Salespeople marketing a freehold multi-unit residential asset on Queenstown Hill overlooking Lake Wakatipu and The Remarkables have fielded strong early enquiry from local and national buyers, which comes as no surprise given the accommodation challenges the popular resort town faces.

A shortage of rental accommodation across Queenstown and a lag in the pipeline of new stock is placing upwards pressure on existing housing supply, and proving particularly difficult for seasonal tourism business operators looking to house their workforces.

The property at 66 Marina Drive, Frankton was built in two stages and is made up of two separate buildings with a total building area of 714sqm across an elevated 3,632sqm site. There are 18 units in total with the newer upper-level building having six units, and the second building on the lower part of the site having 12 units along with communal coin-operated laundry amenities. There is a mix of modern studio and two-bedroom configurations each with kitchen and bathroom facilities, and each unit is allocated at least one sealed car park, with a total of 24 on site.

The property is currently leased to a construction company with one residential tenancy agreement in place until October 2026, and returning annual gross rental income of $550,004. A market rental appraisal across the various unit configurations is available on request.

Zoned Residential A, there is a plan available for a proposed additional six units to be constructed on the site which would increase the scale and return for a new owner.

The property is for sale by deadline private treaty closing 14th August, unless sold prior through William Gubb, Bayleys Queenstown and colleagues Ken Hu, and Damien Bullick of Bayleys Auckland.

Having seen evidence that larger scale tourism operators are purchasing property to house their staff, Gibb says this would be a logical play for the Marina Drive property which is well set up to accommodate a team of workers.

“Businesses in Queenstown are facing significant challenges around staff retention given the dire shortage of rental options in the town. Some of those businesses with large workforces are investing in residential property as a solution and this multi-unit offering with potential for expansion is ideally designed for this purpose.

“There are a number of options for a range of purchasers here given the holding income which provides flexibility. An owner-occupier could look to secure the property as worker accommodation and manage it themselves, an investor could buy it and outsource management to Bayleys or another management provider making it a hands-off investment, or it could even suit a family or group entity looking for a multi-generational legacy property to use year-round.”

Gubb says investment demand remains strong in Queenstown with more buyers than properties on offer.

“We simply haven’t had the volume of stock to sell and certainly nothing with the scale this multi-unit property offers.

“Queenstown remains New Zealand’s tourism hotspot and is a focus for investment across property typologies. The market here is defensive given the year-round recreational drawcards and the growth dynamics playing out across the region.”

Marina Drive has good access to a wide range of hospitality and essential services, is close to the Remarkables Park shopping centre, and is 2.8km from Queenstown Airport.