Median prices are down and days to sell up
Recent data from REINZ has revealed a surge in lifestyle property sales, increasing 6.2% in the three months ending December compared to the preceding quarter.
A total of 1,297 lifestyle properties were sold during this period, slightly down by 2.6% from December 2022 but up from 1,221 in November.
In the year to December, 5,433 lifestyle properties changed hands, down 20.2% compared to the previous year. Despite this decrease, the total value of lifestyle property sales for the year amounted to $5.98 billion.
Shane O’Brien (pictured above), rural spokesman at REINZ, noted that the lifestyle property market concluded the year on a positive note, with sales amounting to $432 million, up from $411 million year-on-year. This optimistic trend aligns with the positive momentum observed in the residential market towards the end of 2023.
“There was also an increase in the sale of bareland blocks with 93 sales, up slightly since 2022,” O’Brien said. “The drop in the median sale price was seen as buyers adjusted to higher building and site development costs.
“This market has been somewhat impacted by government policy seeking to reduce the amount of productive land being subdivided with several regions having a significantly lower volume of bare land blocks available.”
Median prices and sales of lifestyle properties
The median price for all lifestyle properties sold in the three months ending December was $950,000, down by $90,000 (8.7%) compared to the same period in 2022. Specific categories within the lifestyle market also saw declines in median prices, with bareland lifestyle properties down 6.4% and Farmlet Lifestyle properties down 10.0% year-on-year.
Despite these variations, agents reported sustained volumes of inquiries, particularly in some South Island regions, where interest persists from other parts of the country.
Regional variance in lifestyle property sales and prices
Eight regions exhibited increased sales compared to December 2022, with Nelson/Marlborough and Bay of Plenty and Manawatu-Whanganui leading the way, with +17 and +9 sales, respectively. Conversely, Auckland and Canterbury experienced the most significant decreases in sales, with a decline of -51 and -21 sales, respectively. Compared to November, eight regions saw increased sales.
In terms of median prices of lifestyle blocks, three regions saw increases between December 2022 and December 2023. Wellington (+12.8%) and Southland (+4.3%) showed notable rises, while the largest declines were in West Coast (-40%) and Gisborne/Hawkes Bay (-20.4%).
Days to sell
The median number of days to sell a lifestyle property increased by 14 days in the three months ending December compared to the same period in 2022, averaging 64 days. Southland reported the shortest duration, with 48 days, while West Coast recorded the longest at 119 days, REINZ reported.
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