It was one of the worst-hit by COVID-19
Despite taking a hit from the COVID-19 pandemic, the Queenstown property market has remained resilient, with confidence growth and large infrastructure spending underway, according to Colliers International.
Heather Beard, a registered valuer and consultant at Colliers Queenstown, said Queenstown was one of the worst-hit by the pandemic due to border closures and economic uncertainty since the lockdown. However, its property market remained resilient, with current market sentiment and council population growth projections showing confidence in the region’s longer-term prospects.
“The silver lining is government investment in the region’s much-needed infrastructure projects. The $85 million earmarked for ‘shovel ready’ projects in Queenstown will assist in recovery and further growth following the international border re-opening,” Beard said.
“In the short term, reliance on domestic travel and related spending levels, plus a tightening on funding, will likely continue to create a degree of uncertainty in the property market.”
Colliers Otago managing director James O’Hagan said the expected housing market downturn did not materialise, at least not to the extent predicted.
“Sales volumes are down for the year due to periods of inactivity, but market transactions have been picking up significantly post-lockdown. The market has been buoyed by low-interest rates and pent-up demand, particularly from first-home buyers, holiday home investors, and people relocating for lifestyle reasons,” he said.
The industrial sector remained a sought-after investment in Queenstown and nationwide as investors gravitated towards “essential business” tenants. Meanwhile, rental affordability has been a hot topic in Queenstown, with the absence of international tourists in the CBD.
“New leasing activity appears to be at pre-COVID levels and demand in the prime retail area is continuing, with some tenants taking the opportunity to reposition or enter the market,” O’Hagan said.
