Winter Chills Temper The Lifestyle Market

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 179 fewer lifestyle property sales (-7.9%) for the three months ended July 2021 than for the three months ended June 2021. Overall, there were 2,089lifestyle property sales in the three months ended July 2021, compared to 1,955lifestyle property sales for the three months ended July 2020 (+6.9%), and 2,268 lifestyle property sales for the three months ended June 2021.

10,235 lifestyle properties were sold in the year to July 2021, 3,367 (+49.0%) more than were sold in the year to July 2020. The value of lifestyle properties sold was $10.73billion for the year to July 2021.

The median price for all lifestyle properties sold in the three months to July 2021 was $925,000 and was $185,000 higher compared to the three months ended July 2020 (+25.0%). The median price for Bare land Lifestyle properties sold in the three months to July 2021 was $475,000 and was $118,478 higher compared to the three months ended July 2020 (+33.2%). The median price for Farmlet Lifestyle properties sold in the three months to July 2021 was $1,100,000 and was $240,000 higher compared to the three months ended July 2020 (+27.9%).

Brian Peacocke, Rural Spokesman, at REINZ says: “Whilst sales results for the 3-month period ending July 2021 reflected an easing from the previous sale period ending June 2021, the numbers were still comfortably ahead of the equivalent periods ending July 2019 and July 2020.

“Reports reflect a continuation of strong demand, and whilst sales volumes remain solid, the increasing median price reflects a constrained supply,” he concludes.

Points of Interest around New Zealand include:

Upper North Island

• An increase in sales numbers in Northland but a significant decrease in the median price
• The opposite applied in the Auckland region which experienced a 20% decrease in sales but a 10% lift in the median price to a record level of $1,760,000
• The wider Waikato/King Country/Taupo region benefited from a good lift in sales volumes but a surprising, albeit small, easing in the medium price
• Bay of Plenty/Rotorua responded strongly to the slump in sales experienced last month with a 50% lift in volumes although it remained below the recent autumn 2021 and spring 2020 results; the median price however caved in by 18%.

Central North Island

• Gisborne/Hawke’s Bay maintained par with recent months but was still a massive 60% below the peak achieved in spring 2020, with Gisborne very much feeling the impact of that drop; the median price however benefited with an equally massive 35% lift to record the strongest level yet at $1,320,000
• Taranaki strengthened slightly in sales volumes, but also experienced a 12/13% lift in the median price to just under $930,000, which is a record for the province.

Lower North Island

• Manawatu/Wanganui maintained par in numbers but was pushed into touch with a significant drop in the median price
• Wairarapa retained its consistently strong following with a 15% lift in volumes and a strong 22% lift in price whereas by contrast, activity in the Wellington district was particularly subdued.

Upper South Island

• Nelson/Marlborough retained its popular support with consistency in sales and retention of a strong medium price
• Canterbury maintained par in sales numbers on a well-spread basis, with a slight recovery in the median price from the previous quarter
• West Coast performed with merit, recording a 10% lift in sales numbers and a 22% lift in price.

Lower South Island

• Otago continued to feel the impact of the lower level of sales experienced last month and with fewer sales reported in the Central Otago/Queenstown-Lakes districts, experienced a dramatic 58% drop in the median price
• By contrast, the gritty Southlanders outperformed their northern neighbors by holding par on numbers but gaining a meritorious 25% lift in price; however, the $529,000 figure reported was well below the peak of $760,000 achieved in May of this year.

10regions recorded an increase in sales compared to July 2020, with Otago (+40 sales) and Waikato (+35 sales) observing the biggest increases. Manawatu-Wanganui (-26 sales) and Gisborne/Hawkes Bay (-11 sales) recorded the biggest decreases in sales in the three months to July 2021 compared to the three months to July 2020. Compared to the three months to June 2021, 1 region recorded an increase in sales.

11regions saw the median price of lifestyle blocks increase between the three months ending July 2020 and the three months ending July 2021. The most notable examples were in Gisborne/Hawkes Bay (+67.9%) and Waikato (+37.8%) with the biggest decreases being in West Coast (-12.9%) and Southland (0.2%).

The median number of days to sell for lifestyle properties was 46 days less in the three months to July 2021 than in the three months to July 2020, sitting at 43 days. Manawatu-Wanganui (38) and Wellington (41) recorded the shortest number of days to sell in July 2021. West Coast (94) and Northland (69) recorded the longest number of days to sell.

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