While there were record property prices across the Upper Clutha in 2021, sales volumes dropped towards the end of the year and increased lending restrictions are affecting some buyers.

At the end of 2021 Wānaka’s median house price reached $1.33M - a 46.6 percent increase on a year earlier. 

But interest rate hikes and tighter lending rules started to have an impact towards the end of 2021 and that may carry on into 2022.

“More contracts are conditional on finance at the moment as opposed to unconditional due to more challenging lending restrictions,” Proppys real estate agency co-founder Hannah Walker said.  “Houses are also then taking a little longer to sell because of this.”

“Buyers are having their bank accounts scrutinised thoroughly so my advice to buyers is if you are looking to buy in the next 3-6 months take note of what you are spending – the banks will look to see how many coffees you buy every week.”

Across Queenstown Lakes, the sales count dropped by almost 10 percent in December.

Real Estate Institute of New Zealand (REINZ) regional director Gail Hudson said Wānaka’s level of real estate activity and enquiries has remained steady at the upper end of the market, which is consistent with Hannah’s experience at Proppys where the year has begun with increased listing and enquiries, and a lifestyle property recently went under contract after a strong multi-offer with back-up offers in place.

At the lower end of the market, things are not so clear, but the district’s continued popularity with people living outside the region could help keep it buoyant.

“As summer comes to an end, the national tourist market will begin to dissipate, but - with the Queenstown-Lakes District remaining an attractive option to out of town buyers - many remain hopeful that upward momentum will continue throughout summer,” Gail said. 

The combination of increasing property prices, interest rates rising and lending changes are making it increasingly difficult for first home buyers to get on the property ladder, Hannah and Gail said.

In December 2021, 47 properties were sold in the Upper Clutha. With a combined value of more than $64M, they included 38 houses or apartments, seven sections and two lifestyle properties.

PHOTO: Wānaka App