Renewed interest in real estate

There are indications the Queenstown real estate sector might be entering a phase of "renewed confidence", Real Estate Institute of New Zealand Queenstown spokesman Kelvin Collins said.

In his report for February, Mr Collins said so far this year there had been an active property market resulting in the highest residential sales since April 2009.

"Real estate agents are reporting good numbers at open homes and we may now be entering a phase of renewed confidence that has been evident around the rest of the country over the last six months.

"Buyers are gaining confidence to make decisions, although [they] are completing a lot of research before committing."

Mr Collins said it meant "well-priced property" was attracting multiple offers, "but property where the sellers' expectations are optimistic is still getting little activity".

Very strong activity was evident in the entry level of the market, with 40% of February sales for properties under $400,000.

"This is predominantly to first home buyers, although investors are reappearing for property with good cash flow."

Another feature in February was the sale of five one-bedroom units in the Sofitel Hotel, which realised between $100,000 and $144,000.

"These were selling in excess of $400,000 in the mid 2002s," Mr Collins said.


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