Queenstown – tourism’s crown jewel in NZMarch 23, 2018 / By
Queenstown, New Zealand’s answer to Aspen in Colorado, has experienced unprecedented growth in both domestic and international tourism over the past five years.
Queenstown Airport broke through the 2 million passenger barrier for the first time in the year ending December 2017. This is an astronomical feat for a small regional airport, being only the fourth largest in New Zealand. International passenger numbers were up 11 per cent in the six months to December 2017 with domestic passenger numbers up 14 per cent over the same period.
What’s more, passenger numbers are expected to reach 3.2 million by 2025 and over 7 million by 2045. With Queenstown Airport’s current format already approaching capacity, the nearby Wanaka Township, an hour’s drive to the north, will likely see its airport expanded to handle overflow capacity in the future.
The growth in tourist numbers has been a key driver for the hotel market. Over the last five years, average occupancy has increased from 63 per cent to 83 per cent and the average daily rate (ADR) has increased from $143 to $225 with an increase in revenue per available room (RevPAR) from $90 to $186. It is expected that an additional 1,700 hotel rooms will be required in Queenstown by 2025 to service demand for over 1.4 million room nights.
Given the tourism growth profile and the numerous retail, hotel and tourism operator opportunities, Queenstown is attracting international capital from institutional investors and high net worth individuals (HNWIs). Opportunities however, particularly for greenfield development sites, are severely restricted given the geographical constraints of the township.
The Commonage, Queenstown’s final jewel
Due to the demands placed on Queenstown’s infrastructure by the influx of visitors, the Queenstown Lakes District Council (QLDC) is taking steps to future proof the township to ensure it remains an accessible and tourist friendly hub. This is highly dependent on having high quality infrastructure in place to cope with growing tourist volumes.
Back in 1971, the Central Government vested 40 hectares of land at the top of picturesque Queenstown Hill to QLDC for funding infrastructure projects in the future. The land is known as The Commonage.
Today, there is one final piece of The Commonage remaining, some 9.5 hectares with panoramic views across Lake Wakatipu and The Remarkables. The site is located only five minutes from the town centre and a ten-minute drive from Queenstown Airport.
There is potential for a range of uses on the land including a residential subdivision, a resort or hotel, a trophy site to build a ‘mega-home’ for a high net worth individual or a combination of these options.
Given there are virtually no greenfield opportunities left within the Queenstown Township, The Commonage land presents a rare opportunity to secure a large scale development site with unrivalled views across the one of the Southern Hemisphere’s premier tourism destinations.
The property is being sold by JLL and Luxury Real Estate via an International Tender which closes on the 3rd of May 2018.
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