Bayleys Queenstown had its biggest-ever auction last Friday with two bidders battling it out for a two-bedroom, one-bathroom property described as an “industrial chic pad” on Tenby St in Wanaka that eventually sold after 39 bids for $2.26m.
Properties in what is seen as the more affordable and family-friendly subdivisions such as Shotover Country also attracted attention and sold on the day.
A four-bedroom, two-bathroom home on Walton Way went for $1.25m, while a four-bedroom, three-bathroom home on George Drive sold for $1.455m.
Bayleys Queenstown general manager David Gubb said local families predominately purchased homes in Shotover Country and Hanley’s Farm, while the out-of-town bidders tend to favour apartments and properties in the town as holiday homes.
The cheapest property to sell under the hammer last week was an apartment on Melbourne St in Queenstown for $750,000.
Gubb said while the market had slowed, properties such as family homes in the sought-after suburbs are still selling.
“You’ve got to work to sell stuff. There’s no question about that. There are fewer buyers than what there has been in recent time but prices being achieved are still good.”
Of the 23 properties called at last week’s auction, 18 sold under the hammer. In addition, six sold prior to the auction and four received offers afterwards.
Bayleys Queenstown is also holding another additional auction next week where a further five properties are due to be called.
Harcourts Otago business owner and auction manager Richard Stringer said its Queenstown office also has an impressive 94% clearance rate at auctions compared with a 71% clearance rate across all six of the areas it operates in.
At the end of October, a property in Kelvin Place in Kelvin Heights in Queenstown attracted three buyers who put a total of 144 bids on the property before it sold under the hammer for $1.805m.
There is still a lot of demand for property in Queenstown including from people in Auckland, Wellington and Waikato continuing to move to the area, he said.
"I think there's been exceptional buyer demand and it hasn't really eased off. It has eased off a little bit, but not to the same degree as the rest of the country and I think it's a market that is comfortable with the auction process."
New Zealand Sotheby's International Realty managing director Mark Harris said they had also seen some positivity in the market in the last three to four weeks and there is strong enquiry coming in from overseas buyers looking to move to New Zealand.
“It’s definitely not like 2021, but it’s showing some consistency which is good. When prices are accurate and vendors are meeting the market so to speak, the buyers are there.”
Some of the overseas buyers are in the process of applying for residency visas and are looking for $7m plus properties. More stock is also in the pipeline which, he said, should address the scarcity of high-quality stock.
“We have certainly got quite a few good-sized deals going on in the background at the moment.”
Meanwhile, Queenstown locals are continuing to trade up, he said, and lifestyle areas such as Lake Hayes, Jack’s Point and Dalefield which are priced around $2m are in demand.
“We’ve actually got local residents shifting up in size.
"They are looking for properties within Queenstown so the market transacting within itself and then a steady flow of Aucklanders and Sydney-siders that sort of thing looking at purchasing in Queenstown or Southern Lakes in general.”
- OneRoof
