Queenstown’s Jack’s Point residential development is posting impressive figures despite battling recessionary times.
About half of Jack’s Point’s 660 titled lots have sold to individual buyers.
To date, 70 houses have been completed, 15 are under construction and another 60 have design approval.
The balance of sections are mostly owned by corporates who bought tranches from the original developers – Fletcher Residential, which sells house/land packages, Allied Farmers and Dunedin City Council contracting company Delta Utility Services.
Jack’s Point general manager Steve McIsaac predicts those remaining sections will be on-sold by late 2014.
“Jack’s Point is supplying 40 per cent of residential lot sales in the Wakatipu and at least 30 per cent of the domestic building going on,” he says.
“The market’s on the up – prices are definitely above $200,000 for a standard residential lot and getting up to $215,000 to $225,000 on average.”
A year ago, Allied Farmers – in an attempt to pay down debt – sold one of its lots within The Highlands for as little as $163,000 as part of a 19-section auction.
Five years earlier, those sections were selling for between $420,000 and $650,000.
Kiwi league stars Stacey Jones and Awen Guttenbeil, for example, bought a section for $573,750 in 2006.
“That was symptomatic of the market at the time,” McIsaac says.
Sections at The Highlands, ranging from 800 to 1300sq m, are now selling for between $215,000 and $295,000.
“I suspect those Highlands sections have the most to gain in terms of capital gain over the next five to six years,” McIsaac says.
Fletcher Residential, which has never discounted, is selling house/land packages for between $775,000 and $835,000.
These homes are part of The Terraces neighbourhood, where 600-800sq m sections are selling for $200,000-$250,000.
In the newly-released Coneburn Ridge, sections – averaging 1200 to 3000sq m – range from $315,000 to $350,000.
“That’s a premium section,” McIsaac says.
“You’re getting bigger sites and a lot more surrounding green spaces.”
Meanwhile, all but four out of 36 exclusive sections at The Preserve, overlooking Lake Wakatipu, have sold.
Those left range from about $1 million to $2.5m.
A unique feature at Jack’s Point is that property owners, through a residents’ association, own their own potable water and wastewater networks.
So far about 130 people live at Jack’s Point.
“While it’s small beginnings in terms of population, the intention – as part of council’s urban growth strategy – is for Jack’s Point to be a major place of settlement,” McIsaac says.
“It’s been identified as a village, similar to Arrowtown, not a subdivision.”
Jack’s Point is part of the Jack’s Point Resort Zone, which also includes the undeveloped Henley Downs to the north and Homestead Bay, to the south.
All up, the zone allows for 1300 residential units, as well as visitor accommodation and commercial activities