the Real Estate Institute of New Zealand, said they were seeing more investors in November, the highest number in the last seven months, but there had been a marked drop in the last three months of investors selling properties.
“People are getting more confident about economical redirection of Queenstown down the track and have high expectations,” he said.
The latest employment figures released by Stats NZ show that Queenstown-Lakes district had 1,155 fewer jobs in the September 2020 quarter than in the same period last year – a 5.3 percent decrease.
- Additional reporting Otago Daily Times
