A new report from Colliers International says the popular South Island town has some strong trends in the medium term but warns of affordability issues
A new report from Colliers International says the popular South Island town has some strong trends in the medium term but warns of affordability issues.
Increased visitor and population growth has seen Queenstown’s property market enjoy an unprecedented boom, the report says, and is supported by significant expansion in the commercial and residential construction sector.
Speaking at an event to launch its report, Colliers Queenstown valuation director John Scobie said the market has seen a shift in dynamics in recent years.
“Queenstown is traditionally a volatile real estate market of peaks and troughs every eight to 10 years," says Scobie.
"The resort town has now matured with a growing permanent population, often driven by a lifestyle choice and perceived good employment opportunities. This is underpinned by a strong tourism dynamic which is boosting businesses and support industries.”
The strength of the market should maintain high property values in the short to medium term however residential rental demand and rising land and housing prices, means many are already being priced out.
Housing demand isn’t the only challenge, the popular resort town desperately need hotel and motel rooms for the increasing influx of visitors; an estimated 300 additional rooms are needed each year to keep up with demand.
Although construction is strong in both housing and commercial sectors, there is a need for infrastructure projects to be stepped up to ensure the town can cope with its growth.
“We want to attract more tourists and residents, but making sure our infrastructure, accessibility and housing market can cope with this unprecedented growth is a key priority. Creating additional residential supply may not necessarily be the answer,” says Scobie.
Increased visitor and population growth has seen Queenstown’s property market enjoy an unprecedented boom, the report says, and is supported by significant expansion in the commercial and residential construction sector.
Speaking at an event to launch its report, Colliers Queenstown valuation director John Scobie said the market has seen a shift in dynamics in recent years.
“Queenstown is traditionally a volatile real estate market of peaks and troughs every eight to 10 years," says Scobie.
"The resort town has now matured with a growing permanent population, often driven by a lifestyle choice and perceived good employment opportunities. This is underpinned by a strong tourism dynamic which is boosting businesses and support industries.”
The strength of the market should maintain high property values in the short to medium term however residential rental demand and rising land and housing prices, means many are already being priced out.
Housing demand isn’t the only challenge, the popular resort town desperately need hotel and motel rooms for the increasing influx of visitors; an estimated 300 additional rooms are needed each year to keep up with demand.
Although construction is strong in both housing and commercial sectors, there is a need for infrastructure projects to be stepped up to ensure the town can cope with its growth.
“We want to attract more tourists and residents, but making sure our infrastructure, accessibility and housing market can cope with this unprecedented growth is a key priority. Creating additional residential supply may not necessarily be the answer,” says Scobie.
