Resource consent has been granted for construction to begin at Queenstown’s newest residential apartment/townhouse development - with building scheduled to commence in October following the appointment of a national construction company.
The terraced homes development - named The Alex - is being built on the fringe of Queenstown’s central business district, and will feature 44 multi-level one, two, three, and four-bedroom dwellings.
The Alex development’s bedroom configuration is being jointly target-marketed toward first home buyers and landlords operating in both the short-term and long-term leisure tourism rental sector.
The Queenstown Lakes District Council resource consent allows for units to be let year-round for visitor accommodation. The Alex development sits on the upper side of Hallentstein Street directly across the road from retail amenities and a short walk from Queenstown’s central business district in an area zoned business mixed use/high density residential.
The Alex apartments are priced from only $449,000 for a fully self contained one- bedroom freehold titled apartment, and four-bedroom townhouse for under $1 million.
The project is scheduled to be completed by the end of 2019, and will also feature six street-level retail premises under some of the residential units.
The Alex sales manager, John Greenwood from Bayleys, said that since initially taking the project public in April, 18 units had been sold under contract subject to the granting of resource consent and the completion of ensuing construction. He expected a second wave of sales to be signed up now that resource consent hurdle had been cleared.
“The granting of the resource consent by Queenstown Lakes District Council gives buyers confidence by delivering on the first clause of those sales contracts, and enables work to get under way to meet the requirements of the second clause,” Mr Greenwood said.
“The approval allowing for 365-days-a-year short term rental is a radical concession by Queenstown Lakes District Council - recognising that there is a dire shortage of tourist accommodation in the town. For investors, it underpins the opportunity for generating a healthy rental yield from the property.”
Research shows that Air BnB one-night stays at stand-alone one-bedroom units or apartments in Queenstown range in price from $81 to $450, with properties closer to town or with scenic vistas commanding the higher rates.
The Alex – first proposed under the name The Alexis - sits near the junction of Hallenstein St and Gorge Rd. It is the first residential development in a precinct designated as a Special Housing Area by the Queenstown Lakes District Council. The zoning allows for the fast track construction of residential properties.