#2 – People with money want to buy houses in Queenstown

It’s not enough for people to want to live in an area. For house prices to rise, those people must also have the money to bid prices up.

No matter what’s happening in the world, there will almost always be some people doing well financially. And when those people want a place in New Zealand, Queenstown is often top of the list. 

• Peter Thiel (the US billionaire) owned a clifftop mansion in Queenstown for many years. 
• Rod Duke (majority owner of Briscoes) is reportedly building a family compound.
• Michael Hill started his golf course and built his home in Queenstown.
• Chris Meehan (the face of Winton) is spending $200 million to build Ayrburn (a luxury lifestyle precinct)

More from Opes:

• Top 5 places to invest in New Zealand
• Should I turn my investment property into an Airbnb?
• How are Queenstown-Lakes District's house prices changing right now? (Annual)

#3 – Queenstown is New Zealand’s tourist town

Queenstown is one of New Zealand’s top tourist towns.

As previously mentioned, Queenstown receives 79 visitors a year per resident. 

That compares with just 1-2 visitors per resident in Auckland.

Tourists flock to the ski fields, vineyards and hiking trails.

I used to call it a “one-trick pony”. I was worried it was too reliant on tourism. But even during Covid, when the borders closed, Queenstown found ways to keep attracting visitors. 

That pony keeps playing that one good trick.

What are the cons of investing in Queenstown?

But it can’t all be good. Here are the downsides to investing in NZ’s most scenic area:

#1 – Queenstown houses are expensive

The average property value is around $1.86 million (QV, June 2025).

That doesn’t mean investors have to spend $1.86 million or more to buy a rental property. 

But, it’s not uncommon for Queenstown investment properties to cost hundreds of thousands more than similar ones elsewhere.

That means you need a larger deposit and a bigger mortgage. So, it can be harder to get a mortgage approved, simply because you need a bigger one.

That higher price can be a barrier for many investors.

#2 – Queenstown properties tend to have lower rental yields

Queenstown’s rents tend to be higher than elsewhere. The median rent is currently $850 a week (Trade Me, August 2025). That compares to $620 a week for the whole country.

But even with those higher rents, the rental returns are often lower than other parts of NZ.

That’s because while the median rent is 37% higher than average, the average property price is 105% higher. 

Here at Opes we tend to target a yield of over 4%, depending on where you are in the country.

Queenstown-Lakes District is one of the bottom 5 yielding regions. The median yield is just under 3%.

That doesn’t mean all properties in Queenstown have a low rental yield.

But, while there are properties that buck the trend, they’re the exception rather than the rule.

#3 – Not all Queenstown properties can be listed on Airbnb

A lot of Queenstown investors want to list their properties on Airbnb. 

That’s because tourists tend to use Airbnb, and Queenstown is NZ’s main tourist town. 

Listing your property on Airbnb can improve cashflow, but not every property can be listed on Airbnb full-time.

There are strict rules on how often a property can be rented on Airbnb and some areas need special permission before houses can be listed for more than 90 days a year.

One couple I know wanted to buy a 1-bedroom apartment in Queenstown. They wanted to Airbnb it year-round. 

Then they discovered they couldn’t. That property didn’t have the right consent, so they couldn’t legally rent it out on Airbnb all year. 

They pulled out of the contract and bought a townhouse they could Airbnb all the time. 

What should I look for in a Queenstown investment?

If you decide to invest in Queenstown, here’s what to look out for:

• Go for properties with 2+ bedrooms – one-bedroom properties generally don’t go up in value as fast.
• Avoid small apartments – these are tempting for Airbnb, but one-bedroom properties don’t tend to go up in value as fast.
• Focus on properties that work as long-term rentals – not just Airbnbs. You can still rent it out short term, but the numbers must stack as a long-term rental.
• Don’t ever think about living in the property. The goal is to make you money, not be a future bolt-hole.

Should I invest in Queenstown?

Queenstown can be a good place to invest – if you buy well.  

Don’t just think about the dream of living there ‘one day’. Run the numbers to make sure the property works even if you never live in it yourself.

For most investors, Queenstown should be a calculated, numbers-driven decision, not just a “I love the scenery” decision. 

And if you can balance the dream with the spreadsheet, Queenstown might just be worth a place in your portfolio.