By Lifestyle properties in New Zealand are seeing a significant uptick, signaling strong market confidence as the year progresses.
The latest figures from the Real Estate Institute of New Zealand (REINZ) reveal a promising rise in the lifestyle property sector. In the quarter ending September 2024, sales hit 1,400, marking a 3.3% increase from the previous quarter and an impressive 11.8% jump from the same period last year.
Steady Growth Across the Board
Lifestyle properties are clearly on the rise. Over the past year leading up to September, a total of 5,699 lifestyle homes changed hands. That’s 234 more than the previous year, pushing the total sales value to a hefty $6.34 billion.
The numbers aren’t just climbing; they’re climbing steadily. The median price for these properties saw a nice bump too. In the last three months, the median price hit $945,000, up by $35,000 from last year. That’s a 3.8% increase. Bareland lifestyle properties also saw a slight rise, with median prices inching up by $500 to $450,000.
Farmlet lifestyle properties weren’t left behind either. Their median price reached $1,050,000, a 2.7% increase from 2023. It’s clear that buyers are willing to invest more in these types of properties.
Regional Shifts: Who’s Winning and Who’s Losing
Sales aren’t uniform across New Zealand. Seven regions saw more sales compared to September 2023. Northland led the pack with 63 additional sales, followed by Waikato with 42 more. But it wasn’t all smooth sailing everywhere. Taranaki and Bay of Plenty saw declines, dropping by 18 and 8 sales respectively.
Comparing to August 2024, eight regions had increased sales. It’s interesting to see how regional dynamics are playing out in this market.
Price Movements: Where Are the Peaks and Valleys?
When it comes to median prices, ten regions experienced an increase. The West Coast saw a whopping 74.3% jump, and Taranaki wasn’t far behind with a 21.2% rise. On the flip side, Auckland and the Nelson/Marlborough/Tasman areas saw their median prices dip by 4.5% and 2.7% respectively.
Here’s a quick snapshot:
| Region | Median Price Change (%) |
|---|---|
| West Coast | +74.3 |
| Taranaki | +21.2 |
| Auckland | -4.5 |
| Nelson/Marlborough/Tasman | -2.7 |
These shifts indicate varying levels of demand and investment across regions. West Coast’s surge is particularly noteworthy, possibly reflecting increased interest in that area.
Time on Market: Buyers Taking Their Time
The median number of days to sell a lifestyle property was 95 days, which is 18 days longer than the same period last year. West Coast properties sold the fastest, taking just 65 days on average. On the other hand, properties in Auckland lingered the longest, averaging 114 days on the market.
This trend suggests that while more properties are selling, buyers are still being cautious. Maybe they’re looking for the perfect spot or waiting for the right time to invest.
Insights from the Experts
Shane O’Brien, REINZ Rural Spokesperson, shared his thoughts on the market’s direction. “The September sales results reflect a continuation of the positive momentum in the market as we approach spring. The recent reduction in interest rates and indications of further decreases are boosting buyer confidence. This positive trend is expected to persist throughout the spring and summer selling season, leading up to Christmas,” he said.
O’Brien also noted, “Buyers have access to a good selection of listings across all markets, and the upward trend in median sale prices for both Farmlets and Bareland is encouraging. However, the increase in the average days on the market suggests that buyers are still cautious when purchasing.”
What’s Driving the Surge?
Several factors are contributing to this rise in lifestyle property sales:
- Interest Rates: Lower rates make borrowing cheaper, encouraging more people to buy.
- Market Confidence: With steady growth, buyers feel more secure in their investments.
- Seasonal Trends: As spring approaches, more buyers are looking to move before the holiday season.
- Regional Appeal: Certain areas like Northland and Waikato are becoming hotspots for lifestyle properties.
Looking Ahead
The outlook remains positive. If the current trends continue, the lifestyle property market in New Zealand is set to keep growing. Sellers might find it a good time to list their properties, while buyers can enjoy a robust selection to choose from.