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Kiwi town is ‘holiday home heaven’

New Zealand's premier resort town is holding its own against the doom and gloom….

The Queenstown Lakes District is not immune to price increases and the downturn in property sales, but - according to the NZ Herald  - optimism remains high, as it has recently topped the ladder for population and business growth. Much of this is due to the growing tourist market, mostly from Australia, and the healthy foreign demand for property and services in the region.

Queenstown Lakes District mayor Clive Geddes, commented: "The well-being of our economy relies more on the well-being of the Australian economy than it does on the New Zealand economy. The single largest group of visitors who come here are Australians, and they are also very active in purchasing retirement and holiday homes."

"We will not be wholly unaffected by what happens in the rest of New Zealand. We would be foolish to think that. It may well be that a downturn in the property market catches up with Queenstown, but it won't dampen people's attitudes about the place and its future."

“Tourist growth was lower than it has been in recent years but there is still some growth. I think that is because over the years the resort has been developed in a way which has preserved its single greatest asset, which is the landscape."

Poised for ‘continued growth’

John Darby, the developer behind a multibillion-dollar resort settlement at Queenstown's Jacks Point, believes that while the property market nationally has slowed, Queenstown is poised for continued growth.

"All indicators suggest that demand for property in Queenstown, both as permanent residences and holiday homes, is going to remain high. The lifestyle offered in Queenstown and the sheer beauty of the area means it is a place that people are always going to want to be a part of."

This winter, 14 direct flights a week will arrive in Queenstown from Australia - mainly because of the ski season - increasing capacity on the transtasman route by 27 per cent.

Bill Dolan, chief executive of the Queenstown Chamber of Commerce, added: "Things are looking good at this stage, but there is a slowdown right across the country and we're waiting to see what effect it will have in Queenstown. We seem to be insulated from a lot of the trends that happen elsewhere in the country ... but it would be foolish to think we will escape totally unscathed."