New loan-to-value ratios (LVRs) are to blame for Queenstown’s sluggish real estate market, a realtors’ spokesman says.
There were only 53 residential sales last month, comprising 39 dwellings and 14 sections, on top of only 51 sales in August.
That compares with 62 in July and a seven-year monthly high of 84 in May.
Local Real Estate Institute of New Zealand spokesman Kelvin Collins believes the Reserve Bank’s controversial LVRs introduced on October 1 – restricting low-deposit mortgages – explain the August-September dip.
“The market’s probably consolidating while it gets clear direction from the banks and from LVRs – it’s about understanding the changes and what that might do to the marketplace.
“It’s a bit of winter – and a bit of a holding pattern while waiting for a clearer direction.”
September’s median dwelling sale price was $500,000, up from $420,000 in August.
The top price of $2,450,000 was paid for a lifestyle property at Dalefield.
A central Queenstown studio apartment fetched the lowest price – $110,000.