The Upper Clutha may not be seeing the same property price freefalls as much of the country but a significant year-on-year drop in property sales was reported last month.

“Compared to the 112 properties that were sold in October 2021, property sales were very slim in Wānaka with just 33 selling in October 2022,” Proppys real estate agency director Hannah Walker said.

September 2022 was also a low month for sales, with around 40 sales compared to 118 a year earlier. 

Other signs that the local market may be changing is October’s median sale price for Queenstown Lakes, which fell 9.8 percent to $1.24M.

This bucks the recent trend: prices have held strong in the district for the most part this year while they have fallen fairly consistently in most other regions.

Real Estate Institute of New Zealand (REINZ) regional director Gail Hudson has credited the resilience of the local market to a handful of factors, including the desirability of Queenstown Lakes for deep-pocketed buyers who do not face the same financing restrictions as many purchasers.

While the median price fell in October, the QV House Price Index showed the Queenstown Lakes average house price value rose to 2.9 percent in the three months ending in October.

This was the “only exception” to the market’s national “downward trajectory”, QV chief operating officer David Nagel said.

Gail said another positive sign was that agents were still reporting high levels of interest in Queenstown Lakes in October, including from prospective buyers from the bigger cities.

“There was also some enquiry from Australia, with holidaymakers viewing properties when in the region — with the intention of buying,” she said. 

The most significant impact on the Queenstown Lakes market currently, Gail said, is rising interest rates.

These are “causing hesitancy amongst buyers and concern amongst vendors that the value of their property will decline”. 

Hannah also pointed to rising interest rates as a key issue holding prospective buyers back.

“...on the ground buyers are not jumping to buy properties and lots are still holding back [on] waiting to buy due to increased interest rates and uncertainty in the market around them.”

PHOTO: Wānaka App