Queenstown property peak expected to be "stronger for longer"
Queenstown looks set to defy traditional property market cycles, with a "stronger for longer" peak, analysts say.
Expansion continues in the property market driven by unprecedented growth in tourism. These predictions match our own for 2016 and our experiences on the ground.
"Prices continue to skyrocket and demand exceeds supply across the board; with some areas, such as rental accommodation and visitor beds, reaching crisis point."
The residential market is very hot with median house prices increasing 23 per cent to over $800,000 in the past 12 months.
In the commercial accommodation sector some hotels and back packers were at 100 per cent occupancy, even in traditional shoulders seasons, he said.
"We are going to run out of accommodation the way we are going at present."
One estimate said Queenstown needed 200 to 300 new rooms to be built every year for the next 20 years to keep up with supply.
Key Queenstown statistics
- Total annual visitors: 2.7 million
- Annual growth: 7.2 per cent
- Guest nights: 3.3 million
- Resident population: 28,000 (Census 2013)
- Average day population 2015: 47,800
- Projected average day population 57,000
(statistics from StatsNZ Commercial Accommodation Monitor January 2016, Queenstown Lakes District growth projections 2015)
Posted: Fri 27 May 2016