Real estate agent Gary Kirk, of Bayleys Realty Group, said ''more and more'' homes in the Cromwell district were being listed and sold with million-dollar-plus price tags.
The trend had become noticeable over the past year, while prices for other homes had also reached new heights, Mr Kirk said.
A three-bedroom home in Cromwell would now typically sell for between $650,000 and $750,000, compared with between $580,000 and $650,000 two years ago, and about $400,000 two years before that.
Section prices in Cromwell now started at about $280,000, and building prices were between about $2100/sq m and $4000/sq m.
In the industrial sector, land prices per square metre had also increased, fetching between $250/sq m and $400/sq m now, compared with between $190/sq m and $280/sq m as short a span back in time as two years ago.
However, Mr Kirk hoped that prices were becoming steady now.
This would be good for the Cromwell community, as there would soon be ''a resistance'' from buyers and businesspeople about how much they were willing to pay, Mr Kirk said.
Central Otago District Council property and facilities manager Mike Kerr said the ''very active'' residential market included various residential subdivisions.
Thirty-three out of 78 sections in the 4.5ha Gair Ave subdivision had sold and the CODC was now considering whether to make more land on Gair Ave available.
The first sections are also selling in the subdivision on
the old Top 10 Holiday Park
in Cromwell, many to home franchise companies.
Elsewhere in Central Otago, some record prices were also being seen for residential properties, Prime Real Estate principal Phil Gilchrist said.
He recently sold a one-bedroom house and studio on a 316sq m section in Clyde's historic precinct for $910,000.
While the modern ''heritage-style'' property was ''unique'' and in a prime location, the sale was also an indication of and would contribute to the rising house prices in Clyde, he said.
Another older two-bedroom home on a residential section of about 1400sq m in Clyde sold earlier this year for more than $700,000, and a group of new luxury three-bedroom townhouses in Clyde is being marketed at $830,000 each.
Central Otago Mayor Tim Cadogan said while the high prices were ''great for those in the market'', they were ''absolutely despairing for those outside of it''.
It was becoming increasingly difficult for people wanting to buy their first home, Mr Cadogan said.
''My first home was bought on a single income with two kids, and that is now an impossibility.''
He said a ''total rethink'' of the housing market was needed, including looking at different-sized and different-styled homes, on smaller pieces of land.
''We really need to look at things for the lower end of the market''.
Cromwell snapshot
- A two-bedroom unit is for sale at inquiries over $375,000.
- A three-bedroom ‘‘entry level’’ home is priced at inquiries over $569,000.
- A newer three-bedroom home on a 668sq m section is priced at $780,000.
- A six-bedroom duplex in the Dunes subdivision is $1.175 million.
- Sections in stage four of Pisa Moorings are priced from $299,000 to $320,000 for sizes ranging from 604sq m to 1000sq m.
- House-and-land packages on Gair Ave are priced from $590,000.
- 34ha blocks in the Bendigo Hills subdivision are priced between $670,000 and $768,00.0
- 1500ha of Wainui Station for sale is being marketed as a ‘‘recreational playground’’. Sales agent Russell Reddell said the owners of the station were retaining the homestead and woolshed on 50ha, selling the remainder over four titles.
