In our recent discussion with Mark Harris, Managing Director of New Zealand Sotheby’s International Realty, we explored the evolving real estate market in Queenstown.
In our recent discussion with Mark Harris, Managing Director of New Zealand Sotheby’s International Realty, we explored the evolving real estate market in Queenstown. We explored the evolving real estate market in Queenstown. Known for its stunning landscapes, world-class lifestyle, and booming tourism sector, Queenstown continues to captivate both local and international buyers. Mark shared his insights into the current market trends, challenges, and future growth prospects for this sought-after region.
Queenstown is a place that continues to attract attention, and its real estate market is thriving. Mark highlights how the region’s appeal is consistently increasing:
Queenstown continues to be a popular place to live and raise a family… More schools are popping up, infrastructure is expanding, and the area is becoming more cosmopolitan every day.
This transformation is paving the way for a wider range of buyers, from those seeking luxury properties to those entering the first-home buyer market. There is growing optimism about the region’s continued growth, with new infrastructure projects supporting both current and future residents.
Despite the boom, Mark notes that Queenstown faces challenges similar to those seen across New Zealand — primarily the demand for housing far outweighing supply. Even with the increase in development and infrastructure, it remains difficult for the market to keep up with the level of demand from buyers.
Even with the challenges of the pandemic, Queenstown’s property market has shown exceptional resilience. Mark elaborates:
Queenstown has emerged from COVID in really good shape. We’ve got some of the most expensive real estate in New Zealand, and that’s with good reason.
Luxury properties remain in high demand, and international buyers are once again returning to the market. Mark predicts property values could rise by 10% next year, as interest rates stabilize and market confidence rebounds. This rebound could signify another phase of sustained growth for Queenstown.
However, he warns that while growth is expected, there may be a slight downturn in the short term. This is typical of a fluctuating market, with changes in interest rates and broader economic conditions likely playing a role in any adjustments.
One of the most pressing challenges for Queenstown’s property market is the limited housing supply. The region simply cannot keep up with the current demand for homes.
Mark emphasizes the complexity of this issue, explaining how both first-time homebuyers and high-net-worth buyers are feeling the pinch.
While demand remains high, there is an ongoing reluctance from sellers and buyers, contributing to the shortage of homes. As more people consider moving to the region, it’s clear that addressing this imbalance is crucial for sustainable market growth.
One of the solutions Mark proposes to address the housing shortage is an increase in foreign investment. According to Mark, foreign buyers are crucial to New Zealand’s economic growth, as they bring in much-needed capital and help drive both development and job creation.
He also points out that relaxing the current foreign buyer restrictions could have positive effects on Queenstown’s property market. With more international investors, there would be greater opportunities for development and expansion in the region. This would help meet the housing demand and provide more options for both locals and newcomers.
The restrictions on foreign buyers in New Zealand, particularly around residency and investment requirements, create additional challenges. Mark notes that wealthy foreign buyers, particularly from the U.S., often turn to markets like Australia and Canada due to simpler entry processes.
While New Zealand’s strict immigration policies are designed to protect local interests, they also limit the country’s appeal to some of the wealthiest investors. Mark believes that revisiting these policies could unlock much-needed capital that would support housing and infrastructure development in areas like Queenstown.
The future of Queenstown’s property market is optimistic. Mark anticipates steady, consistent growth in the next few years, with an expected 5% growth in 2024, and potentially 6-7% growth by 2026. However, he advises caution, emphasizing that the market should avoid another dramatic boom and bust cycle like the one seen in 2021.
He envisions a market that steadily grows without the erratic spikes and dips, fostering a healthier, more sustainable property landscape in Queenstown.
Queenstown’s property market remains a dynamic and evolving landscape. Despite challenges such as limited housing supply and foreign investment restrictions, there is strong optimism about the region’s future growth. By managing market dynamics effectively, Queenstown is poised to continue thriving as a prime destination for both residents and investors.
Disclaimer:
The information in this article is general information only, is provided free of charge and does not constitute professional advice. We try to keep the information up to date. However, to the fullest extent permitted by law, we disclaim all warranties, express or implied, in relation to this article – including (without limitation) warranties as to accuracy, completeness and fitness for any particular purpose. Please seek independent advice before acting on any information in this article.
