With its stunning scenery, restaurants and bars, and ‘adventure capital of the world’ tagline, it’s not hard to see why Queenstown is such a popular destination with international tourists, New Zealanders, and overseas buyers. While you’ll find plenty of accommodation if you’re visiting, a housing shortage and high prices have made it difficult for buyers to enter the property market. Housing is one of the district's biggest challenges. That said, if you want to move to Queenstown, our expert team at Finance Hub can help assist you with your finances to ensure you have the best financial foundation to start from.
What is the Average Property Price in Queenstown-Lakes?
New figures show that at the end of July, the average property value in Queenstown-Lakes hit a new high of just over $2 million. And with average property values in Otago at $991,00, the region is the second most expensive in the country after Auckland.
RealEstate puts the average price in Queenstown at $1,953,091, which, when we take into account the new debt-to-income ratios, means you would need a 20% deposit of $390,618 an income of $260,412 and an 80% loan of $1,562,473.
The median price of properties in the Queenstown-Lake District has risen by 5.6% from $1,350,000 in July 2023 to $1,425,000 in July 2024. This sits well above the national median for property prices, which is $831, 875.
And How Has This Changed in Recent Years?
At the start of 2018, the average property value in Queenstown-Lakes was, according to OneRoof/Valocity, $1,210, 573 and apart from a small dip post the Covid-19 pandemic and in the winter of 2023, has risen consistently. The average property value has increased by 62% since the trough in July 2020.
If we look back further, in 2014 the average asking price in Queenstown was $1,055,295 in 2023 it was $2,109,430 making it a 99.9% increase. Although note this is the average asking price.
This isn’t surprising given that from 2013-2023, the average asking price has increased in every region of New Zealand.
What About Renting?
Likewise the cost of renting has increased. From June 2023 to June 2024 there was a 9.7% increase in residential rents and you can now expect to pay around $691 on average a week for rent. This is compared to a national average of $568 weekly rent.
As for the median rent, according to data from Tenancy Services, the national median rent a week in Q2 of 2024 was $600, whereas in Queenstown-Lakes it is $775, which is a $75 increase from Q1.
What is the Future of the Queenstown-Lake Property?
Whilst there is always uncertainty in predictions, BNZ have recently said they predict that they are forecasting a 7% lift in house prices throughout New Zealand in 2025 following a flat 2024.
Please note this blog is just a guide, for detailed information and expert advice contact The Finance Hub by calling 0800 346 482
OneRoof House Price Report – August 2024 https://www.oneroof.co.nz/news/oneroof-house-price-report-august-2024-45948
RealEstate https://news.realestate.co.nz/blog/can-you-afford-property-under-debt-to-income-ratios
OneRoof House Price Report – August 2024 OneRoof https://www.oneroof.co.nz/news/oneroof-house-price-report-august-2024-45948
RealEstate https://news.realestate.co.nz/blog/property-prices-double-in-a-decade#district-chart
Infometrics https://qem.infometrics.co.nz/queenstown-lakes-district/housing/residential-rents
Interest https://www.interest.co.nz/property/129186/residential-rents-flat-overall-june-quarter-after-bigger-increases-earlier-year Data Source: Tenancy Services
NZ https://blog.bnz.co.nz/2024/08/property-pulse-rates-to-the-rescue
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