Record Lifestyle Results Continue

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 556 more lifestyle property sales (+28.4%) for the three months ended August 2020 than for the three months ended July 2020. Overall, there were 2,512 lifestyle property sales in the three months ended August 2020, compared to 1,745 lifestyle property sales for the three months ended August 2019 (+44.0%), and 1,956 lifestyle property sales for the three months ended July 2020.

7,298 lifestyle properties were sold in the year to August 2020, 382 (5.5%) more than were sold in the year to August 2019. The value of lifestyle properties sold was $6.25 billion for the year to August 2020.

The median price for all lifestyle properties sold in the three months to August 2020 was $750,000 and was $50,000 higher compared to the three months ended August 2019 (+7.1%).

Brian Peacocke, Rural Spokesman, at REINZ says: “Sales data for sales of lifestyle properties for the 3-month period ending August 2020 in terms of volume reflect a market experiencing an adrenalin rush, albeit whilst the national median price is at a high of $750,000, there have nevertheless been as many reductions as gains throughout the various regions.

“The following chart demonstrates the volumes of sales across New Zealand for the last 5 years for the current period.

“This latest result consolidates the substantial increase in volumes gained during the previous quarter ending July 2020, where total sales for the country peaked at 1,956 sales, headed by 913 sales for July alone and now 937 sales for the month of August, ” he concludes.

Points of Interest around New Zealand include the following:

• Upper North Island - a continuation of well spread sales across the Northland region with previous volumes being maintained; improved numbers surrounding Auckland City with Rodney again just heading off Franklin for line honours; both regions experienced an incremental increase in the median price
• Central North Island - another healthy lift in sales volumes throughout the Waikato, Waitomo & Taupo regions with the majority of activity occurring in the Hamilton and Cambridge localities; Taranaki gained the slight easing experienced in the Bay of Plenty where the Western and Rotorua districts remained solid; a slight loss of momentum in Gisborne and a holding of par in Hawke’s Bay where activity was evenly spread; Bay of Plenty aside with a slight gain, the other localities all experienced a slight easing in median price
• Lower North Island - a big slump of approximately 30% in sales numbers from last month in the Manawatu/Wanganui region albeit a slight increase in price; steady results but an easing in prices for the Wairarapa/Wellington region
• Upper South Island - Nelson/Marlborough and West Coast both experienced the slightest easing in sales volumes while Canterbury had an excellent increase from 127 sales for the month of July to 159 sales for the month of August; Waimakariri in particular had the greatest increase but the South Canterbury areas still contributed solidly; all regions improved in their median prices, particularly Nelson/Marlborough and the West Coast
• Lower South Island - a healthy lift in volumes for the Otago province, albeit no particular district dominated, however, the median price has experienced a bit of volatility over the last two years; a distinct drop in activity in Southland for August (18) compared to July (33) but surprisingly, a reasonable lift in the median price.

Thirteen regions recorded an increase in sales compared to August 2019 with Auckland (+190 sales) and Canterbury (+151 sales) observing the biggest increases. Gisborne recorded the only decrease in sales (-4 sales) in the three months to August 2020 compared to the three months to August 2019. Compared to the three months to July 2020, all regions except Gisborne recorded an increase in sales.

Nine regions saw the median price of lifestyle blocks increase between the three months ending August 2019 and the three months ending August 2020. The most notable examples were in Gisborne (+26%), Nelson (+25%) and Canterbury (+20%) and the most notable exceptions were West Coast (-33%) and Hawke’s Bay (-23%).

The median number of days to sell for lifestyle properties was 19 days longer in the three months to August 2020 than in the three months to August 2019, sitting at 89 days. Compared to the three months ended July 2020 the median number of days to sell was the same. Manawatu/Wanganui recorded the shortest number of days to sell in August 2020 at 57 days, followed by Gisborne (62 days) and Taranaki (66 days). West Coast recorded the longest number of days to sell at 172 days, followed by Northland at 102 days and Canterbury and Otago at 100 days.

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