Up to hundreds of thousands of dollars have been slashed off the asking prices of properties in the North Island’s main ski town of Ohakune as owners finally adjust their expectations to meet the market.
House values in Ohakune have been on a downward slope since 2021 with the average value dropping 14% from $569,000 to $489,000 in the last year, according to OneRoof-Valocity data.
At the same time the number of houses for sale in the town ballooned from about 30 at the peak of the market in 2021 to currently 91 properties listed for sale on OneRoof.
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Agents told OneRoof some vendors had previously been holding out for the eye-watering prices reached in 2021, which meant some properties had remained unsold for many months if not years. New properties had also been listed creating more competition for those trying to sell.
Ohakune also faced its own unique pressures with the bad weather impacting the ski field operations in 2022 and then uncertainty around whether Whakapapa or Turoa ski fields would even open after the operator Ruapehu Alpine Lifts placed itself in voluntary administration later that year. The company is now in receivership owing almost $70m to creditors and locals are expecting announcements on the future of the ski field operations within the next few months.
But after being unable to attract the high boom prices of 2021, vendors have adjusted their expectations resulting in some hefty price reductions and attractive prices.
The compact property at Matai Street has a living area downstairs and a mezzanine bedroom upstairs. Photo / Supplied
Tall Poppy salesperson Kath Campbell said there were some bargains to be had and she has even marketed several properties as being “steals”.
The cheapest property for sale in the town is a one-bedroom chalet at 20 Matai Street which is inviting enquiry over $150,000 – $30,000 less than its RV.
Campbell said it was exceptional value and was attracting a lot of interest.
“That’s pretty cheap even for that.”
A similar cabin on Matai Street had its price knocked down to $160,000 from an initial asking price of $280,000 at the start of 2022.
A three-bedroom, one-bathroom home on Tainui Street is being marketed as a "steal of a deal" with an asking price of $420,000. Photo / Supplied
She pointed to a three-bedroom, one-bathroom fully furnished 1970s property at 55 Tainui Street as another bargain. The listing described it as “an absolute steal of a deal” for the asking price of $420,000.
Campbell said the freehold home would suit the local first-home buyers and those returning to the area who were house hunting again.
Another property marketed as a “steal” even if it was “not for the faint-hearted” was a complete do-up on a 1016sqm section on Arawa Street that sold in November 2023 for $218,000.
An 'as is, where is' house on a freehold 1016sqm section on Arawa Street sold for $218,000 in November last year. Photo / Supplied
Locals also picked up a tidy chalet on Manuka Street for $430,000 in December that they plan to spruce up and run as a short-term let.
Campbell said 2023 was a slow year for sales in Ohakune, but she had noticed an uptick in enquiry and sales at the end of last year. Just before Christmas she had four houses go under contract in quick succession.
“Things are changing, things are picking up.
“The only thing that happened prior to me getting busier than the whole of 2023 was the election.”
People who waited too long might find they miss out on the current good deals, she added.
Bayleys salesperson Jenny Dekker agreed it was a buyers’ market due to how many properties were for sale.
Some vendors had been “over-enthusiastic” with their pricing, she said, and were now realistic.
“The prices are definitely coming down and represent good buying.”
A four-bedroom, two-bedroom home at 6 Wineberry Lane has had $50,000 axed off its asking price since September. Photo / Supplied
Dekker’s selling several properties that have seen significant price cuts as the vendors commit to meeting the market.
A four-bedroom, two-bathroom home at 6 Wineberry Lane has had more than $50,000 shaved off of its asking price since first being listed in September as the vendors urgently want it sold.
“Forget all previous prices as this property is now an unbeatable price: We have slashed the price to ensure a quick sale of this stunning property,” the listing said.
While a modern three-bedroom, two-bathroom home at 42 Snowmass Drive that would have sold for around the mid to high $700,000s at the peak market has just been listed for $585,000.
“You cannot build anything for $585,000 like the one at 42 Snowmass Drive, you just can’t.”
The property had attracted plenty of enquiry, which she took as a sign that it had hit a sweet spot with buyers.
A three-bedroom, two-bathroom home at 42 Snowmass Drive is described as good buying at $585,000. Photo / Supplied
“Buyers have just been looking and waiting and they won’t ring if it’s on the market if it’s too highly priced because they know in their heart that it’s too dear.”
Dekker has also just sold another home in the town in the high $500,000s after the vendors accepted about $150,000 less than the original asking price.
There had been an uplift in enquiry over summer, she said, from first-home buyers, second-home buyers and out-of-towners looking for a holiday home and bargain hunters.
“It’s a mixture, but it’s not a rush like we usually get to buy a ski house for winter.”
First-home buyers could now get on the property ladders from $400,000 such as a four-bedroom villa at 81 Clyde Street for sale for $399,000.
Family homes and holiday homes could also be picked up for between $550,000 and $650,000. A modern three-bedroom, two-bathroom townhouse at 21 Miro Park Lane is for sale for $550,000 and, according to the listing, the vendors want it sold.
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