SunLive – winter cold dampens the lifestyle market

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In the three months to July 2021, there were 179 fewer lifestyle property sales (-7.9 percent) than in the three months to June 2021.

That comes from the latest data from the Real Estate Institute of New Zealand.

In total, there were 2089 lifestyle property sales in the three months to July 2021, compared to 1955 lifestyle property sales for the three months to July 2020 (+6.9 percent) and 2268 lifestyle property sales for the three months to June 2021.

A total of 10,235 lifestyle properties were sold in the year to July 2021, 3,367 (+49.0 percent) more than in the year to July 2020. The value of the lifestyle properties sold amounted to 10.73 billion US dollars by July 2021.

The median price for all lifestyle properties sold in the three months to July 2021 was $ 925,000, which is $ 185,000 higher than in the three months to July 2020 (+25.0 percent).

The median price for bare land lifestyle properties sold in the three months ended July 2021 was $ 475,000, up $ 118,478 higher than the three months ended July 2020 (+33.2 percent).

The median price for Farmlet Lifestyle properties sold in the three months ended July 2021 was $ 1,100,000, up $ 240,000 higher than in the three months ended July 2020 (+27.9 percent).

“While the sales results for the three-month period up to July 2021 reflected a relaxation compared to the previous sales period up to June 2021, the numbers were still well above the corresponding periods with the end of July 2019 and July 2020,” says REINZ country spokesman Brian Peacocke.

“Reports reflect continued strong demand and while sales volumes remain solid, the rising median price reflects limited supply.”

Attractions in New Zealand include:

Upper North Island

  • • An increase in sales in Northland, but a significant decrease in the median price

  • • The opposite was the case in the Auckland area, which saw sales drop 20 percent, median price up 10 percent to a record $ 1,760,000

  • • The broader Waikato / King Country / Taupo region benefited from a good increase in sales volumes, but a surprising, albeit slight, relaxation in the mid-price segment

  • • Bay of Plenty / Rotorua reacted strongly to last month’s slump in sales with a 50 percent volume increase, but remained below the results of Fall 2021 and Spring 2020; however, the median price collapsed by 18 percent.

Central North Island

  • • Gisborne / Hawke’s Bay held the levels of the last few months, but were still 60 percent below the high reached in spring 2020, with Gisborne feeling the effects of this decline very much; however, the median price benefited from an equally massive increase of 35 percent and recorded its strongest level to date at USD 1,320,000

  • • Taranaki was able to increase its sales volume slightly, but also recorded an increase in the average price of 12/13 percent to almost 930,000 US dollars, which is a record for the province.

Lower North Island

  • • Manawatu / Wanganui remained numerically the same, but was associated with a significant decline in the median price

  • • Wairarapa maintained its consistently strong fan base with a 15 percent volume increase and a 22 percent price increase, while activity in the Wellington District was particularly subdued.

Upper South Island

  • • Nelson / Marlborough maintained popular support with persistence in sales and maintaining a strong median price

  • • Canterbury was able to keep its sales figures well distributed, with the median price recovering slightly compared to the previous quarter

  • • West Coast did well, with sales up 10% and price up 22%.

Lower South Island

  • • Otago continued to feel the effects of lower sales last month, seeing a dramatic 58 percent drop in average price due to lower sales in the Central Otago / Queenstown-Lakes counties

  • • In contrast, the gloomy Southlanders outperformed their northern neighbors by staying the same but achieving a meritorious price increase of 25 percent; However, the reported figure of $ 529,000 was well below the high of $ 760,000 reached in May of this year.

Ten regions saw sales increase compared to July 2020, with Otago (+40 sales) and Waikato (+35 sales) seeing the largest increases. Manawatu-Wanganui (-26 sales) and Gisborne / Hawke’s Bay (-11 sales) saw the largest sales declines in the three months ended July 2021 compared to the three months ended July 2020, and the region saw sales increase.

The median price for lifestyle blocks rose in eleven regions between the three months to July 2020 and the three months to July 2021. The most notable examples were Gisborne / Hawke’s Bay (+67.9 percent) and Waikato (+37.8 percent) with the largest declines were seen in the West Coast (-12.9 percent) and Southland (0.2 percent).

The average number of sales days for lifestyle properties in the three months to July 2021 was 46 days shorter than in the three months to July 2020 and was 43 days. Manawatu-Wanganui (38) and Wellington (41) had the shortest sales days in July 2021. West Coast (94) and Northland (69) had the longest sales days.