Twenty properties for auction

This three-bedroomed Lake Hayes Estate home, at 44 Erskine St, is one of about 20 properties for...
This three-bedroomed Lake Hayes Estate home, at 44 Erskine St, is one of about 20 properties for auction in Bayleys Queenstown's "The Big Call" on May 3. Photo supplied.
Confidence in the Wakatipu's real estate sector as a lifestyle and holiday home destination will be tested when Bayleys Queenstown auctions 20 homes, apartments and bare section plots in "The Big Call" on May 3.

The offerings range from a one-bedroom apartment in the centre of the resort and comfortable three-bedroom suburban dwellings, to large partly developed land holdings on the outskirts of town.

Bayleys Queenstown reported close interest from not only potential buyers, but also land valuers, accountants and the resort's legal fraternity, which managed scores of medium-sized investment and trust funds on behalf of private clients.

Bayleys Queenstown director David Murray said in a statement the diversity of the auction portfolio would benchmark property values as the market headed into the winter season, which normally attracted buying interest from Australian holiday-makers in town to ski.

"Previously, real estate agencies, including ours, have tended to theme auction days around one particular segment of the market, such as just bare land, or just apartments, or just stand-alone residences.

"This portfolio has taken an 'umbrella' approach to the greater market, so at the end of the process we will be able to get a much more comprehensive picture of buyer confidence across the board."

Mr Murray said there were several motivating factors behind the sale of the properties, such as overseas owners, particularly Australians, who used the properties as winter holiday homes in a ski destination for several years, but who were now looking for a new location.

Mr Murray said there were only two mortgagee auctions in the portfolio: a 900sq m residential section on the way into town from the airport and a multi-dwelling zoned 8590sq m site at Jacks Point.

"This is a far cry from several years ago, when mortgagee and receivership offerings were a virtual monthly occurrence as developers and their financiers went to the wall.

"The solidity of this portfolio shows there is now considerably more spine in the property market, and while we are certainly a long way off any boom, the property cycle has definitely turned and is entering a new phase where prices will be firming, albeit on lower sales volumes."

Mr Murray said that as a secondary home location, property prices in Queenstown had been relatively stagnant for the past three to four years, with many owners of holiday homes forced to quit their holdings in order to consolidate debt on their primary residences or refinance their businesses.

"We are starting to see that trend loosen up as Aucklanders once again begin returning here for their skiing holidays, combined with renewed interest out of Southland's rural sector, which for the past 24 months has seen many farmers paying down their debt levels.

"Those farmers, particularly those within a two-hour driving radius, are now once again looking for holiday homes in and around Queenstown," Mr Murray said.

The Big Call auction will be held at Bayleys Queenstown, Stanley St, on May 3 at 11am.

Bayleys national auction manager Campbell Dunoon, of Auckland, will be the auctioneer.


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