'They're back': Australians return to hunt for southern lakes homes

Agents are welcoming returning Australians and Singaporeans to Queenstown. Photo / Getty Images

New Zealand's property market might be softening overall but real estate agents say the luxury market is still hot in our southern resort towns with Australians beating down their doors.

After 330 days, flights from Sydney returned to Queenstown late last month and inquiries for properties in the Central Otago Lakes region appear to have increased.

Hamish Walker of Premium Real Estate sold one property to a wealthy Sydney buyer recently and in August he's heading to Australia and Singapore to speak to more.

Sydney millionaires in particular, wanted to move to the Central Otago Lakes region for lifestyle reasons in the "working from home" revolution, Walker said, citing the lakes, rivers and mountains as big drawcards.

"They've worked out through the pandemic they can work from anywhere so why not bring the family somewhere beautiful like here?

"They most often want to be only about 15 minutes' drive from Queenstown and it's often the wife who has the final say-so.

"Since last month more and more Aussies are starting to appear. I have spent time driving them around the suburbs. Many of them want small lifestyle blocks as they can only buy under 5ha," he said referring to Overseas Investment Act rules.

More than 5ha is not classified as residential but is "non-urban", so triggers Overseas Investment Office clearance requirements to buy.

Australian and Singaporean citizens are exempt from the ban on foreigners buying our residential properties.

"Across New Zealand the market has softened, but not if you are looking in the high-end $4m-plus range in this area," Walker said.

"I've had many Australian and Auckland buyers who are willing to spend whatever they need when securing a property and are happy to buy, sight-unseen."

Glen Sowry, chief executive of Queenstown Airport. Photo / supplied

Glen Sowry, Queenstown Airport chief executive, said 300 Australians are arriving a day but by the end of the month it will be 1000 a day.

"People are saying this is the best ski season start in 30 years. I notice this is becoming an increasingly popular place for Australians to visit and own property ... there are a lot of Australians who own here," Sowry said.

The Real Estate Institute has also picked up on the area's popularity lately.

"With increased flexibility to work remotely, Central Otago/Lakes has seen more people moving to the region to take advantage of its lifestyle. With a ski season and a relatively warm summer climate, and a plethora of adventures whichever season you prefer, it has wide appeal," REINZ said in its April report.

Queenstown-based Mark Harris, managing director of Sotheby's International Realty New Zealand, said Australians had always been keen to buy in his area since the agency opened in 2005.

"Certainly Sydney and Brisbane people at this time of the year - there's plenty of them inquiring and making bookings to come skiing and appointments to view properties while they're here."

Those buyers looked to spend anywhere from $1m to $25m, he said. In the summertime, they're more interested in properties further out of Queenstown perhaps near golfing resorts but during winter, they're keener to buy closer to Queenstown or in the town itself.

"The higher up the value chain, the higher the percentage of Aucklanders and Sydneysiders," Harris said.

Sotheby's agents Gerard Bligh and Hadley van Schaik sold a Queenstown Hill home for $9m to a South Islander in the last four weeks "and it didn't even go on our website. We were just getting some photos when it sold", Harris said.

The Central Otago Lakes region suffered a 22.1 per cent median house price drop between April last year and this year, from $1.22m to $950,000, according to the Real Estate Institute.

Wānaka's median house price dropped more spectacularly, down 43 per cent annually to $635,000.

"Of the 58 sales in Wānaka this April, 24 were townhouse purchases from Riverside Residence between the $400,000 to $700,000 price point. The median price excluding these sales would have been $1,115,000," REINZ said.

Queenstown sales volumes fell 11 per cent lately, REINZ said.

Big sales

20 Briar Bank Dr, Wanaka, sold by John Perriam for $5.5 million. Photo / supplied

Views of Lake Wanaka from within the home John Perriam sold. Photo / supplied

Walker sold $31.8m of properties in April and May and said he saw no immediate signs of things softening.

He recently got $5.5m for a resort-style home that has six bedrooms, five bathrooms, sweeping views of Lake Wānaka, a fair bit of schist and was marketed as the ultimate lakeside home or luxurious lodge.

Walker sold the lodge-like six-bedroom 20 Briar Bank Dr, Wanaka, a house referred to as having timber accents that exuded warmth.

The vendor was Bendigo Station Developments, whose directors include John Perriam who owns the 12,000ha Bendigo Station.

Perriam rose to prominence via Shrek the sheep and has been lauded for his dedication to the merino and wool sectors.

Shrek managed to avoid the muster for six years before he was found in a cave on Bendigo with a fleece weighing an outstanding 27kg when he was shorn.

For his 10th birthday, he was in the news again after being shorn on an iceberg off the coast of Dunedin.

Shrek the sheep with a full fleece. Photo / supplied

Before being owned by Bendigo, the Wānaka house Walker sold was previously owned by associates of an Australian mining business and used as accommodation.

Walker also sold two other properties in the last few weeks: 37 Max's Way, Queenstown for $5.5m and 5 Thames St, Arrowtown for $2.4m.

37 Max's Way with a 15-year-old home sold for $5.5m. Photo / supplied

5 Thames St, Arrowtown, sold for $2.4m. Photo / supplied

The Max's Way place is just under 4ha and has a home of around 15 years on it.

The Arrowtown home is a 1980s place with a modernist addition on the back.

He sold another place for more than $10m lately but settlement is yet to occur.