Cheap pricing has spurred an impressive 34 section sales at Queenstown’s Jack’s Point over the past two months.
The sales come off the back of a marketing campaign for a 19-section “mega land sale” auction.
The vendor, a subsidiary of debt-stressed Allied Farmers, set reserve prices at or below 50 per cent of their rateable valuations.
On March 20, the day of the silent auction, listing agency Ray White Queenstown put away eight of the 19 sections.
Seven of the eight sold uncontested at the reserve price – the average was $185,000 with the lowest at $165,000.
Since the auction, another five of these ‘Neighbourhood 4’ sections have sold, plus four that weren’t offered at auction.
Seventeen sections at the adjacent ‘Neighbourhood 5’ – also known as The Highlands – have also sold since the marketing campaign began in mid-February. They’ve each gone for $200,000-plus.
Wayne Cafe, sales manager for Ray White Queenstown, which has sold 23 of the 34 sections, says they represent “incredible value for money”.
The sections were originally listed five years ago for between $420,000 and $650,000, and were more recently priced in the mid to high $200,000 range.
The fully-serviced sections, sited in an exclusive subdivision sandwiched between the Remarkables mountain range and Lake Wakatipu, average about 1000 square metres – equivalent to the classic Kiwi quarter acre.
Cafe says he expected more interest on auction day.
“But there’s a lot to learn about Jack’s Point and it just takes people a bit longer to get through the information they need to be familiar with.”
All buyers to date have been new to the local property scene.
They hail from Invercargill, Dunedin, Auckland, Taranaki, Singapore, India, China, Dubai, Melbourne and Sydney, plus two Queenstowners.
“Most are Kiwi expats or Aussies,” Cafe says.
“I think some people thought, ‘I’ve always wanted to live in Queenstown, let’s grab a section while the going’s good and we’ll build there when we’re ready’.”
Cafe suggests buyers will build a mix of permanent and holiday homes.
“I’m sure we’ll see, over the next year, eight to 10 houses get started.”