(Photo Above) Ngai Tahu Tourism. FWT Magazine.
The buzz words for the Queenstown property market, according to an annual report launched tomorrow, are “cyclical peak”.
Colliers International’s market review and the outlook for Queenstown, Wanaka, and Dunedin sets the local property clock at the “peak” of 12 o’clock.
Rather than the Doomsday Clock, in which midnight signals the threat of nuclear war, Colliers’ setting reflects what it calls an unprecedented real estate boom, on the back of increased visitor and population growth.
Colliers Queenstown valuation director John Scobie says 12 o’clock suggests there mightn’t be much more value growth in residential property.
“But I guess never say never because we were probably six months ago thinking that these value levels were getting high, so who would have thought that at [entry-level] Shotover Country there’d be a couple of million-dollar sales?
“The big thing for us is there’s nothing on the horizon which suggests the market is going to decline.
“We see another maybe two years, possibly three, of leveling off at the same value levels.”
The report says this is mostly due to Queenstown’s ongoing tourism growth, infrastructure development, economic growth, and construction activity.
It estimates that by the end of this year there’ll be more than $546 million worth of construction underway – comprising $60m in infrastructure work, $186m in commercial projects and about $300m in house building.
“Increased cost of funding – and reduced availability of it, combined with higher interest rates – are the only possible negative factors we can foresee emerging amid the very positive medium-term outlook,” the report says.
Source: NZ Herald