Arrowtown-based Luxury Real Estate directors Terry Spice and Nick Horton say $815 million has been plonked down on Queenstown homes worth more than $3m in the past two years.
This includes six residential house sales of over $8m in the past 12 months.
"We have another under contract at a similar level," they say.
They quote Real Estate Institute of New Zealand figures showing last year there were 70 local house and seven landholding sales over $3m, compared with a decade ago when just 12 houses and three sections changed hands for $3m-plus.
It’s not just the number of sales but also the values that are rising.
An example, they say, is a country estate in Slope Hill Rd that sold for $3.8m in 2016 resold for $7.25m last year.
Horton comments: "We find a lot of our Auckland or North Island clients start with holiday homes in the area and then find they want to shift here permanently.
"In terms of the Australian market, the feedback we’re receiving is they favour residential transactions in NZ because there’s no stamp duty and low brightline/capital gains tax thresholds."
As an example of the effects of stamp duty in Australia, where it varies state to state and depends on the type of transaction, "on an $A3m investment property in New South Wales, the stamp duty would be around $A148,000".
On top of this, Horton and Spice argue Queenstown’s become increasingly attractive to out-of-town buyers, even if build costs have become "relatively expensive".
"The Australian market sees value in Queenstown," they say.
"Part of the value they see is in the destination, the landscape and the lifestyle.
"That, combined with some of the incredible architecture and interior design we have on offer, give them something they generally can’t get at home.
"The diversification of the local economy and improvements in retail, infrastructure, healthcare and hospitality are certainly attracting new residents from a diverse range of industries and backgrounds.
"There’s a lot of optimism about the future of the district, and the investment in infrastructure and development underpins significant confidence in Queenstown as a place to own property."
Spice adds the ability to work remotely was one of the key post-pandemic learnings — with Queenstown having the extra advantage of good airport connectivity.
"Queenstown and the wider area have been opened up to folk who previously couldn’t consider being outside the main metropolitan areas."
