The luxury property market in Wānaka is undergoing significant shifts, driven by a variety of economic factors and changing buyer preferences.

Firstly, it’s important to understand the broader context in which Wānaka's luxury property market operates. The high-end real estate sector, defined here as residential properties valued at $4M and above, has seen a marked decrease in transaction volume over recent years.

Despite this downturn, the average sale price has increased. This paradox suggests continued confidence among buyers willing to invest in top-tier properties.

One of the primary reasons for this trend is the economic climate. Interest rates have been fluctuating, impacting buyer behaviour significantly. During the boom years of 2021 and 2022, the market experienced robust activity, with approximately 16 sales annually in the $4M-plus category. However, this number has since halved, with only five sales recorded since January this year (2024).

Interestingly, despite the lower number of transactions, the properties that sell are fetching higher prices. This indicates that the market is not devoid of high-net-worth individuals who see value in Wānaka’s luxury real estate.

Lake views and substantial property sizes remain key selling points, as these features continue to attract discerning buyers looking for exclusive, picturesque homes.

The prolonged time properties are spending on the market is another critical factor. While in 2021-2022, high-end homes would typically sell within 70 days, the average time on market has now increased to around 170 days.

This extended period reflects a cautious buyer sentiment, possibly influenced by economic uncertainties and the increased availability of properties. Currently, there are 29 listings in the $4M-plus category, giving buyers ample choice but also leading to a slower turnover.

A notable aspect discussed in The Goods on Real Estate podcast is the impact of market conditions in main centers like Auckland and Wellington on Wānaka’s luxury property market. Buyers who would typically sell their homes in these urban areas and relocate to Wānaka with substantial capital

are holding back.

This hesitation is primarily due to sluggish market conditions in those main centers, which have a cascading effect on the luxury market in Wānaka.

While the high-end property market in Wānaka faces challenges such as reduced transaction volumes and extended time on market, the increasing average sale prices and continued interest in luxury homes indicate a resilient sector. Economic conditions and interest rate fluctuations will undoubtedly play a crucial role in shaping the market’s future, but the fundamental appeal of Wanaka's stunning landscapes and substantial properties remains strong.

Whether you are a potential buyer, an investor, or simply fascinated by real estate trends, The Goods on Real Estate podcast offers valuable insights into the dynamics of Wānaka's property market. Tune in to gain a deeper understanding and stay ahead of the curve in this ever-evolving sector.