Another month has gone by where the property market has continued to out-perform expectations.

According to the Real Estate Institute of New Zealand (REINZ statistics), there were 75 sales in the Upper Clutha in September 2020 - twice as many as the same month last year.

“The number of sales and the total dollar value were twice what they were in September 2019,” First National Wanaka sales manager Lynette Winsloe said.

She attributed the increased activity to the extremely low interest rates currently available.

“Current rates are at their lowest levels since records began,” Lynette said. 

“Another factor is those consumers having additional cash available due to a lack of international travel. Returning expats have been an additional bonus.”

Prices have increased substantially: The median price for a house in Wanaka was $1,050,000 in September 2020 ($995,000 in September 2019) and the median price for sections rose substantially to $570,000 (from $399,000 in September 2019).

“When you then add in high levels of confidence in the housing market, the removal of the LVRs [loan value rations] back in March and people’s fear that prices are just going to keep increasing in the future, then this explains why people are going to such lengths to secure a property now,” Lynette said.

Forty-three houses sold during the month, ranging from $635,000 for a two-bedroom house in Lake Hāwea right through to $2,500,000 for a substantial 362m2 home on 4021m2 in Beacon Point Road.

There were 32 sections sold, starting at $275,000. The highest price paid for a section in September was $1,292,500 for a 1214m2 site in Alpha Ridge. 

Lynette said there’s no reason to expect prices or demand to drop any time soon. 

“We expect this trend to continue for the next few months at least,” she said.

PHOTO: Wanaka App