Lifestyle Popularity Continues

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 205 more lifestyle property sales (+8.9%) for the three months ended April 2021 than for the three months ended March 2021. Overall, there were 2,513 lifestyle property sales in the three months ended April 2021, compared to 1,471 lifestyle property sales for the three months ended April 2020 (+70.8%), and 2,308 lifestyle property sales for the three months ended March 2021.

9,942 lifestyle properties were sold in the year to April 2021, 3,137 (46.1%) more than were sold in the year to April 2020. The value of lifestyle properties sold was $9.72 billion for the year to April 2021.

The median price for all lifestyle properties sold in the three months to April 2021 was $890,000 and was $181,000 higher compared to the three months ended April 2020 (+25.5%). The median price for Bare land Lifestyle properties sold in the three months to April 2021 was $450,000 and was $120,000 higher compared to the three months ended April 2020 (+36.4%). The median price for Farmlet Lifestyle properties sold in the three months to April 2021 was $1,044,500 and was $194,500 higher compared to the three months ended April 2020 (+22.9%).

Brian Peacocke, Rural Spokesman, at REINZ says: “Sales figures for the 3 month period ending 30 April confirms the popularity of lifestyle properties amongst the ranks of purchasers as total sales for the period throughout the country recover well after an easing over the previous two months of reporting.

“However, as to be expected as autumn heads towards winter, sales numbers for the month of April have eased 12.5% from the strong performance recorded for the month of March.

“As a further endorsement of the popularity of lifestyle properties, the national median price has continued to improve, albeit on an incremental basis.

“The general comment across the country is that the lifestyle market is strong with a number of regions reporting a shortage of stock,” he concludes.

Points of Interest from around New Zealand include the following:

Upper North Island

• Both Northland and Auckland experienced a surprising drop in numbers in April compared to March, 36% and 29.6% respectively, but their median prices improved by 6% and 11.7% respectively
• Reports from the Auckland market indicate a quietening of activity from the recent peak, with less attendees at Open Homes, harder negotiations and buyers becoming more cautious
• The Waikato, King country, Taupo regions remained solid in terms of well spread sales volumes but a slight easing in the median price has been recorded
• The Bay of Plenty and Rotorua market has eased in numbers but firmed slightly in price.

Central North Island

• Gisborne remains steady and Hawke’s Bay confirms its popularity with a firming in both numbers of sales and median price
• Taranaki wilted slightly under their predominant westerly but did hold ranks on value.

Lower North Island

• Wanganui and Manawatu report a strong market with numerous multiple offers reflecting a significant shortage of listings
• Tararua and Wairarapa report farmers taking every opportunity to capitalize on the strong lifestyle market by subdividing and selling surplus dwellings and small titles from their larger holdings
• Wellington and Horowhenua dropped off the pace albeit a steady flow of purchasers from Wellington continues to bolster the Wairarapa market
• The total region achieved a reasonable increase in the median price.

Upper South Island

• Reports from the Nelson, Tasman and Marlborough districts echo previous comments regarding strong demand and a shortage of listings, with an increase in purchasers seeking to live in the area renowned for sun and fun; the pressure on the markets kept the medium price neutral across the region
• Canterbury eased slightly in volume with activity reasonably well spread but compensated by improving 7.5% on their median price
• West Coast followed the pattern of their eastern neighbors with a similar easing in volumes but an improvement in the median price.

Lower South Island

• Otago hovered below the break-even line in terms of numbers with the consistent central region maintaining dominance, however the medium price was kicked for touch with a hefty 17.5% drop in values
• Southland volumes eased slightly but resisted the trend emerging on their northern boundary by holding par on price.

All 13 regions recorded an increase in sales compared to April 2020 (strongly influenced by the pandemic effect in 2020) with Auckland (+212 sales) and Waikato (+172 sales) observing the biggest increases. Otago recorded the smallest increase in sales (+9 sales) in the three months to April 2021 compared to the three months to April 2020. Compared to the three months to March 2021, all regions except Auckland recorded an increase in sales.

All 13 regions saw the median price of lifestyle blocks increase between the three months ending April 2020 and the three months ending April 2021. The most notable examples were in Gisborne/Hawke’s Bay (+66%), Manawatu/Wanganui (+59%) and Otago (+43%) with the smallest increase being in Taranaki (+2%).

The median number of days to sell for lifestyle properties was 24 days less in the three months to April 2021 than in the three months to April 2020, sitting at 48 days. Compared to the three months ended March 2021 the median number of days to sell was seven days less. Manawatu/Wanganui and Wellington recorded the shortest number of days to sell in April 2021 at 36 days, followed by Waikato (42 days). West Coast recorded the longest number of days to sell at 94 days, followed by Otago at 72 days.

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