A house and land package in Queenstown’s newest entry-level subdivision is being advertised for $755,000.
In another sign of the resort’s housing crisis, that’s 68 per cent higher than the country’s median house price of $450,000.
A building company is advertising the 360 square metre section at the Bridesdale Farm subdivision - a special housing area aimed at addressing the resort’s housing affordability problem - on behalf of a third party owner.
If the sale goes ahead as advertised, a 124sq m home with a single garage would be built on the land.
That surprises Queenstown Lakes Community Housing Trust boss Julie Scott.
“That’s certainly a big change from the $450,000 land and house package that Bridesdale was originally marketing.”
She’s disappointed the entry-level price for a home in Queenstown is reaching that level.
“It really highlights the crisis we’re in, and opportunists are taking advantage of that market.
“People have nowhere to rent and no security of tenure, so they’re trying to get into any sort of ownership.”
Mike Greer Homes Wanaka is advertising the package, and will build the two-storey, three-bedroom home earmarked for the section.
General manager Tane Tawera confirms the owner paid about $260,000 for the land originally, but its value is “a lot higher” now.
“They’re wanting a bit more for it, with the current market.”
The house chosen for the section is among the more expensive types allowed in the subdivision.
Tawera’s company bought five sections at Bridesdale Farm – it has sold four and the fifth is under offer.
He agrees the market is tight for affordable homes in the district.
“Unfortunately, it’s not getting any cheaper at the moment.”
Bridesdale Farm developer Chris Meehan didn’t want to comment.
His 134-house subdivision, which borders Lake Hayes Estate, was the to gain government approval as a special housing area.
Queenstown council-appointed commissioners gave it last month.
REINZ figures for February show Queenstown’s median house price rose 37.6 per cent on a year earlier to $782,000.
The Massey University Home Affordability Report, released last week, rates Central Otago Lakes as the second least affordable region in the country behind Auckland.
The report says the region is one of only four where housing affordability deteriorated during the first quarter of this year.
Otago Daily Times