Queenstown's luxury real estate renaissance

A market defying gravity

While many global property markets have experienced volatility over the past several years, Queenstown's luxury segment has demonstrated remarkable resilience and growth. Nearly 20% of New Zealand's properties priced at $5 million or more are now located in Queenstown, a staggering concentration for a town with a permanent population of just over 50,000.

The numbers tell a compelling story. Between 2021 and 2024, sales of properties priced above $5 million rose by 21% in Queenstown, even as total property transactions across the market declined by 13%. This divergence speaks to a fundamental shift in buyer behaviour at the ultra-high end of the market. By September 2025, interest in ultra-prime homes (those valued above NZ$5 million) had increased fourfold, with the Otago region accounting for one in three such inquiries nationally.

The golden visa effect

Much of this renewed vigour can be attributed to a pivotal policy shift by the New Zealand government. The introduction of provisions allowing high-net-worth buyers to purchase properties valued over $5 million once they have been approved under the Active Investor Plus (Golden Visa) investment category. This pathway requires an investment of at least $5 million in an a acceptable investment or business and has effectively reopened the market to international capital after nearly a decade of restrictions. This change has proven transformational. Where once foreign buyers faced significant barriers to entry in New Zealand's residential market, qualified investors can now participate in the ultra-luxury segment, bringing not only capital but also global networks and business acumen to the region. For Queenstown, with its natural scarcity of developable land and established reputation among the global elite, this policy adjustment has been particularly impactful. Property valued above NZ$5 million has increased fourfold, with the Otago region accounting for one in three such inquiries nationally.

Stacy Coburn, Bayleys Queenstown CEO comments, "New Zealand is back open for business and for providing this pathway to high net worth individuals, NZ gets new skills, creates new jobs, networks, leading business innovation and further impactful capital investment into our domestic economy."

Queenstown's unique value proposition

What makes Queenstown particularly attractive to international buyers extends well beyond its undeniable natural beauty. The town offers a rare combination of attributes that few markets can match: Tax Efficiency: New Zealand's absence of stamp duties and comprehensive capital gains taxes provides a favourable fiscal environment for property ownership, particularly attractive to investors from markets with more onerous tax regimes.

Geographic Scarcity: Surrounded by mountains, conservation land, and water, Queenstown faces natural constraints on development that ensure supply limitations, supporting long-term value appreciation.

Infrastructure and Amenities: Despite its relative remoteness, Queenstown boasts world-class infrastructure, including an international airport with direct connections to Australia and beyond, award-winning restaurants, luxury retail, and internationally recognised education facilities.

Political Stability and Rule of Law: New Zealand's stable democratic institutions, transparent legal system, and strong property rights provide the security that ultra-high-net-worth individuals prioritise when making significant capital allocations.

The Australasian context

To understand Queenstown's position, it's essential to examine the broader Australasian luxury property landscape. Australia's luxury residential real estate market is expected to reach USD $25.25 billion in 2025, with projections suggesting growth at a compound annual rate of 5.75% to reach USD $33.40 billion by 2030. Sydney and Melbourne both ranked among the top ten cities globally for luxury property price growth projections in 2024, reflecting the region's overall strength.

The population of ultra-high-net-worth individuals in Australia is projected to reach 27,330 by 2026, creating sustained demand for premium properties not only within Australia but also across the Tasman. With over 50,000 Australians and New Zealanders relocating between the two countries annually, the trans-Tasman property market has become increasingly integrated, with buyers viewing both nations as part of a single investment and lifestyle ecosystem.

Queenstown benefits enormously from this dynamic. For Australian buyers, particularly those from Sydney and Melbourne, Queenstown offers a compelling alternative: comparable luxury amenities and natural beauty, but with more accessible pricing relative to trophy properties in Australia's harbour cities, combined with the appeal of international diversification.

A global phenomenon

Zooming out further, Queenstown's luxury property renaissance is occurring within the context of unprecedented global wealth creation and mobility. The worldwide luxury real estate market was valued at approximately USD $289.6 billion in 2023 and is projected to reach around USD $515.3 billion by 2032, reflecting a sustained trend of affluent individuals allocating capital to premium residential property across borders.

The human dimension of this trend is equally striking. An estimated 128,000 high-net-worth individuals migrated to new countries in 2024, hitting record levels. The global population of high-net-worth individuals grew by 4.4% in 2024 to reach roughly 2.34 million individuals, expanding the pool of potential buyers for markets like Queenstown.

These ultra-wealthy individuals increasingly seek properties that offer not merely luxury accommodation, but entire ecosystems of opportunity: privacy, natural beauty, investment security, lifestyle amenities, and increasingly, jurisdictions perceived as offering political stability and personal freedom. Queenstown's emergence as a premier destination reflects its ability to deliver on all these dimensions simultaneously.

The power of global networks

For those seeking to capitalise on Queenstown's luxury property opportunity, whether as buyers or sellers, the importance of truly global connectivity cannot be overstated. This is where the power of the Bayleys, Knight Frank, and McGrath network becomes particularly relevant.

Since Bayleys and Knight Frank established their strategic relationship in 2018, the partnership has created one of the world's most formidable real estate networks. The 2024 acquisition of McGrath by Knight Frank and Bayleys further consolidated this position, bringing together three distinguished brands that share common values and complementary strengths.

The combined network now spans 276 offices across Australia, New Zealand, and the Pacific Islands, forming part of Knight Frank's global reach of over 740 offices in more than 50 territories worldwide, engaging more than 27,000 real estate professionals. Australia and New Zealand now represent one of the largest regions within Knight Frank's global network, with the Australian office count even surpassing the firm's UK operations. The network operates on the principle of shared expertise and collaborative opportunity. Knight Frank's research capabilities and market insights inform strategic decision-making across all three brands, while Bayleys' deep local knowledge and dominant position in the New Zealand market (commanding 48% of the commercial market nationally, 38% of farm sales, and 34% market share in residential properties above $3 million) ensures that international reach is balanced with unparalleled local expertise.

This combination of global reach and local knowledge has never been more critical. Today's luxury property buyers are sophisticated, well-informed, and expect seamless service regardless of geographic boundaries. A European executive considering Queenstown requires not only an understanding of the local market but also assurance regarding wealth management, legal frameworks, property management, and lifestyle integration. Similarly, the McGrath connection provides enhanced access to the substantial Australian buyer pool, many of whom view Queenstown as an attractive extension of their domestic property portfolios.

The Bayleys-Knight Frank-McGrath network can coordinate all these elements through a single, trusted relationship.

Looking forward

As we move through 2025 and beyond, several factors suggest Queenstown's luxury market will continue its upward trajectory. Global wealth continues to accumulate, international mobility shows no signs of slowing, and the search for secure, beautiful, well-governed jurisdictions offering both lifestyle and investment value remains a priority for the world's most affluent individuals. Queenstown, with its unique combination of natural splendour, infrastructure sophistication, policy support, and now, unprecedented global connectivity through networks like Bayleys, Knight Frank, and McGrath, appears exceptionally well-positioned to capture an increasing share of global luxury property investment. For those with the vision to recognise exceptional opportunity and the resources to act upon it, Queenstown's luxury real estate market represents more than simply an investment in property. It represents an investment in a lifestyle, a community, and a place where the extraordinary has become the standard expectation. In an increasingly complex and interconnected world, few markets offer such a compelling proposition.

Disclaimers: This article is for general information only and does not constitute financial, investment, or legal advice. Property investment involves risk. Readers should seek independent professional advice before making any property investment decisions. While care has been taken to ensure accuracy, Bayleys makes no warranty as to the accuracy or completeness of information provided.