Over the last twelve months New Zealand has seen strong net migration, an improving labour market, and the Canterbury rebuild driving a robust domestic economy.
Despite the strong economic backdrop, a lack of inflation in the economy led the Reserve Bank of New Zealand (RBNZ) to cut interest rates in July by 25 basis points to 3%. This saw local banks competing to offer the lowest mortgage interest rates seen in recent years.
Population growth in New Zealand has been bolstered by record levels of migration which has, in part driven significant population growth in Wanaka. New residents are drawn to the town due to its great mixture of outdoor adventures, restaurants, top facilities, unique events and laid back lifestyle. According to Statistics New Zealand the population in Wanaka grew 28.4% between the census of 2006 and 2013 to 6,471, a rate of growth well ahead of the entire country, where for the same period population increased 5.3%. The Queenstown Lakes region is predicted to be the fastest growth region in the country, with mid range projections that the population will hit 50,600 people by 2043, equating to a 70% increase. Read more...
Section sales in Wanaka are undoubtedly on the increase, although the median price for sections has been relatively stable following a decline in both prices and sales volumes post GFC. Apart from the final quarter of 2011 where the median price hit $577,500 which was caused by very small numbers of sales transactions affecting the median, sales of sections have generally been between $275,000 – $295,000 for a number of years since 2008. Sections sell from a low of $175,000 for a 400m² site and progressively increase depending on size, location and views.
The evidence of untitled ready to build on sections is now very real within the Wanaka real estate market. New developments are coming to the market with the likes of the Alpha Ridge series, Kirimoko Park Stage 3 and the soon to be released Peak View Heights project all of which will be sold pending title. All of these developments are receiving a large amount of enquiry and contracts being entered into. Read more...
Read the full MARKETBEAT report here.