Once a resort town constrained by its own popularity, Queenstown’s housing market is entering a bold new phase of expansion. Landmark developments are reshaping the landscape, driven by strong investment appeal and the region’s unique market dynamics.

With new-build demand surging, the ‘Adventure Capital of the World’ is poised for a new era of growth.

Queenstown’s construction sector is thriving, with building activity over the past year running at four times the national average. This surge, driven by developers and local authorities, represents a strategic push toward bringing a new wave of townhouses, apartments, and bare land sites to the market.

Bayleys national director projects, Suzie Wigglesworth, says positive market response to many of the region’s latest developments highlights unique housing dynamics that underpin Queenstown’s resilience.

“Queenstown has outperformed the national market, with ongoing demand from domestic and international buyers driving strong pre-sales across key developments. A new tranche of quality developments supports housing supply while maintaining the high standards expected in such a world-class destination. An ability to attract high-net-worth and out-of-town investors is a key factor here.”

KEY DEVELOPMENTS IN FOCUS

One of the most highly anticipated new projects is Five Mile Villas, a large-scale development by Gibbons Co., where 75 percent of the 226 two-bedroom townhouses have already sold.

Wigglesworth says the strong demand for premium lakefront living is also an undercurrent at Gibbons Co.’s Lakehouse Villas development.

“The exclusive community of 63 architecturally designed, freehold homes overlooking the northeastern shores of Lake Wakatipu saw 90 percent of the homes sold within six months of official market release.

“Flexibility to use these homes for personal and visitor accommodation is a game-changer,” says Wigglesworth, who notes that consent to operate new homes as visitor accommodation is a crucial consideration for purchasers in Queenstown.

“Buyers today require versatility from their assets, and with this, they can enjoy a stunning lakeside retreat with the potential to generate income while not in residence.”

Responding to growing demand near the Remarkables Town Centre, developer Redwood Group (also behind the successful sell-down of the Coronet Peak Alpine Villas at Arthurs Point) has approved year-round visitor accommodation consent for all 180 residences in its three-stage Kawarau Villas project.

Wigglesworth says that all three projects have generated strong interest from a wide range of buyers, including entry-level purchasers, families relocating to Queenstown for lifestyle and employment opportunities, and investors. “These exciting developments will significantly impact local housing density and diversity, creating a ripple effect throughout the wider Frankton area, Remarkables Park Town Centre, and Airport precinct.”

VISITOR-READY INVESTMENT

Adjacent to Redwood’s Kawarau Villas, a strong track record of successful developments gives confidence to buyers eyeing Mountain Oak by Safari Group - a 141-unit residential complex in Remarkables Park.

“With 365-day visitor accommodation consent and Overseas Investment Office approval, this development offers units ranging from one-bedroom apartments to penthouses, starting at $639,000 – the lowest entry point in the market,” says Bayleys general manager projects, Gavin Lloyd.

“Developer Safari Group have calculated an average annual gross return of 12 percent for those using the apartments as visitor accommodation, which is attracting strong interest from local and Australian investors, in particular,” he says.

“With Queenstown’s strong track record of investment returns, developments with a proven ability to deliver high yields present an exceptional opportunity for buyers to expand their portfolios and capitalise on a high-performing market.”

FUTURE FOCUSED GROWTH

Over the past five years, the Queenstown Lakes District Council (QLDC) has actively rezoned land and steered development to meet the escalating demand for housing driven by tourism and population growth. Central to this initiative has been the revised Queenstown Lakes Spatial Plan, which aims to foster sustainable urban growth across the district.

Bayleys Queenstown and Southern New Zealand chief executive officer Stacy Coburn says the 27ha Frankton North urban area is a prime example of this initiative. Within the newly zoned precinct, developer Latitude 45 is delivering a boutique collection of apartments and terrace homes with self-contained studios – an attractive prospect for investors at Waipuna Rise.

“Similarly, The Preserve Farm in Jack’s Point represents a high-end opportunity in the semi-rural market, offering a limited number of premium lots within a luxurious enclave, popular with lifestyle buyers seeking privacy and proximity to local amenities like the golf course and Remarkables ski field.

“Further south, along the scenic Kingston Road/State Highway 6, large-scale subdivisions, including Park Ridge and Kingston Village, are expanding Queenstown’s housing footprint. Park Ridge has already launched 122 bare-land sites, while Kingston Village is starting its first release of 25 sections as part of a broader 750-home development.”

Coburn emphasises that these new projects underscore the requirement for housing diversity in the local market. “A range of housing types is integral to shaping the next wave of Queenstown’s housing landscape. Where demand is sustained, we expect continued strong interest as these projects come online.

“This long-anticipated growth is transformative for Queenstown. Well-received development efforts signal a significant leap forward, ensuring continued progress as Queenstown successfully balances its resort-like charm with the needs of a growing local community.”