Queenstown is booming. A surging tourism sector drawing in more workers, coupled with an increasing wave of lifestylers and rising investor demand has led to the tightest residential market conditions many can remember.
Strong population growth has seen demand for both rental accommodation and housing lift sharply, triggering a number of sizeable new residential projects, the largest being the soon to be released Hanley’s Farm. Recent unprecedented buyer demand has resulted in a strong run up in median house prices, up 30% to $800,000 over the past 12 months to March 2016, second only to Auckland at $820,000.
Queenstown recorded the country’s strongest population growth over the past 12 months at 4.9%, with an estimated resident population now totalling 32,400. Much of the increase has been as a result of people moving into the area, both from within New Zealand and off-shore...read more...read more.
Hanley's Farm The first stage of one of the largest projects, Hanleys Farm, is to be released shortly. The development is across the road from the successful Jacks Point development, and will provide a proportion of affordable housing targeted to first home buyers. The first release will include 100 sections and is planned to go on sale in June 2016 with agency reports confirming strong interest...read more.
Queenstown’s growing resident population and visitor numbers, coupled with further growth potential has given confidence to national retailers to invest and gain representation in Queenstown, resulting in a sizeable number of retail developments emerging over recent years. As the expansion of the Central Business District (CBD) is limited due to physical constraints and planning regulations, new retail growth is mainly taking place in the Frankton area which is approximately 7 km from the CBD...read more.
Most office space in Queenstowns CBD is located above retail shops. Underlying market conditions suggest further upward pressure on office rents over the next 6-12 months as continued growth in business formations/expansions adds to demand pressures. Currently there is little new office supply in the CBD. A lack of parking is also exacerbating the situation. This is creating opportunities for new office space development in some of the out-of-town projects for occupiers who do not need a CBD address...read more.
Historically the industrial heart of Queenstown was the Glenda Drive Industrial Estate in Frankton which has largely reached capacity. Further capacity is now emerging in the adjacent new Shotover Park business and industrial precinct. Agency feedback indicates a sharp increase in land prices in Shotover Park over recent years due to the shortage of industrial zoned land and growing demand pressures...read more.
Expansion of Town Centre
The recent rezoning success of Queenstown Lakes District Council (through the Environmental Court) to rezone 14.5ha land in the heart of Queenstown centre from residential to town centre zoning. A town centre zoning allows land to be used for houses, hotels, office, bars, restaurants and shops (excluding big box retail)...read more.