Arrowtown’s first new subdivision for about 15 years is hitting the market as news comes that the historic township has become Queenstown’s second million-dollar suburb.
Linksgate – developed by Christchurch-based Suburban Estates – comprises 24 sections off Manse Road.
They’re selling for between $599,000 and $699,000.
Company manager Tracey Watson says five sections are already under contract.
Buyers are from the lower South Island – “we made a point of making sure that local people were aware of it first”.
Suburban Estates has owned the land for some time but following the 2011 Christchurch earthquake concentrated on residential development in its home patch.
Sections range from 575 to 837 square metres.
After work started in April, the company redesigned the subdivision to keep a row of trees it originally earmarked to remove.
Watson says schist walls under construction will be a stunning feature.
She expects the first titles to be issued around next April.
Subject to consent, a second stage comprising a few sections towards Malaghans Road may be released later.
Meanwhile, Quotable Value says Arrowtown’s become Queenstown’s second million-dollar suburb after Kelvin Heights.
Median values rose 20.8 per cent over the past year to $1,003,000.
Spokesperson Andrea Rush says: “Arrowtown value growth has been compounded by ring-fence zoning which means there is no more land becoming available in the town and the only way to intensify there now is to build up.”
Ray White Arrowtown boss Richard Newman says: “I said 10 years ago it would be a ‘Little Aspen of New Zealand’, and that’s happened.”
Linksgate and a pending 20-odd subdivision on McDonnell Rd will help alleviate demand, he says, along with the possible infilling of the town’s historic-zoned land, as proposed in the new district plan.
“But until council get their head out of the sand, open up some more land and give us 50 to 100 sections, prices will stay high.”