- Queenstown-Lakes is attracting Australians, including tradies, due to the strong Australian dollar.
- The favourable exchange rate makes it easier for Australians to buy property and get mortgages.
- Australian interest is high in Queenstown, driven by its amenities and lack of capital gains tax.
As Kiwis head in droves to Australia, there’s not exactly a tide of Australians coming the other way to New Zealand – with one exception.
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Queenstown-Lakes is seeing more and more visitors from Sydney, Melbourne, and Brisbane arrive, many of whom are buying property and putting down roots.
Not all are high-net-worth individuals, though plenty are, but mortgage brokers and agents report plumbers and other tradies are finding the tourist destination an attractive place to raise children.
One factor drawing in newcomers from across the Tasman is the power of the Australian dollar against the New Zealand dollar.
Independent economist Tony Alexander wrote in his OneRoof column last week that the Kiwi dollar had fallen below 86 cents, the lowest since July 2013.
Independent economist Tony Alexander: "“There has always been investor interest in New Zealand property coming out of Australia." Photo / Fiona Goodall
From 2013 to 2025, the rate of exchange between the New Zealand and Australian dollar had moved from 90 cents to about 96 cents, he said, and the sudden move down from 93 cents last July would come as a nasty shock to people in their thirties to fifties who were contemplating a move across the Tasman.
That’s because they would likely be taking funds with them that would now buy far fewer Australian dollars than anticipated, and this would impact their ability to buy a house there.
Alexander told OneRoof this week that the exchange rate equally made it a good time for Australians to buy in New Zealand, but it was unlikely Aussies would swamp New Zealand because of it.
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“There has always been investor interest in New Zealand property coming out of Australia, but it's been very much tied to periods where New Zealand house prices have been rising strongly, and it attracts their attention, and that's not the case at the moment.
“I don't think that simply with the exchange rate changing, it's really going to elicit all that much extra interest.”
He thought the exception could be holiday homes in Queenstown, where Australians love to go skiing, but said there had also been some strong price rises happening in Queenstown as opposed to the rest of New Zealand and also many reports of shortages of accommodation there.
James Steber, from Custom Mortgages in Queenstown, said Queenstown was definitely the exception, and plenty of Australians were buying homes there, some to live in and Airbnb when they were not there.
The Hills golf resort in Queenstown. The tourist town's reputation as a golfing hot-spot has made it a favourite with Australians. Photo / Supplied
There has been an uptick in new housing developments in and around Queenstown. Photo / Mike Scott
But a lot were moving permanently, too. Steber said about 25% of his business was with Australians, and the exchange rate did give them an advantage over many Kiwi buyers.
Steber, himself an Australian who has put down roots in Queenstown, told OneRoof: “Almost daily, we’re getting inquiries from families who have sold their home in Sydney and are coming over to Hanley’s [Farm development] or Jack’s Point. They get an extra 10% on their exchange."
He added that many new arrivals were retaining their "big city job" in Australia or operating their Australian businesses from New Zealand
And getting a mortgage in New Zealand was pretty easy for an Australian. “We're talking a Sydney salary with the 10% currency uplift servicing the New Zealand loan - it kind of flies through.
“There also tends to be some tax advantages and currency advantages in borrowing as well, so even though somebody's wealthy, it's not a guarantee that they'll always just pay cash. They may want to borrow because it makes financial sense.”
Ray White chief economist Nerida Conisbee: "“New Zealand is obviously very beautiful, and if you've got Australian dollars, you can buy somewhere really beautiful." Photo / Supplied
The boom in Queenstown's construction sector was also attracting tradies from across the Tasman, Steber said. “If you go on construction sites, it's not uncommon to see Australian builders and Aussie sparkies and plumbers as well.”
These people may have sold up in Australia and brought with them a sizeable deposit, which would be amplified by the favourable exchange rate.
Steber said having an international airport in Queenstown with direct flights to a number of Australian cities was a big drawcard for Aussie buyers.
Another Australian in Queenstown is New Zealand Sotheby's International Realty managing director Mark Harris, who came over to start a property business a couple of decades ago.
Originally from Sydney, Harris has roots here – he has a New Zealand father and a great-grandfather who was a goldminer in Arrowtown in the 1800s.
He said that people buying in the higher price brackets were aware of exchange rates, which were more meaningful on purchases over $5m.
Australian interest in Queenstown was on the rise, with the town's transition to an all-year destination and the development of more amenities and new golf courses adding to its allure.
Ray White’s chief economist, Nerida Conisbee, who is based in Australia, also thought the exchange rate might make New Zealand more attractive, but she thought New Zealand's stagnant property market was a bigger drawcard for Australian buyers, saying New Zealand houses were probably underpriced.
And even though wages are lower in New Zealand and the jobs market is weaker, many Australians had family ties in New Zealand, which was another pull across the Tasman, especially for retirees.
“New Zealand is obviously very beautiful, and if you've got Australian dollars, you can buy somewhere really beautiful," she told OneRoof.
“What we tend to find with Australians buying anywhere, not just New Zealand, is that they do tend to have a strong link to the location. It's usually a family link that gives them the confidence to buy in another country.”
New Zealand was also attractive because there was no capital gains tax or stamp duty to pay - at least for now.
Bayleys head of insights Chris Farhi said if the Kiwi dollar continued to show weakness over the long-term, "it will be a good thing for some of the Kiwis over there who are saving in Australian dollars”.
One of the themes Bayleys often heard was of people who had moved to places like Sydney and found housing a challenge. Factors like that were more likely to draw people back to New Zealand.
Johnny Sinclair, head of residential for Bayleys and who works closely with partner McGrath Estate Agents in Australia, said Australians were definitely “hot” on New Zealand, but the interest was mainly in the South Island.
“Without a doubt, the Tasman Sea is getting smaller and smaller, narrower and narrower, and that's just because it's so easy to go in between.”
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