Queenstown-Lakes has emerged as a standout performer in New Zealand’s housing market, with property values rising significantly despite downward trends in other regions. Over the past eight years, the gap between median house prices in Auckland and Queenstown-Lakes has widened markedly, with Queenstown-Lakes properties now nearly $1 million more expensive on average. The average property value in the district has climbed by over 18% in the last three years to exceed $2.2 million, in contrast to a 5.4% decline in Auckland and a 7% increase in Christchurch during the same period.
This surge is not solely driven by luxury sales; while high-profile transactions, such as multimillion-dollar homes in Speargrass Flat and Lake Hayes, have drawn attention, much of the price growth stems from the mid-market segment. Ordinary buyers seeking family homes have intensified demand throughout the district, including in Queenstown, Wanaka, Cromwell, and smaller communities like Arrowtown and Lake Hayes.
Local real estate agents report a robust market with rising transaction volumes. Bayleys Real Estate’s Sharon Donnelly noted a slight increase in listing numbers paired with a 26% increase in average listing prices, now hovering just above $2 million. Bayleys branch manager Loua Boshoff reported a rise in sales across Wanaka and nearby suburbs, with transactions increasing from 640 in 2023 to an anticipated 769 in 2025. Buyers in this segment are primarily locals, making up about 60% of purchases, while international buyers constitute approximately 7%.
In Wanaka, developments such as The Tenby Collection, featuring architecturally designed townhouses priced between $1.25 million and $1.5 million, reflect continued interest in new housing options. Demand remains high at the upper end as well, although scarcity limits sales volumes.
Cromwell, which offers comparatively more affordable housing options, is also experiencing heightened demand, according to agent Keeley Anderson of Tall Poppy. Buyer profiles here include first-time purchasers, investors, and relocating families. Anderson emphasized that properties priced under $900,000 are scarce and attract multiple offers, with increased demand spreading from the lower end to the middle price brackets. Cromwell’s appeal is growing beyond affordability, thanks to its amenities such as wineries and outdoor activities, as well as renewed interest from Southland farmers and Australian buyers.
A recent market report from Colliers highlights strong tourism and population growth as key factors insulating Queenstown-Lakes from broader economic headwinds. First-home buyers remain the most active, focusing on homes up to $1.3 million, often in outlying areas such as Kingston, Fernhill, and Cromwell. Mid-market strength is particularly evident in Arrowtown and Lake Hayes, while some areas like Jack’s Point lag behind.
The report also notes resilience in the luxury segment, buoyed by discretionary spending among high-net-worth individuals and ongoing international interest, especially following changes to New Zealand’s Active Investor Plus visa program in 2025. Colliers is marketing prime development plots at Karamata Peak in Queenstown Hill, with many lots already sold and nearly half of registered buyers coming from Australia.
Hamish Walker, an agent with Walker & Co, attributes Queenstown’s robust market to several factors: limited land availability constrained by surrounding mountains, its appeal as a four-season destination, and increased inquiries from Australian buyers. Changes to Australian tax regulations have spurred a surge in interest from Australian investors and migrants, particularly those aged 35 to 55 seeking a lifestyle change for themselves and their school-aged children. Walker also highlighted that first-home buyers now represent about 29% of the Queenstown market, well above the 10-year average of 20%.
Population growth projections by the Queenstown Lakes District Council further underpin housing demand. The council anticipates the district’s population will reach nearly 111,000 by 2055, up from previous estimates of just under 99,000, creating sustained pressure on the local housing market going forward.