Arrowtown’s increasing desirability, combined with a shortage of sections, is pushing property prices to record levels.
According to Quotable Value, the median house value is a staggering $1,342,650.
Luxury Real Estate New Zealand director Terry Spice says there’ve now been 18 or 19 sales of over $2 million, “which is really quite a milestone”.
He calls Arrowtown “an adult playground” because of its sophisticated restaurants, bars and golf courses.
In some cases, he says buyers have sold up rural blocks to move there.
There’ve been no $3m sales yet, but Spice’s Arrowtown-based agency recently sold a section “in a very prestigious street” for just over $2m.
His firm’s listing a brand-new, premium home in the new Linksgate subdivision, which has a replacement value of about $2.5m, and is about to list a contemporary home in Reid Crescent, just outside the historic zone, which is likely to sell for $2m-plus
Long-time local Ray White principal Richard Newman says sales for the year ended November were 17.1 per cent down on last year, but prices, at $1,075,509, were 3.7 per cent up.
Section prices declined 17.6 per cent to $720,000, but only seven sales were recorded.
Titles for other section sales are yet to come through.
These include the 20-lot Arrowfields subdivision, off McDonnell Road, where Colliers International’s sold 12 sections ranging from $500,000 to $595,000.
Colliers has also sold eight sections, with another under contract, at the 12-lot Three Mayors Ridge, in central Arrowtown, for between $700,000 and $915,000.
Meanwhile, all but two of the 28 sections in Linksgate’s first stage, near Butel Park and Millbrook Resort, have sold for about $650,000 a pop.
Newman says apart from about 12 more sections in Linksgate’s second stage, probably 20-odd more at Arrowfields, and possibly a Queenstown Lakes Community Housing Trust subdivision at Jopp Street, the town will be virtually full.
That’s because the town has a proscribed urban boundary.
Newman notes that $2m-plus sales were quite rare only a few years ago.
He says they’re occurring mainly in the Cotter Avenue/Advance Terrace ridgeline, overlooking The Hills golf course, and in the historic zone where subdivision’s mooted in the proposed district plan and where it’s a short walk to town.
Many of the new buyers aren’t living full-time in Arrowtown, he adds.
“In effect, this market has priced a lot of people out of Arrowtown.
“You’re getting a different demographic of people coming to live here.”
With fewer young families, Arrowtown School’s roll is dropping.
“The community is not falling apart but it’s not what it was. Clubs are finding it hard to get people to join, and the fire brigade’s struggling for numbers in the daytime.”