Dunedin council’s Jack’s Point sell off

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Keen interest is expected in two major blocks of residential subdivision land released for sale at Queenstown’s Jack’s Point.

Colliers International’s local office today launches its marketing of both a 24-lot titled block and an adjoining 49-lot consented block.

The vendor is Delta Industries Ltd, a Dunedin City Council-owned company which paid $8.82 million for about 100 Jack’s Point lots in 2009.

A year earlier, the same company also paid $5.3m for residential subdivision land at Luggate near Wanaka.

Last year, however, Delta wrote down its combined investment by $7.5m to reflect a drop in property values.

Dunedin City Holdings chairman Denham Shale blamed the world economy, which had “bailed out” and taken property values with it, he told the Otago Daily Times – although Delta had benefited from infrastructure work at the subdivisions.

The two Delta land purchases – which were investigated by the Auditor-General – were “an unfortunate decision but that is very much in hindsight”, Shale said.

Delta’s Jack’s Point land is north-east of the clubhouse and Lake Tewa.

The two parcels are being offered jointly or as separate parcels.

Neighbourhood 3, which is closer to Lake Wakatipu, comprises 24 developed freehold titles around Cunninghams Drive – another 25 there have already sold. 

Nineteen of the sections are between 608 and 751 square metres.

The other five sites are larger – up to 1257sq m.

Other Jack’s Point sections around 700sq m have been selling this year for about $225,000.

The second Delta parcel is Neighbourhood 2B off Morrison Drive, comprising 49 undeveloped but consented lots spread over 4.7 hectares.

Council development contributions have been paid, leaving only civil works and the issuing of titles to be completed.

Local Colliers director Alastair Wood: “We expect to receive interest from developers, equity land bank investors and joint venture partners looking at one or both parcels.”

Neighbourhood 3 presents a buyer with an immediate on-sale cashflow opportunity, Wood adds.

Jack’s Point is the fastest-growing residential community in Queenstown and one of the fastest-growing in New Zealand, Wood claims.

“Demand is being driven by buyers from the local area as well as around NZ and Australia who are looking to build and own a house that enables them to enjoy the lifestyle available in this part of the world.”

Jack’s Point section sales last year were up more than 30 per cent on 2011 and this year’s total volume is expected to be 40 to 50 per cent higher than 2012, he says.

Wood believes Jack’s Point has accounted for about half the total sales of standard-sized residential lots in the Wakatipu over the past three years and currently more than 20 per cent of Queenstown house-building consents.

Jack’s Point’s population is forecast to hit 1000 by 2016 and 4000 by 2025.

Wood: “This is a must-see for investors wanting to secure a slice of prime development land in Queenstown and take advantage of the strong demand which is expected to continue.” 

The sale is by deadline private treaty, closing November 14 if not sold prior.