Lifestyle market sees steady gains
The Real Estate Institute of New Zealand (REINZ) reports a steady increase in lifestyle property sales, with 1,400 sales in the three months to September, marking a 3.3% rise from the previous quarter and an 11.8% jump from the same period in 2023.
This growth, accompanied by increased buyer confidence due to lower interest rates, signals positive momentum in the market as the spring selling season kicks off.
Steady growth in sales and prices
In the year ending September, New Zealand saw 5,699 lifestyle property sales, up 4.3% from the prior year, totaling $6.34 billion in sales value.
The median price for lifestyle properties reached $945,000, a 3.8% increase from 2023.
Specific property types also showed price increases: bareland lifestyle properties saw a slight 0.1% rise to a median of $450,000, while farmlet properties climbed 2.7%, reaching $1,050,000.
“September’s results reflect positive momentum in the market as we approach spring,” said Shane O’Brien (pictured above), REINZ rural spokesperson.
“The recent reduction in interest rates and indications of further decreases are boosting buyer confidence, and this positive trend is expected to carry through spring and summer.”
Regional trends and median price changes
Sales increases were seen in seven regions compared to last year, led by Northland (+63 sales) and Waikato (+42 sales), while Taranaki (-18 sales) and Bay of Plenty (-8 sales) saw declines, REINZ reported.
The median sale prices of lifestyle properties also rose in ten regions, with the West Coast (+74.3%) and Taranaki (+21.2%) showing the largest increases, while Auckland (-4.5%) and Nelson/Marlborough/Tasman (-2.7%) saw the most significant declines.
The time properties spent on the market has increased, with the median number of days to sell now at 95, up by 18 days from last year. The West Coast recorded the shortest selling period at 65 days, while Auckland had the longest at 114 days.
Positive outlook but cautious buying behaviour
As listings expand across markets, O’Brien pointed out that the increase in days on the market suggests buyers are taking a cautious approach.
“Buyers have access to a good selection of listings across all markets, and the upward trend in median sale prices for both farmlets and bareland is encouraging,” he said, “but the longer time on the market shows buyers are still cautious about purchases.”
With a healthy stock of listings and a generally upward trend in prices, the lifestyle property market is expected to remain active, drawing in cautious but confident buyers as interest rates ease.
Click here for the REINZ Lifestyle Press Release.
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