Queenstown Property Still Hot, Despite Foreign Buyer Ban
Demand for homes in Queenstown is as high as ever, despite the 2018 foreign buyer ban.
Changes to overseas investment laws last year stopped foreigners not intending to live in New Zealand from buying most types of homes. New apartments in large developments and multi-storey blocks bought off plans are exempted. People from Australia, Singapore, permanent and those holding a resident visa (and present in the country for 183 days in the past year) are still able to buy property.
Ron Blunden, Owner of Tall Poppy Queenstown, says so far the new laws have had little effect on the majority of the market. Data from QV shows the average house price in the Queenstown Lakes District was $1.193 million in December 2018, up 7.3 per cent from December 2017.
“We’ve seen a slow down on houses at the top end - worth $2 million or over, but the majority of homes on the market (around $1 million value) are still in demand from families, and people wanting to relocate to Queenstown. We also have a lot of interest from buyers in Australia and Auckland, keen to secure their own piece of paradise,” says Ron Blunden.
A drop-off in investors in Queenstown and rising prices in what was traditionally family-friendly suburbs is affecting local families.
“You’re now looking at spending at least $1.2 million to buy a home in Arrowtown, and that’s a house that will need a lot of renovation and investment. That’s unattainable for most local working families, who are either selling up and moving to places like Dunedin, or new suburbs like Lake Hayes and Shotover Country”.
Donna Harris, Tall Poppy Queenstown says people are lining up to buy properties in Queenstown’s family-friendly subdivisions.
“We recently had a property in Lake Hayes sell in seven days - 43 people went through in the first open home with nine interested parties, and we still have more people who are looking for the same type of family home”.
The first twelve months in Queenstown have been busy - and it is one of our fastest growing franchises.
There’s no doubt it’s one of the most desirable places to live in New Zealand - and fees for real estate agents are amongst the highest in New Zealand. We are totally committed to Queenstown, especially when it comes to offering fairer fees and a better deal to sellers”.
Here’s a look at some of the great family homes on the market: