Mackenzie region in the South Island has seen the country's biggest leap in median sales price in the last 20 years. The 508 percent increase outstrips jumps in Queenstown (up 396 percent), Dunedin (up 352 percent), Auckland (up 253 percent) and Wellington (up 217 percent) and Christchurch (up just 185 percent).
Twenty years ago buyers in the region could pick up a home for $71,500. Now they'd typically have to shell out $435,000.
The Church of the Good Shepherd at Lake Tekapo is a popular tourist attraction. Photo / Getty Images
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Mackenzie, which is home to Aoraki/Mount Cook National Park and ski-fields that are as every bit as stunning as those in neighbouring Queenstown Lakes, is OneRoof's pick for further big increases in property values. It has all the elements to be the next Queenstown - a solid economy, relative affordable housing and scope for large-scale development.
Visitors to Lake Tekapo and Twizel will have seen a marked increase in residential construction and it doesn't take a big stretch of the imagination to envisage a transformation on a par with Queenstown's and house prices to match.
OneRoof editor Owen Vaughan says: "Everybody is looking for the next Queenstown and Mackenzie could well be it. Although the area lacks an all-important airport, it still well connected, with Christchurch just several hours' drive away. Those that buy into the area now could easily be sitting on well over million dollars by 2040."
OneRoof data shows the current median value of all property in the region is $440,000, up 9.1 percent year on year. By contrast, Queenstown's median value is $975,000, up only 1.3 percent year on year. Mackenzie's most expensive suburb is Lake Tekapo, where the median value has risen 12 percent year on year to $980,000. The median value for Twizel is a more affordable $475,000, while in Fairlie it's $370,000.
Mackenzie is home to Aoraki/Mount Cook National Park. Photo / Getty Images
Coralie Reid, an agent with OneAgency in Mackenzie, says the area has been undervalued for some time, but that is now changing. “Economic factors are driving [an increase in property values]. We have aquaculture, fishing, tourism, hospitality, construction, Aoraki Mt Cook National Park, we now have an international dark sky reserve status too,” she says.
The biggest town in the district is Twizel, with about 1250 residents. It is surrounded by canals for the Upper Waitaki Hydroelectric Scheme which generates power for close to a million homes.
The canals run with the same turquoise waters as Lake Pukaki and are home to some of the best salmon and trout fishing in the country.
Neighbouring Lake Tekapo is also a fast-emerging tourism destination. So is Fairlie, the closest town to the Mt Dobson ski area which lures seasonal workers.
Tourism and short-term accommodation come hand in hand and it’s mainly what is driving the property market, says Reid.
“People are buying houses for short-term accommodation and our district plan allows it.”
She says the district as it has a caring community. “It’s a natural beauty of the area and a Kiwi dream of having a crib surrounded by lakes and mountains. Everyone looks after each other quite well and it’s the town that reminds people of their childhood.”
Lake Tekapo is the region's most expensive suburb. Photo / Getty Images
Mackenzie district mayor Graham Smith says the growth in property prices is being driven by the region's booming tourism industry, but believes more people are moving to live in the district permanently.
“We have peace and serenity here and we want to protect these attributes, because if we go high density, we are starting to lose these values.”
The council is now working on a 30-year plan for McKenzie with is innovative ideas focusing on managing growth and infrastructure.
“I can say that we are going to be the second Queenstown. It’s exciting and it’s great but Queenstown has a lot of issues from not being well-planned and we are going to have it well-managed,” he says.
Like Queenstown, the region has a shortage of affordable workers accommodation and is huge on Airbnb, Smith says. There are plans for three hotels, with two already gained consents, and two big motel developments in the work to cater for tourists.
Karan MacDiarmid, from LJ Hooker, says she has seen steady growth in the Mackenzie property market over the last three years, with people moving from Queenstown Lakes and Central Otago for a quieter life.
"We are in our own little bubble here. Twizel is new Wanaka of New Zealand, it is what Wanaka used to be 20 years ago," she says. "It's very cool what's happening here."
Colleague Megan Wooley says Mackenzie benefits from being the main stop-over for travellers between Queenstown and Christchurch. "It's a destination for people because of the lakes and the mountains - it's so peaceful here," she says.
