Queenstown's real estate market appears to be bouncing back, with all indications the bottom of the market has been reached.
Real Estate Institute of New Zealand Queenstown spokesman Adrian Snow said the standout figure in the August sales report was for sections.
"Section sales took a very big step up. We had 20 section sales for the month. The average [before August] was five per month."
Mr Snow said the statistics measured what had happened, but it went hand-in-hand with what realtors had been reporting - "there has been a definite lift in activity".
"The increase in activity has carried on through August, into September and now October. Confidence has been in a straight line . . . all the way from January this year.
"What the agencies observe as confidence isn't actually related to taking sales, but confidence has quite clearly been growing. A large number of potential buyers are out there looking at property, but not prepared to act until the market confidence appears to have risen and they can see that market has reached its trough."
Mr Snow said around July the market "decided we are at the bottom".
This week, Southern Lakes Real Estate held an auction for a two-bedroom, two-bathroom Pounamu Apartment, on Frankton Rd, that attracted 93 bids.
The apartment was expected to sell for between $395,000 and $420,000, but eventually went under the hammer in an auction that surprised most, for $492,000.
Mr Snow did not expect prices to "race away" again.
"Prices are relatively suppressed, or have come backwards about 15% since 2007. The market is not necessarily going to push them any further."
The confidence was reflected by Vista Management Ltd's decision to begin marketing its Hayes Creek development, at Lake Hayes Estate, which would see a total of 37 new homes built.
Vista Management project manager Paul Horrell said the first of 30 homes were priced between $485,000 and $650,000.
Affordable Housing Trust chairman David Cole applauded the development, but said despite the positive statistics it was still more expensive to live in Queenstown than anywhere else in the country.
The trust is nearing completion of the first stage of its Lake Hayes development, which will see five two-storey homes at Onslow Tce.
Stage two would see a further 20 houses erected in Nairn Square.
"We've got 31 people in the district in the last 18 months into our shared-ownership homes.
"These homes [in Lake Hayes Estate] are $450,000, but we leave $150,000 [invested]. Owners only have to find $300,000 to get into their own house - that's what makes it affordable."
Mr Cole said house prices had raced ahead of incomes and the problem was not just getting into a house but keeping it affordable through the early years of the mortgage.
"All I can say is any initiative that delivers affordable, or more affordable homes to first-home buyers has to be applauded . . . but we can't fool ourselves about the high cost of housing in this district."
Mr Cole said it was "significantly more expensive" to live in the district that anywhere else in the country - and it was unlikely the cost of living would fall.
