Dry mild autumn pushes solid lifestyle sales

Lifestyle property market saw a solid boost this autumn, with 8.7% increase in sales for the three months to April 2019, the highest level since the December 2018 quarter.

According to the Real Estate Institute of New Zealand (REINZ), there were 1,752 lifestyle property sales for the three months to April, compared to 1,612 in March. However, the latest data from REINZ also shows an 8.7% year-on-year fall on sales, with only 1,752 lifestyle property sales for the three months to April, compared to 1,919 sales from a year ago.

The report suggests the median price for all lifestyle properties sold in the three months to April was $680,000, up 4.6% from a year ago. This maintenance of the median sale price at a very strong level is good news, REINZ rural spokesperson Brian Peacocke said.

“In contrast to the rural sector, the dry mild autumn has created benevolent conditions for the lifestyle sector, and current cooler temperatures have established an ideal environment throughout the country for a delightful explosion of vivid autumn colours, particularly in the south,” Peacocke noted.

Peachocke emphasised figures for April in isolation show a distinct decline, with all regions recording a drop in sales numbers except for Hawke’s Bay (+1), Gisborne (0) and Otago (+26).

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Moreover, eight regions saw the median price of lifestyle blocks increase between the three months ending April 2018 and the three months ending April 2019. The most notable examples were in Gisborne (+61%), Northland (+46%) and Southland (+36%) and the most notable exceptions were West Coast (-44%) and Hawke’s Bay (-14%).

The median number of days to sell for lifestyle properties was four days longer in the three months to April 2019, compared from the previous year, sitting at 66 days. Month-on-month, the median number of days to sell was three days shorter.