Social house a win for capitalism

Good little earner: The Frankton Road house

It’s no wonder Queenstown properties are being snapped up as holiday lets.

A Frankton Road house controversially auctioned off by Housing New Zealand can now make twice as much in one night as it did in a whole week.

The house, which sold for $665,500 in May, has been converted into two holiday lets – a one-bedroom house with loft room, and a two-bedroom apartment.

Both have advertised rates of $270 to $390 per night – more than $5000 a week if fully occupied during peak season.

Housing NZ’s Christchurch-based head spin doctor Glenn Conway says the last tenant’s rent was “probably in the $370 to $390 a week range”.

The property has, though, been extensively renovated inside and out.

It’s being marketed by Awesomely Holiday Homes Queenstown, although it doesn’t own it.

Property records show the owner as Auckland company Apollo Trust Management Ltd, whose sole director and shareholder is accountant Jurgen Herbke.

He couldn’t be reached by deadline.

Awesomely’s marketing bumf details both properties.

The one-bed house has a lounge, wood burner, loft room, master bedroom with ensuite, fully equipped kitchen, free Wi-Fi and private courtyard with BBQ.

It can sleep two adults and two children, the marketing says.

Views Two is across the ground floor, with two bedrooms, a kitchenette, free Wi-Fi and private courtyard with BBQ.

They share a spa pool.

An internal Housing NZ memo, written in November last year, said the Crown entity planned to remove all state housing from the resort, claiming it’s “inappropriate” due to job opportunities and its “lifestyle” nature. But it’s since changed its stance because a waiting list has developed.

Housing NZ now intends to retain its remaining nine properties.

Conway says rent for the Frankton Rd house would now be $420-$450.

The last Housing NZ tenant moved out in April 2015 and Housing NZ justified selling it by saying it couldn’t find a new one.

Awesomely’s had no such problems though – both properties have high levels of occupancy over the holiday period.