Property Sale Figures For Queenstown In February 2014

Date: 25th March 2014 by Tim Medland

The January 14 rebound is followed by an almost even performance in February 2014 with 57 sales compared to last year’s 61 sales. February sales remain slightly above the 5 year average of 52 and also above the ten year average of 55. No big movement either in the average time it took to sell a dwelling, with 38 days in Feb 2014 compared to 34 days in Feb 2013.
The median sales price however, tells a different story at $630,000 versus the February 13 result of $540,000. So what is happening behind the scenes that gives these numbers any sense at all?..2 things:
1. Apartment investment has rebounded with renewed buyer interest in high quality lake front units with a better prospect of returns. These apartments are typically fetching $650,000 or more.
2. Looking at the value of sales so far for 2014, reaching 80.0m, we have a big jump compared to last year’s $57.3m and the previous year’s $61.1m. Clearly the return of demand for first homes, which we observed in January, is now slowing down, in favour of renewed interest for much higher priced properties. Sales in the $450,000 to $650,000 range are on the decline again, and sales above $1m have popped up in a variety of locations in the district.
The main observation here is that sellers in the range between 450k and 650k, traditionally the busiest part of the market, are either seeking a premium sale or choosing to hold on to their properties. This is responsible for the slowing down in sales despite the ongoing high demand and short supply in this sector of the market. In turn this is applying extra pressure on rental prices, and one would believe that ‘something will have to give’.
The 12 months leading to Feb 2014 have seen 615 sales, still tracking well compared to the 586 sales for the 12 months to Feb 2013 and 482 for the previous year.
Section sales remain even and still buoyant with 20 sales in February. This could be where first home buyers are choosing to invest, with a large part of the sections fetching as little as $180k.
In conclusion, as the market swings between the dominance of first home buyers and a different part of the market from month to month, the only reliable trend is that the market remains buoyant, reflecting increased confidence in the New Zealand economy.

Posted in: Statistics