New data reveals 'inconsistency' in numbers across the two markets
Data released by the Real Estate Institute of New Zealand (REINZ) has shown a mixed picture across rural and lifestyle sales, with downturns being observed across both markets despite property prices remaining strong.
REINZ recorded a 3.9% increase in farm sales for the three months ended August 2018 – however 14.2% fewer farms were sold year-on-year compared to August 2017, including fewer grazing, dairy, finishing and arable farms. The REINZ All Farm Price Index rose by 4.0% compared to August 2017, but fell by 1.6% in the three months to August 2018 compared to July 2018.
The lifestyle market has also taken a dip, and recorded a 9.7% decrease compared to the three months ended August 2017. The median price for all lifestyle properties increased by $55,000 compared to the three months ended August 2017.
According to REINZ rural spokesman Brian Peacocke, the overall picture for the lifestyle market appears healthy, albeit with a certain inconsistency in numbers across the regions on a month-by-month basis. He also says a downturn in rural sales is to be expected at this time of year, and that farm sales should significantly pick up as we head into the summer months.
“The lifestyle market is down in terms of value, but fairly solid in terms of price,” Peacocke said. “The sales data is notable for the consistency in total sales across the country, but equally notable for the inconsistency in numbers within the respective regions on a month by month basis.”
“The picture for the rural market is consistent with expectations, in that it’s down,” he continued. “There isn’t usually a lot of farm sale activity during the month of August, which is what one would expect. Weather-wise, some of the central and coastal regions of the North Island have been hammered by storms, and there have been a lot of land losses. However, that doesn’t appear to have had much of an impact on the farming sector in the South Island.”
“As we move into spring we’ll see an increase in farm sale volumes, which is traditional,” he concluded. “The market is somewhat difficult to determine at this stage, but the overall outlook for both sectors appears to be good.”
