New information from Quotable Value (QV) shows the Queenstown Lakes residential property market is “fairly stable”.

Since the district’s last revaluation in 2021, residential property values have increased by an average of 18.3 percent, QV says.

It sounds like a significant increase until it is compared to the previous revaluation, where the average value was found to have increased 50.8 percent in four years.

"Rating valuations are like a snapshot of the market at a point in time,” QV South Island revaluation manager Melanie Halliday said. 

“When these were last set back in 2021, the market was rising very quickly; that growth has continued but at much more subdued levels. 

“Overall the market has been fairly stable since the beginning of 2024," she said.

The average house value in the district is now $2,035,732 and the average land value tops $1M at $1,076,925.

However, these averages are heavily skewed by the upper end of the market, Melanie said.

The median house value in Queenstown Lakes is $1,610,000 and the median land value is $860,000.

"Queenstown Lakes District has seen continued population growth over the last three years,” Melanie said. 

“Market supply was particularly low through 2023, and while listing numbers have steadily increased through 2024, demand for this region remains strong.”

Within the market there are “varying demand levels”, she said.

Properties under $2M are the most in demand, and “substantial growth” continues in the luxury home market.

“There was, however, some softness in the middle of those two markets on the back of high interest rates and softer property market conditions elsewhere in the country."

Commercial and industrial sectors on the rise

QV urban revaluations manager Tim Gibson said commercial property was tightly held in the Queenstown Lakes District, as evidenced by continued rent growth and softening of yields for commercial property, resulting in an average 15.7 percent increase in commercial values.

Industrial markets have also been in high demand, experiencing slightly larger average increases of 21.5 percent for capital values and 31.8 percent for land.

"In both commercial and industrial trends, we have seen increased demand for more affordable and modern facilities available in Frankton and Three Parks,” Tim said. 

“Aside from some softness in the office market, the Queenstown CBD’s prime location and limited supply still attracts yields sub four percent.”

Lifestyle properties lead the market 

Since 2021, the average capital value of a lifestyle property increased by 28.7 percent to $4,386,000, while the corresponding land value for a lifestyle property increased by 27.7 percent to $2,713,000

"The lifestyle market in key locations outperformed other sectors,” QV rural and lifestyle valuer Tim McCaw said.

“Of note for the general market, there was strong growth immediately after the 2021 revaluation which has now been accounted for. The cost to build, development potential, and steady demand for quality properties are the leading factors influencing values."

He said lifestyle property made up a smaller component of the market yet made up a large part of the luxury property market in the district, with around 2,157 lifestyle properties. 

"This sub-sector of the lifestyle market has performed more consistently on the back of strong demand for superior lifestyle properties."

Rural sector shows moderate growth

There are limited rural properties in Queenstown Lakes District, with approximately 300 properties in total. 

"Queenstown Lakes District is typically impartial to the wider issues affecting the rural sector in New Zealand,” Tim said. 

“This is due to these properties being influenced by a mixture of amenity values, lifestyle factors and development potential. 

“These influences have led to increases of 13.8 percent on average for pastoral property and 22.8 percent for horticulture.”

Property owners will receive their new rating valuations in the mail starting next week.

See also: New rating values next week

PHOTO: Wānaka App