Property prices: 1980s home sells for $1.6m in Queenstown

963 Frankton Road, Queenstown. Photo / Supplied

A modest 1980s holiday home in Queenstown has fetched more than $1.6 million at auction.

Following a bidding war at a Bayleys auction last Friday, a local buyer successfully bid $1,690,000 for 963 Frankton Rd — an 837sqm property, with a capital valuation of $1,050,000, occupied by a 1980s holiday home.

Twenty-four bids, starting at $900,000, were placed.

"We had 16 bidders in the room, and we were almost out of agents to allocate to phone bidders [around New Zealand]," Bayleys Queenstown sales manager Stacy Coburn said.

"It's the first time I've seen some real heat in our market, and there was some serious competitive bidding, which we haven't seen for some time.

"I think the lack of inventory in Queenstown, in general, especially something like that, which is relatively unique, does drive the price up, because it's hard to replace."