Regional differences shape lifestyle sales
According to the latest data from REINZ, lifestyle property sales dropped by 5.6% in the three months ending August compared to the previous period.
A total of 1,330 lifestyle properties were sold, which is an increase of 2.9% compared to the same period in 2023, but down from the 1,409 sales recorded for the three months ending July.
Overall, 5,669 lifestyle properties were sold in the year to August 2024, representing a 2% increase from the year before.
Existing properties preferred as costs rise
Shane O’Brien (pictured above), rural spokesman at REINZ, noted that 433 lifestyle properties were sold in August, including 80 bareland blocks, a decline from 101 in August 2023 and 137 in August 2022.
“Many buyers are looking to buy existing properties to ensure certainty against rising building costs and lengthy build times,” O’Brien said.
Farmlet sales remained stable with 353 transactions, the same as in August 2022, reflecting consistent demand in that segment.
Lifestyle property prices show mixed signals
The median price for lifestyle properties reached $950,000, marking a 4.4% increase compared to last year.
Farmlet properties saw their median price rise to $1,045,000, up 2.0% year-over-year.
Conversely, Bare Land Lifestyle properties saw a price drop, with the median falling by 3.3% to $432,500.
This mixed performance indicates divergent trends within different property types in the lifestyle market.
Sales up in some regions, down in others
Seven regions saw an increase in sales compared to August 2023, led by Manawatu-Whanganui (+28 sales) and Wellington (+27 sales).
In contrast, Otago (-19 sales) and Taranaki (-17 sales) saw the most significant declines.
Nine regions recorded median price increases, with notable jumps in West Coast (+28.0%) and Taranaki (+21.3%), while Nelson/Marlborough/Tasman and Gisborne/Hawkes Bay saw declines of 14.2% and 9.9%, respectively, REINZ reported.
Days to sell increase with regional variations
The median time to sell a lifestyle property rose to 90 days, 11 days longer than the same period last year.
Regional disparities were evident, with Southland boasting the fastest sales at just 52 days, while Auckland had the slowest at 104 days.
“The lifestyle market remains active, with sales numbers fluctuating monthly but the median sale price staying relatively steady,” said O’Brien, who expects the market to respond positively to increased buyer interest as the residential market improves across New Zealand in the coming months.
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