The Wanaka property market continues steadily with a good lift in sales volumes for the month of May .
As predicted buyer pressure has continued, and with continued reduced property for sale, this has resulted in significant increases in median values over the last six months. None more so than in the Central Otago Lakes region with median house prices up between 15% in Wanaka to 25% in Queenstown and Cromwell.
Demand in Central Otago is still greatest in the family sector due to employment growth, although demand for holiday homes is also on the rise, with quality, well located property being sought after. Investors are competing with first home buyers, although the first home buyers are generally prepared to pay more. Developers have started buying land for redevelopment, although titled property to satisfy demand is still probably a year away so the current under supply will likely remain in the foreseeable future.
The general feeling is that low, stable interest rates, and a move to improve the quality of rental property, will see a two-tier market continue to evolve. There will be good demand for tidy, well-located property, although those with deferred maintenance will struggle to attract interest unless perceived as a bargain. This will also be experienced at the top end of the housing market, with well-designed, quality property achieving premiums. Looking at the outlook, it is likely that the Reserve Bank’s tightening on lending criteria will have positive long-term impact and give buyers confidence that the market will continue to grow, although at a slower pace.
The Wanaka property market has continued to rise steadily in volumes and positively in values to date in 2017.
The buyer profile is also also changing - 35% are those moving around inside the town, slightly up from last year. Overseas sales have more than doubled (9% of volume compared to 4% in 2015). Sales to North Islanders (mostly Aucklanders) are up from 13% to 19% this year, and sales to Cantabrians have seen a small lift up 3% to 22%. Otago buyers (outside Wanaka) have halved, buying just 12% of properties, falling from a lofty 25% in the same period last year. More South Island buyers overall are also keeping their wallets closed. A shortage of available properties to buy is still putting pressure on prices; demand and competition to secure property is higher than anyone can remember. Rental accommodation is still at a premium for construction, trades, hospitality and associated staff.
Auctions continue to be the best performing method-of-sale for our buyers and sellers in Wanaka, in preference to the tender process or marketing with a price. The feedback is that our auctions are more transparent and less disappointing than attempting to negotiate with individual parties behind closed doors. Our recent auctions have drawn good crowds with successful results and our personal success rate for sale at auction is 95% with 90% selling under the hammer on auction day.
On a more personal note, our consistent ranking among the top twenty agents in Regional South Island has been agreat achievement for us throughout 2016/17, placing us among the top 10% of New Zealand's largest real estate agency network. We remain the Number One agents in our Wanaka office and would like to say thank-to all our past and present clients for their continued support of the service we provide.
As we continue to see very frustrated buyers at the shortage of existing homes and sections in the Wanaka area, we encourage anyone planning to sell a property to discuss with us where your investment may be positioned in the market. We can also provide a free & informative report on specific properties, so please contact us today and have a chat about how we can help you achieve a great result!
Guy & Sheryl Alty
For further up-to-date information on what is happening in the NZ property market visit http://unconditional.co.nz/nz-property-report-data/