With regional variations evident, REINZ figures show
The Real Estate Institute of New Zealand (REINZ) has released its latest figures, highlighting a steady increase in lifestyle property sales.
With 1,162 properties sold in the three months to February, the market has seen a 10% increase compared to the same period last year. Compared to the three months to January, the increase in lifestyle property sales was 0.7%.
Market dynamics and buyer motivations
Shane O’Brien (pictured above), REINZ rural spokesperson, noted a parallel increase in residential and lifestyle market activity, attributing this to buyers’ shifting preferences.
“A noticeable lift in the sale of farmlets with dwellings highlights a move by many buyers,” O’Brien said. “Often it is to avoid increased building costs and timelines, but with the shrinking supply of bare land as councils grapple with new government regimes restricting the further subdivision of productive land, this is also a contributor.”
The flexibility of remote work has also played a significant role, enticing buyers with the prospect of country living while retaining access to urban amenities.
Lifestyle property sales and median price
Despite a 12.9% decrease in sales compared to the previous year, the total value of lifestyle properties sold in the year to February reached $6.03 billion, underscoring sustained interest.
The median sale price for lifestyle properties was $936,750 in the three months to February, down 1.3% from the previous year. Bare Land Lifestyle properties saw an 11.1% increase to $450,000, while Farmlet Lifestyle properties dropped 4.5% to $1,050,000 in the same timeframe.
Regional sales and price variations
The REINZ report indicated notable regional sales increases, especially in Gisborne/Hawkes Bay and Bay of Plenty, contrasting with decreases in Otago and Manawatu-Wanganui.
Sales in Gisborne/Hawkes Bay and Bay of Plenty were up by 28 and 25, respectively, while Otago and Manawatu-Wanganui saw declines of 20 and 7 compared to February.
Moreover, four regions experienced increases in the median price of lifestyle blocks from February 2023 to February 2024, particularly in Manawatu-Whanganui and Wellington.
Selling time lengthens
The median selling time for lifestyle properties extended by 14 days in the three months to February, with Manawatu-Whanganui selling the quickest and Gisborne/Hawkes Bay the slowest, REINZ reported.
Click here for REINZ’s lifestyle press release. Compare the latest figures with the previous month’s.
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