Bridesdale farm, queenstown, house & land development
Bridesdale Farm is a unique and first of its kind investment opportunity in Queenstown. It is the first affordable housing development to be granted in the Central Otago region. What does that mean to the investor? Price.
The prices for these house and land packages are 35%+ lower than the average sale value in the Queenstown region and more importantly, they are in a brand new category of property that has been recently granted by the Government. The land allotments are smaller than what has previously been allowed in this location and this is reflected in the price that the developer is selling them for.
When this development was initially launched to the market the intention was for the properties to be sold to first homebuyers and or low deposit buyers. Unfortunately for this buyer group the current real estate market in Queenstown has buyer demand that it has not seen since 2004 – 2007.
Key investment results
Release date: September 2015
Results date: June 2018
Stock quantity: 12
Timeframe: 2.7 years
Equity gain through land value growth and build margin.
House and Land
Purchase price: $694,000
Value at end: $820,000
Deal profit: $126,000
Deal profit: 18%
Prices are rising very quickly with more and more out of town investors snapping up property as it comes onto the market. This buyer group, together with local builders, secured the majority of the early stage section releases and the target buyer market never got the opportunity to secure land that was designed for them.
This first homebuyer or low deposit purchaser group missed out because in a location like Queenstown, investors and builders typically move much faster than someone taking their time to decide on whether or not they want to live in a new type of property type and location. They usually purchase when they can ‘see’ a property vs making that decision ‘off the plan’. We managed to secure 12 lots in this green fields subdivision and we understand that the next release of sections will be at a much higher price.