Queenstown Real Estate – Aedifice

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QUEENSTOWN PROPERTY DATA FOR JUNE 2013 MAKES INTERESTING READING

Interesting trends for Queenstown property stats In July as the dramatic changes observed in May 13 compared to May 12 did not repeat themselves.   However we are still seeing positive data from a seller’s perspective. Whilst it is not good news for buyers it is good to see on going strength in  this industry which is the second most important for Queenstown , after tourism.

  • The number of sales only increased by 2 compared to June last year, from 42 to 44, this is what we mean by a sighting correction compared to the large increase in sales experienced in May .
  •  This is generally in line with the June averages for five and ten year where the number of Sales are 41 and 46 respectively
  •  The biggest positive trend breaker is the average number of days it took to sell a Queenstown property in June 2013 compared with June 2012: a whopping  34 days drop, from 81 to 47 days
  •  Prices are still on the rise, by $17,500 compared to last year’s June, with a median price of $517,500 , up from $500,000 in 2012.
  •  The 6 months trend for the number of sales in Queenstown is also trending up, by 23 properties, from 301 last year to 324 this year. Note also the large  increase in comparison with 2011 : 102 more properties sold , up from 236.
  •  The 12 months to June this year saw an increase of 89 sales, from 520 in 2012 to 609 in 2013, and an impressive 161 increase in sales compared to 2011.
  • Also important to note is that despite the number of sales increasing, the total value of sales in June 13 compared to June 12 is DOWN by nearly 20.00m, indicating that home buyers at the lower end of the market are much more active this year.

For full report on Queenstown property sales with graphs go to our source www.queenstownrealestate.co.nz/statistics.html

WHAT TO EXPECT IN THE CURRENT QUEENSTOWN PROPERTY MARKET

* With Auckland having experienced a 15% increase in values over the last 18 months this will historically flow through to the Queenstown market over the next 24 months

* NEW properties – houses and apartments – are the prime focus for investors and buyers as building costs will continue to rise long term in NZ

* Much of the post GFC apartment stock in Queenstown has been sold as apartment complexes with high Body Corporate fees and holding costs disappear from the market

* Large Hotel Apartment buildings are now out of vogue with investors searching for and buying new , affordable , freehold apartments unencumbered by management agreements

* Residential sales in the Wakatipu in May 2013 were the highest of any month since October 2007. This is particularly significant when you consider that may is traditionally a fairly quiet month in Queenstown Real estate.

* See  monthly trends for Queenstown property here – Source: Mountain Scene.

                   THE 2 MOST RELEVANT “HEALTH CHECK” POINTS IN THE QUEENSOWN AND NEW ZEALAND PROPERTY MARKETS

1. The fast increase in asking price, 1.7% just in May 2013 nationwide, shows that sellers have renewed confidence in their ability to sell their homes.

* This not good news for buyers as all the indicators point toward this trend continuing and even gathering pace: The ongoing increase in building costs is just one of them.

2. Inventory levels are falling to a record low. This indicator relates to the level of stock in unsold homes for any period of time. low levels mean that the balance between supply and demand is seriously tilted in favour of sellers.

* These 2 major effects are compounded by the fact that the number of listings, although on the increase, has not followed the steep growth curve of demand, including first home buyers.

See full New Zealand property indicators here – Source : Realestate.co.nz.