Aussies drawn to Queenstown ski fields for affordability and investment potential
Diversified New Zealand developer Safari Group is expecting its newest apartment development to appeal to both locals and overseas investors, given its prime location on the fringe of Queenstown.
Safari Group is set to launch Mountain Oak Apartments in Frankton, just seven kilometres outside of Queenstown's centre and three kilometres from the airport.
Mountain Oak Apartments will have a mix of 141 one, two and three-bedroom apartments starting from NZ$639,000 (AU$586,000).
Residents of Queenstown, as well as local and overseas investors, are expected to show significant interest in the apartments that are located close to one of Queenstown's best ski slopes, The Remarkables.
Apartments start from 49 sqm and range in size to 249 sqm. There will be 36 one-bedroom and one-bedroom flexi apartments, 40 two-bedroom and two-bedroom flexi apartments, four three-bedroom apartments, three penthouses, and four private entry apartments.
Dual-key apartments from 74 sqm are also available. A dual-key apartment is legally one property held under one title, but they are actually two separate residences. There is a shared entryway but two separate front doors, providing an opportunity for double rental income.
Mountain Oak Apartments deliberately doesn't have extensive onsite facilities, knowing their likely usage is for ski holidays. The idea is to keep body corporate costs down for investors.
Architecture firm Studio 37 designed Mountain Oak Apartments.
Studio 37 Director, Gary Bickerton, said Queenstown’s beautiful environment is the inspiration for the design of the apartment building.
"The inspiration from the environment is reflected in the choice of natural colours and materials in the design of the building. The building design is derived from classic proportions, modulated to create a natural balance in the articulated facades.
"The master planning of the building allows the design of the apartment’s living spaces to have spectacular views of the surrounding landscape of Queenstown."
Queenstown is a popular holiday destination year-round, but is busiest during the snow season, which runs from around mid-June to mid-September. Queenstown’s popularity means short-term visitor accommodations are in high demand, and Safari Group has calculated that the average annual gross return for a Mountain Oak Apartment running as a visitor accommodation is 7.43 per cent.
After New Zealand locals, Australians are the second most active buyers in the New Zealand property market. Of the 33,609 home transfers in the June 2024 quarter, 804 were to buyers who stated an overseas tax residency, according to Statistics NZ. Of the 804, 306 were from Australia.
There is no stamp/transfer duty for Australians to pay when they buy property in New Zealand, in comparison to the four per cent minimum they have to pay in Australia.
Safari Group was founded in the mid-1990s, and has since established a reputation for building some of New Zealand’s most prized mixed-use properties. Safari Group is still one of the only vertically integrated property developers, handling both the development and the construction process.
Safari Group has had success in Queenstown before, developing four mixed-use residential hotel properties in the area since 2016: the La Quinta, Wyndham Garden and two Ramada Hotel and Suites.
Safari Group Senior Development Manager, Josh Van Veen, said Queenstown is a place that is high on people’s travel lists, both from locals and those living internationally.
"Queenstown is the premier all-seasons visitor destination of the South Island," Van Veen said.
"It peaks all year round in both winter for skiing and snowboarding, and summer for hiking, cycling and water sports."
Van Veen said the property market in Queenstown is always strong due to strong rental demand.
"There is a high tourist and residential living demand and a shortage of housing options, with a limited supply of stock for both renters and home buyers.
"There are lots of short-term visitors and long-term tourism workers always in the area looking for a place to stay or live.
"Queenstown properties generally give a good return on investment, so this is an opportunity for investors to either dip their toes into property investment or continue their investment journey and add another property to their portfolio."
