HOLIDAY HOTSPOTS: WHAT LIES AHEAD?
These are unprecedented times that we are living through. In just a couple of months, Covid-19 has dramatically changed the world. With a recession on the cards and once-safe industries in free fall, the outlook for property markets around the country is now looking very different.
Most commentators are not willing to commit to concrete predictions going forward. Many do say the market is vulnerable in the current environment and predictions of a nationwide decline in price growth of about 10%, along with a drop-off in sales, are common.
However, it’s also acknowledged that some markets – especially markets that are heavily exposed to the tourism industry – are likely to feel more impact than others. So, in place of the regional review of a specific market that we usually run, in this issue we are taking a look at what the future might hold for a number of the markets around the country that fit into that category.
THE ADVENTURE CAPITAL: QUEENSTOWN
Famed for its picture postcard beauty and long marketed as the “adventure capital of the world”, Queenstown is the region perhaps most strongly associated with tourism. As such, CoreLogic senior property economist Kelvin Davidson says its market is among the most vulnerable in New Zealand to the Covid-19 crisis.
That’s largely because of the city’s economic structure: “17%
