Foreign buyer ban impacts Queenstown Lakes

Queenstown Lakes District was one of the biggest rockstar districts in the last wave of property price rises, but although the foreign buyer ban impact is possibly felt the most in this district, and growth has now slowed, there are still features in the market that make it well worth a look for investors.

According to CoreLogic, Queenstown/Frankton/Arrowtown three-bedroom homes’ median values have risen 76.1% over the past five years, and 5.1% in the past year to sit at $1,199,150. While in Wanaka, they’ve risen a whopping 80.4% (of which there was just 1.6% increase in the past year) in the past five years to sit at $934,450. However the discrepancy in three and four-bedroom properties is quite marked. In Wanaka, a fourth bedroom increases the median value to $1,276,550, while in Queenstown four-bedroom homes come in at $1,536,850 – that’s over $300,000 more than a three-bedroom property.

But before you let the high prices scare you away from this market – it’s seriously worth taking a look at yields. In Queenstown/Frankton/Arrowtown they sit at 3.4% for a three-bedroom, while in Wanaka they sit at 3.2%.

Foreign buyer ban impact