Clyde, in central Otago, is often overlooked by travellers who fly to Queenstown or head to Wanaka, but the tiny goldmining town has a following and is hard to break into, agents say.

There are water sports on Dunstan Lake and the town is popular with cyclists, boasting several top-class cycling trails, including the Otago Central Rail Trail.

People from Invercargill and Dunedin have long been coming to holiday homes in Clyde but there are more permanent residents now, says Peter Hishon from Tall Poppy central Otago.

People love the history as Clyde is one of the oldest towns in the country, he says.

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“There was a massive goldmining boom here in the 1860s. It’s got a mixture of everything. It’s the centre for three bike trails - you can just hop off at Clyde and go off on the Rail Trail, or through the gorge or around the river to Alexandra.”

People also love the weather in Clyde because there are four distinct seasons, Hishon says.

“We’re the hottest part of New Zealand in summer and the coldest part in the winter.”

There are vineyards all around and a lot of stonefruit, from cherries to apricots and peaches to nectarines and also apple orchards.

An aerial view of Clyde, in Otago

The town is best known for the Otago Central Rail Trail. Photo / Getty Images

“It’s a little oasis,” says Hishon. “The hills are barren and rocky and there’s wild thyme growing in the hills which was imported by the Chinese (during the goldrush) and it just grows like a weed around here so in November all the hills turn to a lovely pink colour when they go into flower.”

Clyde has become more upmarket than it used to be and it’s commonplace for homes to sell for over $1m these days.

Hishon says people love the boutique village feel, and the town centre was redeveloped a few years ago with new retail shops, restaurants and a cinema.

“In the future, it’s going to be a bit of a mini-Arrowtown.”

Those who buy in Clyde are often people who have holidayed there and liked it so much they have decided to make their home.

An aerial view of Clyde, in Otago

This four-bedroom home on Chandler Crescent in the town is searching for buyers with $1.655m-plus. Photo / Supplied

Entry-level houses sit around the $650,000 to $800,000 mark and baches can fetch $750,000.

Tall Poppy is selling 33 Chandler Crescent, a four-bedroom home which includes an established Airbnb with private access.

That’s on the market for enquires over $1.655m, and Hishon says Tall Poppy is soon to list historic Dunstan House, which has accommodation and a café and is one of the oldest buildings in town www.dunstanhouse.co.nz.

“There’s still a cellar underneath the floor from the days when they used to roll the barrels of alcohol through a hole in the wall and down underneath the floor in the cellar, back in the wagon days.”

Rhys Chamberlain from Mike Pero agrees that Clyde has increased in popularity. “I reckon 15 or 20 years ago Clyde was pretty dormant, pretty stale.”

An aerial view of Clyde, in Otago

A four-bedroom home on McArthur Road is for sale for $1.399m. Photo / Supplied

But Chamberlain says things have changed since the town centre was revitalised and now there are “awesome” cafes and restaurants.

There are still people looking to buy holiday homes but there are also homes reflecting people who want to live in Clyde permanently.

He has a four-bedroom property on McArthur Road for sale for $1.399m which has 10 acres which has had interest from outside the area.

The home has mountain views and Chamberlain says you have to look pretty hard to see the neighbours.

Find more houses for sale in Clyde here.