Queenstown property market outpaces European rivals

Queenstown, Lake Wakatipu and the Remarkables viewed from the top of the Skyline gondola. 30 August 2013. New Zealand Herald photograph by Mark MItchell

Queenstown has emerged as an international heavyweight in the luxury ski resort property market, with new research showing property price growth in the tourist town outstripping traditional high-flying destinations in Europe and the US.

According to the Knight Frank Prime Ski Property Index, released yesterday, prices for luxury ski homes in Queenstown jumped by nearly 19 per cent in the 12 months to June 30 - a rate of growth second only to the market in California's South Lake Tahoe.

The annual index assesses price movements in the the top 18 ski resorts around the world in the 12 months to June 30.

During that time, Queenstown luxury lodge pricing rose by 18.6 per cent price, outperforming Switzerland's St Moritz property market by 16 per cent, and Colorado's Aspen and Canada's Whistler markets by 11.2 per cent and 12.3 per cent respectively.

Knight Frank managing director, Layne Harwood, said Swiss ski resorts had topped rankings in previous years. Resorts in the French Alps usually came in after these, followed by the North American and Russian resorts.

"In the 2013 year, however, historical regional rankings have less relevance as growing buyer interest in individual ski resorts like Queenstown change the old world order,'' Mr Harwood said.

There was also an average price rise of 4.6 per cent in the luxury ski resort home market over the last 12 months. In the previous 12-month period, a slight fall was recorded, he said.

This average price rise in the luxury ski home resort market was also higher than the rise recorded in the luxury and second home market in many cities around the world.

"The ski property market does not function along the normal laws of supply and demand, rather these property owners are usually discretionary sellers with no pressing need to sell unless the `right' price is achieved,'' Mr Harwood said.

He expected that over the next year, sales activity would improve in the luxury ski resort market as interest in ski homes spreads beyond Europe and North America to emerging centres of wealth.

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Knight Frank Prime Ski Property Index:

Rank, Ski resort - % Change 12 months to June 30

1. South Lake Tahoe, United States - 20.9
2. Queenstown, New Zealand - 18.6
3. Zermatt, Switzerland - 14.1
4. Davos, Switzerland - 10
5. Morzine, France - 8.5
6. Chamonix, France - 8
7. Aspen, United States - 7.4
8. Whistler, Canada - 6.3
9. Verbier, Switzerland - 6.2
10. St Moritz, Switzerland - 2.6
11. Gstaad, Switzerland - 2.4
12. Telluride, United States - 2.1
13. Sochi, Russia - 1.3
14. Val-d'Isre, France - 0
15. Mgeve, France - 0
16. Courchevel, France - 0
17. Mribel, France - (-3.5)
18. Cortina, Italy - (-8.1)

Source: Knight Frank Residential Research