- Te Anau’s average property value rose by over 10% to $937,000, driven by wealthy farmers.
- The town offers a peaceful alternative to Queenstown, with amenities and outdoor activities like fishing and hiking.
- Properties range from affordable baches to high-end lodges, with strong interest from Kiwis and Australians.
Agents say the secret’s out about Te Anau, the gateway to Milford Sound and Fiordland National Park in the deep south.
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According to the latest OneRoof figures, Te Anau’s average property value rose by just over 10% ($86,000) in the first half of the year to $937,000, one of the strongest value rises in the country.
It’s still possible to pick up a bach in Te Anau for well under $600,000 – PGG Wrightson has an original one-bedroom on for $495,000 – but such buying is no longer the norm.
Wealthy farmers are driving up prices in the little town, which offers a more peaceful escape than the wall-to-wall traffic and crowds of the tourist mecca of Queenstown, over two hours’ drive away.
Homeowners in Te Anau, in Southland, saw their properties rise in value by over 10% in the last six months. Photo / Getty Image
Te Anau is seen as the gateway to Milford Sound and Fiordland National Park. Photo / Supplied
Sandra Macnamara, PGG Wrightson’s Te Anau business development manager, said the region’s farmers were spending, not just in Te Anau but in Invercargill and other Southland towns.
They like Te Anau, though, as it’s peaceful (there is only one traffic island in the town and no traffic lights), but not lacking in amenities.
Te Anau has its own beautiful lake, has great summers, great restaurants, two great schools and plenty of sports facilities, Macnamara said.
There’s a happy vibe, and the school children are fantastic champions of the town. “Like, say someone tags the skate park – the local kids are really annoyed, because it was an out-of-towner who would have done it. Like, they’re very proud of their town.”
It’s possible, Macnamara said, to get a section in Te Anau for around $230,000, and she has noticed that buyers are building smaller lock-and-leave-style pads, instead of the big 300sqm home.
“Now they’re thinking, ‘Actually, I only want 120sqm. I want to spend more money travelling, I don’t want to be looking after a big lawn and a big garden’.”
Some buyers turn their purchases into short-term lets, but a lot don’t, and that’s part of the attraction. “Where I am, I have real neighbours, as in people living on both sides of me.”
For those wanting something a little out of town, colleague Nick Robertson is marketing a three-bedroom house on 3ha as “country living in Fiordland” for $1.25m.
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Macnamara does not think Te Anau will become another Queenstown, where the average property value is close to $2.2m, and homes can fetch over $16m.
For one, Queenstown is all about the nightlife and “the whole buzz and adrenaline factor”, whereas people come to Te Anau for the fishing, boating, and the Milford, Routeburn and Kepler tracks.
There’s no ski field near Te Anau either. “We will never compete because [the peaks are] all DOC-owned. We don’t get enough snow either, and we’re only an hour-and-a-half from the bottom of the Remarkables anyway.”
An original Te Anau bach is up for grabs at 67 Matai Street for $495,000. Agents say bargains don’t hang around. Photo / Supplied
Country living in Te Anau at 330 Sinclair Road. The three-bedroom home is for sale for $1.25m. Photo / Supplied
There is, though, a golf course and a nice one at that, said Graham Berry, director of Berry Real Estate.
One of Berry’s listings is a lodge that’s hosted many international golfers and which opens onto the seventh tee of the Te Anau Golf Club.
The six-bedroom, six-bathroom Dock Bay Lodge is a high-end property in the $4ms, Berry said. “It would be double if it were in Queenstown or Wanaka, but I think this is a different offering.
“It’s quiet and peaceful. You’re in the National Park, and close to the start of the Kepler track. You can walk through to Lake Manapouri, and there are bike tracks, fishing, outstanding scenery and boating. You’ve got access to some of the best wild country in New Zealand right there.”
The lodge was a rare offering for Te Anau, with nothing else like it in town, he said. “Replacement would be way more than the asking price, and it’s timeless as well. It’s beautifully done.”
Dock Bay lodge at 192 William Stephen Road is looking for a buyer with around $4m to spend. Photo / Supplied
Interest has been strong with Kiwis, some Australians, and some tourist corporates who have noted the demand for high-end accommodation in the town.
Compared to Queenstown and Wanaka, Te Anau was still reasonably affordable and offered great value, Berry said.
“A lot of people are looking for the next hamlet that isn’t crazy busy and gives you access to the mountains, the lake and the sea. It’s got a lot going on. I think it’s got a huge future, and I think it’s just been discovered as a next escape.”
Berry said Te Anau’s buyer profile was different to Queenstown’s. “Possibly it might have been the same people 10 years ago that were looking for quiet and recreation, but Queenstown is quite a busy place now.”
A lakefront home at 6 Cathedral Drive, Manapouri, can be picked up for just over $1m. Photo / Supplied
Those looking for land to build on can find plots at 61 Lancewood Subdivision, Manapouri, Photo / Supplied
Macnamara said nearby Manapouri was another great option for people, describing the lake town as Te Anau’s Arrowtown, meaning it’s just down the road. “All the main services are in Te Anau. Manapouri is – I lived there for six years, I loved it. It’s just slower-paced, really quiet. You can get a lakefront property for $1m, it’s incredible.”
She has one listed at $1.05m in Manapouri, which is lakefront and “beautiful”.
PGG Wrightson was also marketing a residential subdivision in Manapouri, called Lancewood, where a section can be bought for $200,000.
- Click here to find more properties for sale in Te Anau
