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The latest data released today by the Real Estate Institute of New Zealand (REINZ) sheds light on the trends shaping the lifestyle property market, showcasing a steady increase in sales and some notable regional variations.
According to the report, there were eight more lifestyle property sales (0.7%) for the three months ended February 2024 compared to January 2024. This uptick in transactions is part of a broader positive trend, with overall lifestyle property sales totalling 1,162 in the three months to February 2024, up from 1,056 in February 2023 (+10.0%), and 1,154 in January 2024.
REINZ Rural spokesperson Shane O’Brien says the upturn in sales volume parallels an increase in activity in the residential market as buyers migrate between property sectors.
“A noticeable lift in the sale of farmlets with dwellings highlights a move by many buyers. Often it is to avoid increased building costs and timelines, but with the shrinking supply of bare land as Councils grapple with new government regimes restricting the further subdivision of productive land, this is also a contributor.”
O’Brien states many agents are reporting a flurry of enquiry from those looking to enjoy country living yet remain close to the built-up cities and larger provincial centres and the amenities afforded by these populated centres.
“The increased flexibility employers now offer allowing work-from-home opportunities is encouraging some buyers to “live the dream” in the country. Meanwhile, other buyers are cashing in on the stronger markets in the bigger centres and moving to the provincial centres buying in at comparatively lower prices with decreased traffic and travel times and good employment opportunities being offered in these areas.”
In terms of annual figures, 5,473 lifestyle properties were sold in the year to February 2024, with a total value of $6.03 billion. While this represents a decrease of 812 (-12.9%) from the previous year, it underscores the ongoing demand for lifestyle properties across New Zealand.
The median price for all lifestyle properties sold in the three months to February 2024 was $936,750, showing a slight decrease of $12,750 compared to February 2023 (-1.3%). However, the median price for Bare Land Lifestyle properties increased by 11.1% to $450,000, while the median price for Farmlet Lifestyle properties decreased by 4.5% to $1,050,000 over the same period.
Shane O’Brien comments on the regional dynamics, stating eight regions recorded an increase in sales compared to February 2023, with Gisborne/Hawkes Bay and Bay of Plenty observing the biggest increases. However, Otago and Manawatu-Wanganui experienced decreases in sales compared to the same period last year.
Key Regional Highlights
- Gisborne/Hawkes Bay: +28 sales compared to February 2023
- Bay of Plenty: +25 sales compared to February 2023
- Otago: -20 sales compared to February 2023
- Manawatu-Wanganui: -7 sales compared to February 2023
Additionally, four regions saw the median price of lifestyle blocks increase between February 2023 and February 2024, with the most notable examples in Manawatu-Whanganui and Wellington.
The report also revealed that the median number of days to sell for lifestyle properties increased by 14 days in the three months to February 2024 compared to the same period in 2023, with Manawatu-Whanganui recording the shortest number of days to sell and Gisborne/Hawkes Bay recording the longest.
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