COVID Sees Lifestyle Property Sales Increase To Record High

The number of lifestyle properties sold across the country was the highest ever for the month of July as people look to reassess their living situations as a result of COVID-19 according to the latest data from the Real Estate Institute of New Zealand (REINZ).

In July, there were 849 lifestyle properties sold compared to 594 in July last year – a 42.9% uplift. This was also an uplift on June’s sales volumes where 643 lifestyle properties were sold.

Bindi Norwell, Chief Executive at REINZ says: “For a while now we’ve been hearing stories of people purchasing lifestyle properties as a result of COVID-19 and now we’ve seen this translate in the data.

“Over the last few months sales of lifestyle properties have been increasing, and last month saw the highest number of lifestyle properties sold in a July month ever,” says Norwell.

“As soon as the country went into lockdown agents started receiving calls from people wanting more space and lifestyle options given people were spending more time at home. Now that technology makes working from home so viable, COVID has been a strong catalyst for many people to make the leap they’ve been talking about for years,” points out Norwell.

Breaking the data down around the country, the increasing interest in lifestyle properties is a trend that has been seen in every region, bar Marlborough (which saw sales volumes flat) and Nelson.

“Every region that saw an annual increase in sales volumes of lifestyle properties during July saw double digit increases which is an incredible result,” says Norwell.

“In fact, interest levels in lifestyle properties were so high in the Manawatu/Wanganui region that it was the highest number of lifestyle properties ever sold in Manawatu/Wanganui in a single month since records began. Additionally, sales volumes on the West Coast saw triple figure increases, with the number of lifestyle properties was up by 157.1% when compared to July last year,” points out Norwell.

In addition to significant increases in sales volumes, July also saw a significant increase in the median price per hectare of lifestyle properties.

Across the country, the median price of lifestyle blocks increased by 4.1% to $750,000 compared to $720,577 in July last year, and up marginally from June’s median price of $745,000. This the highest median price in a July month since records for lifestyle data began.

Regions with the biggest increase in median price included:

• Bay of Plenty: up 44.6% from $650,000 in July last year to $940,000
• Canterbury: up 27.4% from $570,000 to $726,250
• Gisborne: up 26.9% from $417,500 to $530,000.

Additionally, the Bay of Plenty, Canterbury, Northland and Southland all had their highest median price for a July month.

“It’s not surprising we’ve seen the price of lifestyle blocks rise in many parts of the country given the demand for these sorts of properties. Now that the country has gone back into ‘lockdown 2.0’ it will be interesting to see if there is even greater demand going forward and whether prices continue to rise as we head towards the warmer months of the year; especially as there is an increased interest from offshore buyers looking towards opportunities in New Zealand,” concludes Norwell.

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