Sales up, prices steady
The Real Estate Institute of New Zealand (REINZ) has released its latest data on the lifestyle property market, revealing encouraging trends in sales and pricing for the three months ending in May.
Modest sales increase
According to REINZ, 1,449 lifestyle property sales occurred in the three months ending in May, marking a modest increase of 1.1% compared to the three months to April.
This reflects a broader positive trend, with a 4.5% rise compared to the three months ending May 2023, when 1,386 properties were sold.
Over the past year, 5,669 lifestyle properties changed hands, demonstrating robust market activity despite a slight decrease of 3.5% from the previous year.
See LinkedIn post here.
Significant economic impact
The total value of lifestyle properties sold for the year to May amounted to $6.3 billion, underlining the significant economic impact of the sector.
Median prices remained stable, with the median price for all lifestyle properties sold in the three months to May holding steady at $1,000,000, unchanged from the same period in 2023.
Bareland lifestyle properties saw a decrease in median price to $418,000 (-2.3%), while Farmlet lifestyle properties experienced a marginal decrease to $1,100,000 (-0.9%).
Demand and stability
“Despite some regional variations, the overall increase in sales and the stable median prices highlight the continued demand for lifestyle properties in New Zealand,” REINZ spokesperson Shane O’Brien (pictured above) said in a media release.
“The market’s performance over the past year underscores its significance in the country’s lifestyle sector, with substantial economic impact evident in the total value of properties sold.
“While we observe regional variations in sales and price movements, the overall market shows stability with incremental growth in sales and measured price adjustments.”
Regional variations
Regional variations in sales and prices were notable, with Auckland and Wellington leading in sales increases compared to May. However, Waikato and Manawatu-Whanganui saw declines.
Median prices showed diverse movements, with West Coast and Bay of Plenty recording notable increases, while Gisborne/Hawkes Bay and Wellington noted decreases, painting a vivid picture of the market's regional dynamics.
Five regions recorded increased sales compared to the three months to April.
The median number of days it took to sell a lifestyle property increased by 11 in the three months to May 2023 to 76 days in the three months to May 2024. Waikato reported the shortest selling period at 65 days, whereas Southland recorded the longest at 108 days.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
