Queenstown property average hits $2 million: correction could be on the cards

The latest property market data shows some glimpses of the local property market cooling, however average prices remain high in Queenstown, now topping an average of $2 million.

New data from realestate.co.nz shows:

• Queenstown – December 22 average $2 million – up 7% month on month and 49% year on year.
• Wānaka - December 22 average $1.75 million – down 17% month on month and up 4.6% year on year.
• Central Otago - December 22 average $1 million – down 20% month on month and up 13% year on year.
• Dunedin December 22 average $644,00 – down 8.6% month on month and down 7.9% year on year.
• Auckland (North Shore) December 22 average $1.3 million – down 1.7 % month on month and down 11.2% year on year.

Speaking to Crux in order to unpick the latest numbers, Real Estate NZ’s Vanessa Williams made the following points

“So Queenstown has held strong month on month. It actually was around $1.5 million in November and, and moved to $2 million in December, but the drop of 17.7% was in Wānaka. That drop was from $1.8m to about $1.75 million”

“In terms of new listings Central Otago had 66 new listings, Queenstown, you had 67 and in Wānaka you had 57. So, there's basically all quite a drop on last year. The biggest drop was in Queenstown, actually a 42% drop in terms of new listings.”

Vanessa Williams says that the drop in new listings may indicate the leading edge of a property price correction.

Real Estate NZ's Vanessa Williams

“Sellers might celebrate, but quite quickly you become a buyer and then you feel quite upset about how the whole market is progressing quite so quickly. So I actually think that the market we're in today, which has softened, it is certainly a lot slower than it has been and people can be more considered and take more time to make the decision that is possibly going be one of the biggest decisions of their life.

"I do believe that this is a good market to transact in. And I do think that your market is now starting to potentially see the downward effects of what the New Zealand property market has been seeing for the last 11 months.

“I do think your market is particularly unique. I call it, you know, the Hamptons of New Zealand when I speak about it because  it is actually so remarkable that the most expensive region in New Zealand is quite far away from a major population centre. When I look at people who are searching within your region there is always international interest.”

"That interest is always quite high from America, the UK and Australia. I think the Covid piece is a really interesting one because there were a lot of people who did come home and now are looking at whether this is still the right decision for them.”