|Queenstown was the only main part of the country to really see any noticeable drop in property values after lockdown, but those falls have now been reversed. The latest report out today (January 21) from CoreLogic Senior Property Economist Kelvin Davidson says one key reason for this is that, despite high rates of new construction, growth in the stock of dwellings over the past five years has still been below housing demand/need.
He says even so, the prospect of a ‘lost summer’ for the tourism industry means that we probably still need a cautious view about Queenstown’s property outlook.
|“It would’ve been hard to have missed the fact that NZ’s housing market has not only avoided a downturn post-COVID but has actually seen rapid growth. Even Queenstown, the one key part of the country that did experience noticeable falls in property values post-lockdown, has also turned around again.”
So what has recently happened in that part of the country?
“First, let’s look at the numbers. From a peak in May ($1.22m), average property values in Queenstown fell by 7% over the next three months to hit $1.13m in August. By December, however, those losses had been almost fully recouped, with average values standing at $1.21m. That actually represented a small rise from 12 months ago, of 0.3%.”