Queenstown pulls Otago to record


Queenstown’s skyrocketing house prices are giving sellers gains of $4000 a week – or more.

Real Estate figures released yesterday showed Queenstown booked a 31 per cent increase for April on a year ago, up by $207,500 to $877,500.

Spread over the year, that equates to a gain per month of about $17,300, or $3990 per week.

That pulled Otago to a record median price, up 9 per cent to $284,000.

The national median price was $490,000 for April, up $35,000, or 7.7 per cent, on April last year but down 1 per cent from March, data from the Real Estate Institute of New Zealand showed yesterday.

The strength of the market is being driven by a chronic lack of supply, REINZ chief executive Colleen Milne says.

In Central Otago, including Queenstown, spokeswoman Gail Hudson says a dramatic lift in median price in March has “bedded in” during April.

“The situation across the region remains tight, with a 44 per cent drop in inventory over the past 12 months.”

REINZ regional spokeswoman Liz Nidd, of Dunedin, says Otago’s record is driven by strong first-home buyer demand and investors seeking better rental yields.

“Demand is coming from both locals and New Zealanders returning to the region from overseas.”

Otago Daily Times