Queenstown puts it in perspective

Median residential property prices in Queenstown and Central Lakes District soared 31% in June, according to the latest figures from the Real Estate Institute (REINZ).

Tuesday, July 15th 2008, 9:32AM

by The Landlord

The median stood at $580,000 compared to $442,500 for the same time last year. It also took fewer days to sell – 70 in June this year, compared to 87 last year.

Yet the spokesman for the Central Otago Lakes District Adrian Snow of the Professionals, reports buyers are still taking time to make decisions. And there is a growing pool of buyers looking for bargains.

“Fundamentally the confidence in real estate by both purchasers and owners appears good. But initiating action is the challenge faced by real estate agents today. Pricing of properties remains under downward pressure, with only a few exceptional properties being able to maintain the peak of market pricing.”

Snow says mortgagee sales have also increased for residential properties, though there are no statistics kept on these sales.

He says the property development sector is facing significant pressure and is in oversupply. “Few projects can continue as the financing and credit world sort out their woes. There appears almost no funding for good, well-planned and feasible projects. This retrenchment in the development sector suggests a constriction in supply for future land, homes and commercial property may be imminent.”

He adds that offshore buyer interest remains well down, but the Australians with their strong currency continue to be the dominant among offshore purchasers.

Snow believes opportunity for purchasers continues to be the best that Queenstown has offered for many years.

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