A developer has started building a $15 million apartment complex at Queenstown’s Arthurs Point after achieving phenomenal pre-sales.
Aedifice Queenstown Ltd, owned by local Tim Medland and two New Zealand-resident French partners, last year bought the 1.18 hectare site, between Nugget Point Hotel and the Onsen Hot Pools accessway, for about $3m.
It’s pre-sold 36 out of 48 apartments and nine out of 11 sections for its La Residence du Parc development.
Apartments – mostly two-bedroom, two-bathroom – have fetched between $600,000 and $800,000, plus GST, and sections have sold for $495,000, including GST.
Medland says apart from two Australians, a Tahitian and a New Caledonian, buyers have all been Kiwis, including locals.
“Among the buyers are people who have made money out of the growth of Auckland,” he says.
Some buyers also bought into Aedifice’s first two local apartment developments – 22 Hallenstein, in central Queenstown, and La Residence du Lac, off Frankton Road.
With sufficient pre-sales, work started on its latest apartment complex – split between two four-level buildings – last week.
The contractor, Hawkins Construction, New Zealand’s second biggest builder, has also been building the new Wakatipu High School at Frankton’s Remarkables Park.
Medland: “The bigger the project, the bigger the company you want to work with – it’s just a matter of risk management.”
The apartments – designed by Queenstown’s Koia Architects – are due for completion next August/September.
Medland expects buyers will rent out their units for short-term holiday accommodation, due to the demand.
It also helps that the area’s zoned for visitor accommodation.
The units have been deliberately designed for hard-wearing use, Medland says, with the likes of stone benchtops and tiled bathrooms and showers.
Titles for the apartment blocks and two roadside sections are due later this month, while titles for the other sections, all with spectacular Shotover River views, are expected in January.
Medland says section buyers are more likely to be owner-occupiers, “although, because of the zone, they could probably short-term them as well”.
He believes the secret to La Residence du Parc is not only a sunny site, but also the growing attraction of Arthurs Point.
“It’s the proximity to downtown Queenstown, to Coronet Peak and to Arrowtown, and being away from the congestion around Frankton.
“Within the next two years it will be transformed into a village, and I’m sure there’ll be some commercial activity to back that up.”
Meanwhile, one of Medland’s partners, Francois Beziac, is developing two residential complexes in Auckland.