Why Queenstown—and Frankton—Are Standout Investment Opportunities in 2025

Discover why Queenstown and it's fast-growing suburb Frankton has outperformed the national average in Property Price Growth

Thinking about investing in Queenstown? This 2025 outlook reveals why Queenstown and its fast-growing suburb Frankton continue to outperform the rest of the country—offering both luxury appeal and affordable entry points for savvy investors. While most of the country has experienced some growth, this region stands tall above the others for capital growth, rental yield, and long-term resilience.

"Recovered from the slump entirely are Otago and the region's wealthiest district, Queenstown-Lakes, with both enjoying value growth of around 2% in the last three months."

"Queenstown-Lakes largely escaped the slump, with its average property hitting a record high of $1.92m in February 2023 before dropping just 2.9% to $1.86m nine months later. Since then, it has grown 12.6%, reaching a new high of $2.099m in May this year."

"Queenstown has entirely different drivers. People there are buying second and third homes - and it's high-end stuff. Queenstown also had a shortage of homes at all ends of the market, plus strong tourist demand for accommodation…"

(Source: Oneroof)

House Property Value Growth in South Island Major Metro Area's

Queenstown Property Market Resilience: Why It’s Still a Top Performer in 2025

While many parts of New Zealand are still recovering from the broader property downturn, Queenstown has done more than bounce back—it has powered ahead. After briefly dipping, average property values have surged to new all-time highs. Unlike larger cities that took significant hits during the slump, Queenstown’s price correction was minimal and short-lived. That tells investors one thing loud and clear: Queenstown is resilient.

This isn’t by chance. Queenstown has unique market drivers—strong lifestyle appeal, ongoing international interest, tourism-fuelled demand, and a housing shortage at all price levels. These factors combine to form a natural buffer that protects property values through economic cycles. While other markets flatten or stagnate, Queenstown continues to climb.

Is Queenstown Still a Good Property Investment in 2025?

Investors love certainty—and Queenstown seems to deliver just that. It has long been seen as a premium lifestyle and second-home market, but what’s become clear over the past two years is that it’s also one of New Zealand’s most stable and reliable markets.

Key reasons Queenstown remains a stable investment:

• Tight housing supply due to zoning , topography and limited land availability

• Population growth outpacing development, driving consistent demand

• Tourism and high-end lifestyle demand continue to bring new capital into the area

• Year-round rental demand driven by local workforce

This confluence of demand and scarcity creates an environment where price stability and capital growth potential remain strong, even in times of wider economic uncertainty.

Frankton Property Investment: Affordable Homes with High Growth Potential

Frankton is the access point to Queenstown and has rapidly transformed into a vibrant hub with its own identity. Only 15 minutes from central Queenstown and next to the airport, Frankton has become a self-sustaining community—boasting shopping precincts, schools, healthcare, and growing job opportunities.

And most importantly for investors, Frankton is where the most affordable new builds are located.

Modern townhouses here often start under $900,000 and apartments for just $640,000—far below Queenstown’s average of over $2 million. These are brand-new, low-maintenance homes purpose-built to appeal to renters and owner-occupiers alike. Developers are focused on functionality, style, and durability, making these homes ideal for investors seeking a hands-off, future-proof asset.

Advantages of investing in Frankton new builds:

• Full interest deductibility benefits

• Low maintenance and high tenant appeal

• Long-term capital growth upside in a fast-growing location

Whether your focus is long-term tenancy or short-stay potential, Frankton ticks all the boxes.

Frankton Rental Yields: Strong Demand and High Returns

Frankton has become a rental hotspot. Nearly half of local residents are renters, and demand consistently outpaces supply. With modern two- or three-bedroom homes renting for around $900–$1,000 per week, gross yields around the 4% to 5% range are achievable—well above what’s typical in most metro centres.

With high occupancy rates, a diversified tenant pool (from aviation and hospitality workers to professionals), and growing local infrastructure, Frankton properties provide consistent, predictable income streams.

Why 2025 Is the Best Time to Invest in Queenstown Property

The combination of record-high property values, a shortage of quality housing, and the return of investor-friendly conditions creates a rare alignment of timing and opportunity. For first-time investors, Frankton offers access to Queenstown’s growth without the financial hurdle of luxury pricing. For seasoned investors, it’s a smart diversification play—into a high-growth, low-risk environment.

But this window may not last. As confidence returns to the national market and Queenstown’s reputation strengthens, competition for these entry-level properties will heat up. Investors who act now will benefit from strong rental yields, compelling capital growth prospects, and a foothold in one of New Zealand’s most admired property markets.