A plain two-bedroom cottage worth just $300,000 — but sitting on a 1.13ha property — sold for a whopping $11.8million, OneRoof reported yesterday.
The sale price, the highest for a residential property this summer, reflected the high value of the land the dated house sat on, which had the potential for 20 houses, the report said.
The property, which was listed with agents from Colliers and Ray White and sold in December, was pitched as a development opportunity in a desirable part of Queenstown-Lakes.
The marketing for the Eely Point Rd property in Wanaka, Queenstown-Lakes, highlighted the site’s future potential, stating that the flat land was capable of a subdivision of up to 20 sites and that a feasibility study had been prepared by the sellers.
According to OneRoof, the property last changed hands in 2002 for $1.15million. The 2021 RV is $7.8million, of which $300,000 is for the cottage.
Ray White Wanaka owner Duncan Good, who brokered the sale, said that there was strong interest in the property from both wealthy individuals and developers, including from overseas, as its size and location was "very rare indeed".
"The potential here [is] the low-density zoning in this highly desirable area, known as the ‘golden triangle’. The fact it has such established trees, significant road frontages and is only 200m to the Eely Point Reserve all add to the value here," Mr Good said.
Most interest was from existing buyers with long-standing ties and experience in Wanaka, the report said.
Demand for housing in Wanaka remained strong from both local and out-of-town buyers, including families relocating from the North Island planning to work remotely, Mr Good said.
"Savvy buyers are using the market conditions to their advantage in order to step up the property ladder or ... downsize."
