National property prices have hit a 5 year low, however Queenstown Lakes & Central Otago have seen higher than a 15% spike in average house prices compared to last year. As the general election approaches, it brings with it uncertainty surrounding interest rates and tighter bank restrictions, but thankfully, Otago does remain resilient and we predict a positive and confident spending mood for the foreseeable future.

To learn more, read The Otago Daily Times full article here: https://www.odt.co.nz/business/otago-houseprices-nationally-trend-slower

The latest Harcourts Otago market report has just been released and it captures exactly what we’re seeing in the market right now.

Here in Queenstown, slowing sales numbers and steadying value increase are the result of the two-tier market that is now in firmly in place. Property in the middle bracket is not fetching the outstanding premiums of 2016 – people are less willing to pay over the odds and the general concern of the election year and the potential changes to interest rates are making people more cautious. Combine that with the change in Auckland and wider New Zealand property market as well as the usual seasonal slow-down in winter, and it’s evident we’ve entered a new phase of the property cycle. Right now, excellent sale results in the family bracket are still possible but it requires use of strong sale and marketing techniques. We see this as a well implemented print strategy combined with effective digital advertising, good networking particularly in the international scene as investors are still very active in Queenstown, and the ability to gather interest and create competition among specific buyers with the right sale method for the property in question.

At the top end of the market, high end buyers are still very much willing to set new records to ensure they obtain their ideal property. Money tends not to be an issue for this demographic of buyer and outstanding property in the right location will continue to move quickly.

The six-month median prices are now $890,000 for dwellings and $535,000 for sections.

Click the image below to read the full market report for Queenstown plus additional analysis of the Wanaka, Central Otago, Dunedin and South Otago property markets.

 The June property stats for Queenstown have just been released by REINZ and they make for interesting reading as we reach the halfway point of the year. Supply continues to be the real issue in the residential market as sellers hold off due to uncertainty in the election year. Demand on the other hand is still sky-high and the key factors driving it, such as immigration, tourism and increased infrastructure spend, remain strong. We expect renewed positivity once the election passes (and we come out of the lull of winter), with an increase in sales volumes as well as continued value growth.

Over the first six months of the year, 299 dwelling sales were made at a median value of $890,000. 80 sections were sold at a median value of $535,000. Take a look at the table below for the monthly figures this year, and head to our Sales Stats page for historic figures.

Interested in receiving more stats and commentary? The latest Harcourts Queenstown market report is out on 26th July - get in touch if you'd like to receive a free copy.

Check out our video below to hear all the great things about the gorgeous Coronet Grove development just outside Queenstown.

Coronet Grove is nestled in Arthur’s Point, a beautifully serene, up-and-coming suburb between Queenstown and the world-class ski field of Coronet Peak. With four already sold, there are just four units remaining to be purchased off plans before development begins in 2018.

Each home is designed to maximise sun, space and relaxation. The kitchen features high specification appliances, the living spaces are light and open, the bedrooms are soothing and spacious, and there’s no better place for a soak after a long day on the slopes than these gorgeous bathrooms. Add the balcony to enjoy the magnificent views of the surrounding mountains as well as the roomy ski storage and garaging, and you’ve got a wonderful home in which to permanently reside or holiday.

Arthur’s Point exists at the intersect of adventure and relaxation — from this spot you can be first up the mountain for skiing and mountain biking at Coronet Peak every morning, and the world famous Shotover Jet is just around the corner. If taking it easy is more your thing, the Onsen Hot Pools and Swiss Bel Resort are just around the corner. The hub of Queenstown, with its restaurants, cafes and bars, is just a seven-minute drive away (yet you’re totally free of traffic congestion) and trendy Arrowtown is 15 minutes afield.

Each unit has three double bedrooms and two bathrooms. Zoned for visitor accommodation: live permanently, holiday in or rent out short- or long-term. Only 5% deposit required and the rest on title, with the assurance your money is kept in trust until completion in 2018. Priced from $782,000 plus GST if any. Designed and to be developed by Blueview Developments.

Get in touch if you’d like to know more about this exclusive development.

The last few weeks have been a busy time for the Osbornes as we headed over to the Gold Coast for AREC and back to Wellington for the Harcourts New Zealand annual conference. A great occasion every year, we enjoyed catching up with other real estate consultants and business owners from all over the country, sharing our current outlook of the property market and taking advantage of some great training sessions.

On top of that, the 2016-17 awards were announced which recognise the highest performing consultants, offices and franchises in Harcourts. Here's how we did:

• 1st for Harcourts Queenstown (highest sales value).
• 3rd highest selling consultants for Harcourts in the Regional South Island (South Island excluding Christchurch).
• 47th top selling agents in Harcourts New Zealand.
• Harcourts Queenstown received a Certificate of Excellence for high sales volumes and revenue.
• Harcourts was voted New Zealand's Most Trusted Real Estate Brand for the 5th year in a row by Reader's Digest.
• Harcourts Otago CEO Kelvin Collins was inducted into the Harcourts Hall of Fame for his outstanding contribution to the company.

We jumped across the pond for AREC 2017 on 28th and 29th May, a couple of days of invaluable insight from some of the leading and most forward-thinking real estate figures in Australasia.

Held at the Gold Coast Exhibition Centre, we had the chance to meet, listen to and learn from some top authorities in the industry. Here's a quick summary of our highlights.

• Nigel Dalton, former Lonely Plant CIA and influential tech expert, talking robots in real estate - holograms that can welcome us home at night, whether robots can interpret manners and how tech advancements may effect the real estate industry.
• Arabelle Hooper, a hugely successful Aussie real estate consultant, on success with family: "I've got match time and I've got bench time ... I'm ready to hustle, but time to recharge is so important."
• Josh Hart, a young and successful agent in Tasmania talking social and digital media: how to be authentic, provide social proof and the power of video and social media to create an attractive brand.
• Henry Mason, head of the world’s leading consumer trends business, TrendWatching, covering everything from smashed avocado to Pokemon Go as he explained that experiences are the new must-have amenity. "Status is about how skilled you are!"
• Leonard Steinberg, President of Compass, a leading real estate agency in New York City, talking about how EVERYTHING you do is your brand and it really matters!
• Marcus Chiminello who works in Melbourne real estate reminding us that quality is more important than volume. Deliver the ultimate service experience for your clients.
• Meeting host and real estate legend Tom Panos - a long-time inspiration of ours.

Sales statistics have just been released by REINZ and they make for some insightful reading.

Dwellings

With 50 dwelling sales in Queenstown and the surrounding suburbs in April, sale numbers were pretty steady as they have been all year - remember we nearly reached triple figures in the dizzying months of 2016. Prices were high at a median of $948,000, a 3% rise from March to April: if you compare that to an annual rise of 30% from April 2015 to 2016 and 8% from April 2016 to 2017, it’s evident that the market has been consolidating for a while now.

Sections

We had to look twice at that section median price! At over $1m it's the highest it's ever been, but it was a month of unusual section sales including one on the outskirts of town which sold for around $6m. We fully expect section median values to drop down to the previous levels in May.

The national average is down on last month at just under $600,000. Take a look at what you get in Queenstown for that amount and how it compares to other regions around the country.

Queenstown Airport can finally start building towards a truly world-class airport with the recent decision of the Environment Court to designate ‘Lot 6’ as airport land. This is just one of the several steps forward that the QLDC and Otago regional council have achieved in recent months in their bid to improve traffic and congestion issues in Frankton.

Construction of both the new airport park and ride facility and the link road behind the airport have begun, the upgrade to the BP roundabout is well underway and plans are being put in place to remove the eyesore vehicles from Kawarau Road. Meanwhile, the council is working on a vastly improved public transport system aiming for a flat $2 concession fare across the Wakatipu.

While improvements are being made to our roads and infrastructure, rising mortgage rates and tighter lending conditions are expected to limit the growth of the property market this year. Fewer section sales in the first three months of the year have contributed to a drop in sales volume compared to last year, but values this year have been higher. Overall, the market remains strong with good demand across sectors but inaccurately priced property will sit longer and property presentation is key.