QUEENSTOWN: NZ'S BOOM TOWN
Thursday September 17th, 2015
It’s understating facts to say the Queenstown Lakes District region is an x-factor place. It’s New Zealand life with glamour and excitement added in equal measure.
It stands to reason long-term property investors should listen up. If regions were people, the Queenstown one – incorporating Frankton, Arrowtown, Lake Hayes and Wanaka – would be the genetically endowed.
Averaged out, capital gain factors are perennially strong here. Internationally renowned scenic beauty and adventure tourism say why.
High visitor demand has precipitated new flights, more directly from eastern Australia in particular. According to Colliers International 2015 statistics, aviation arrivals in Queenstown have risen by 40% since 2009. Increasingly, “downtime” months no longer happen.
Long-term resident Lindsay Borrie, APL property valuer, can remember years past when in May Queenstown was just waiting for winter fun. Now tourism is less purely seasonal, making it a safer property investment proposition.
Tourist spend in Queenstown alone has been estimated to exceed $1.2 billion annually, with as many as 57,000 in the daytime population during peak months and at least 48,000 in slightly cruisier months. Around 20,000 more people a day are projected in the next decade.
More attractions are on offer, with mountain-biking nudging the top of the list. Skiing was always strong, but that’s winter only, and golfing has become increasingly prominent in summer with Millbrook and The Hills courses attracting golfing tourism.
The main news for property investors is that the entire lakes district region has recently enjoyed several years of strong development, one which has a distance to run before producing any oversupply. Development activity has spurred on lifestyle activity, which has only created more development demands.