Lifestyle property market sales drop, prices rise

by Krizzel Canlas17 Aug 2017
Lifestyle properties sold in the last three months have registered a 19.2% fall, according to a report from the Real Estate Institute of New Zealand.

The report showed that 1,984 lifestyle properties sold in the three months ended in July, down by 471 from a year ago.

For the year ended in July, a total of 8,274 lifestyle properties were sold, down by 8.7% or 789 fewer from a year ago. The value of lifestyle properties sold was $6.41bn for the year to July.

“The general easing in sales volumes for the latest three month period mirrors the situation in the residential market throughout New Zealand whereby the mix of LVR’s imposed by the Reserve Bank, security of employment and the uncertainty surrounding the forthcoming election are contributing factors,” REINZ rural spokesman Brian Peacocke said.

Three regions recorded an increase in sales with Wellington and West Coast recording the largest increase in sales, up by 10 sales in the last three months compared from a year ago.

While the sales data for the reporting period showed increases in three regions, according to Peacocke, figures for the month of July alone revealed only the Northland and the West Coast regions registered increase in sales volumes.

In July, Peacocke said that the Bay of Plenty, Canterbury and Auckland have recorded decreases in the volumes of sales, down by 33%, 29% and 24% respectively from the previous month. “Reports confirm quality listings remain in short supply, thus maintaining pressure on prices.”

Peacocke said that over the last three months, Gisborne was consistently steady and has maintained its level of sales.

The data from REINZ also showed the median price for all lifestyle properties were up $10,000, sitting at $580,000, with Nelson hitting a new record at $732,500.

In Auckland, median price for lifestyle blocks fell by 6.4%, to $1,180,000 for the last three months, while Canterbury recorded a drop of 5.3% to $611,000. Over the same period, median price in Waikato rose by 13.6% to $636,000.
 

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