Improving residential sector lifts lifestyle sales, with good weather breathing life into the rural sector
Lifestyle and rural sales saw a solid boost this spring, with the Real Estate Institute of New Zealand (REINZ) commenting that the rising median price was “evidence of good health” in the sectors.
Property sales rose by +6.2% for the three months ended November 2018 compared to the previous month, with REINZ recording a total of 1,769 sales. The median price for lifestyle properties lifted by +7.3% to $665,000, $45,000 higher than the previous three-month period.
Regions of most activity included NelsonMarlborough, which saw a “healthy” 100% rise in sales volumes from October 2018, and the Bay of Plenty/Rotorua/Taupo also saw a flood of Auckland buyers showing interest in its river and waterfront properties.
“Lovely spring conditions inevitably improves morale,” rural spokesman Brian Peacocke stated. “This, combined with an improving residential market, stimulated in part by the easing of LVR constraints imposed on the residential sector, is having a beneficial flow-on effect on the lifestyle market.”
The rural market has also moved along at a steady pace, with REINZ recording a +6.3% increase in farm sales for the there months ended November 2018 compared to November 2017. The median price lifted by +13.5% to $30,411, and the REINZ All Farm Price Index - which adjusts for differences in farm size, type and location - showed a 3.6% increase.
“Climactic conditions during November 2018 continue to benefit most of the rural sector, with widespread rain and warm temperatures creating abundant pasture growth across the country,” Peacocke said.
“However, heavy rain and high humidity are causing grief within segments of the horticulture, arable and vegetable growing sectors, viz; cherry damage in Central Otago, difficulty with grain crops in some regions, and as a result of an unseasonal hailstorm, the total obliteration of a large asparagus crop in central Waikato.”
“Within this unsettled environment, sheep, beef, arable and horticulture properties have continued to create good demand and sell well,” he concluded. “By contrast, perhaps as a result of vendor expectations and the reduced confidence amongst some purchasers, a number of dairy farms have failed to sell.”
