Record prices, offshore money, and a supply crunch pricing out locals
The Central Otago-Lakes District hit a record average asking price of $1.67 million in May — a 20% annual increase, according to realestate.co.nz — with Queenstown reaching $2.03 million and Wānaka $1.71 million.
While the rest of New Zealand's property market stagnates or slips, the region is being propelled by two converging forces: a surge of cashed-up Australians fleeing proposed capital gains tax changes across the Tasman, and a growing cohort of global high-net-worth buyers treating Queenstown as a geopolitical safe haven, Stuff reported.
Trade Me Property reports prices in the Queenstown-Lakes District Council area sit at double the national average, with total search interest jumping 43% over the past six months. Housing stock in the district fell 13.3% year-on-year, against a national average rise of 5%, according to CoreLogic chief property economist Kelvin Davidson — a supply squeeze that is turbocharging price pressure from both buyer groups.
Aussie tax changes drive inquiry spike
Australia's May budget proposals — which would impose higher rates on investors and second-home owners — have sent a wave of wealthy buyers across the Tasman.
Hamish Walker, director of Walker & Co, reports a 30% rise in inquiries from Australian buyers with budgets above $3 million in the past month alone. NZ Sotheby's International Realty managing director Mark Harris puts year-on-year Australian inquiries up 90%.
Walker described the buyer profile as varied.
"I'm dealing with many younger couples in their 30s and 40s with young families, looking to move here for lifestyle reasons to escape the hustle and bustle of main centres in Australia. I'm also dealing with Australian buyers looking to buy holiday homes," he said.
A billionaire bolthole — with a price
International appetite extends well beyond Australia. Harris has recorded year-on-year spikes in inquiries from China, India, the UAE, and the United States — and points to a parallel domestic trend.
"In addition to overseas buyers we are seeing an ongoing exodus from cities in New Zealand to lifestyle destinations like Queenstown, in particular Auckland and Wellington," he said. "These buyers, combined with limited supply, push the prices up."
That global appetite has been sharpened by New Zealand's Active Investor Plus visa changes, which lowered the residential investment threshold from $15 million to $5 million. AIP applications have increased fivefold since the programme was relaunched in April 2025, with Americans the largest applicant group.
Walker recently handled an approach from one of the world's wealthiest families.
"Just last month I was dealing with one of the world's wealthiest families who are looking to purchase in Queenstown to use as a bolthole. When I asked why they are doing this, they put it down to the volatility of the current climate globally," he said.
The affordability toll is stark. Infometrics analysis puts the mean house value in the Queenstown-Lakes District at 11.4 times the mean household income — nearly double the national ratio of 5.9. Average rents for the wider region hit a record $903 per week in March.
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