It was the perfect storm in Wanaka last week when a 1960’s weatherboard home on Beacon Point Road sold for over $2.1m.
This was more than double the rateable valuation, and while such sales are not uncommon in Wanaka, Gail Hudson, regional director of the Real Estate Institute of New Zealand says it was “a seriously good result.”
She says that if there is a premium out there for a property then, “with the right auctioneer, an auction can achieve this.” In this case Mat Andrews was the man on the day. He’s been selling property in Wanaka for over 20 years and says, “sometimes the ducks all line up.”
In this case the ducks were a shortage of properties on the market, a strong demand for properties in “old” Wanaka, outstanding lake views, sub-division potential, the right sales strategy and six active bidders on the day.
Bidders came from Auckland, Tauranga, Wellington, Christchurch, and Wanaka, evidence of the wide interest in Wanaka as a place to live. “The market is very strong, and listings are short. People from all over the country are willing to pay (a premium) for the right property,” Hudson says.
It is not known what plans the new out-of-town owner has for this Beacon Point Road property, but around the town some have expressed concern that with properties in “old” Wanaka being further sub-divided, the character of the town may change, not necessarily for the better.
Alongside the strong property market in Wanaka, the rental market is also strong. With new legislation making it less attractive to rent, some owners are selling their investment properties, while others owning holiday homes are not prepared to take the risk that their tenants may refuse to leave after fixed terms.
“There is not a home shortage in Wanaka, but there is a serious rental shortage,” says Colleen Topping from Wanaka’s Home and Co.
“We are still desperately short of long-term properties for rent. We’ve had 19 applications for one property and 13 for another two properties.”
With demand outstripping supply to this extent, she says, “Rents have been creeping back up to what they were back in January 2020, before our first lockdown.”