Prices Continue to Firm Although Volumes Easing

News Release 23 January 2016

Prices Continue to Firm Although Volumes Easing

Summary

Data released today by the Real Estate Institute of NZ (“REINZ”) shows there were 86 fewer lifestyle property sales (-3.8%) for the three months ended December 2016 than for the three months ended December 2015. Overall, there were 2,191 lifestyle property sales in the three months ended December 2016, compared to 2,205 lifestyle property sales for the three months ended November 2016 (-0.6%), and 2,277 lifestyle property sales for the three months ended December 2015.

9,036 lifestyle properties were sold in the year to December 2016, 11% more than were sold in the year to December 2015. The value of lifestyle properties sold was $6.90 billion for the year to December 2016.

The median price for all lifestyle properties sold in the three months to December 2016 hit a new record high of $583,000 and was $33,000 higher compared to the three months ended December 2015 (+6.0%). The median price also rose $13,000 (+2.3%) compared to November.

“Sales volumes for the three-month period ending December 2016 were solid compared to previous periods, but below that barometer, some of the usually high performing regions experienced significant reductions in sales in December compared to the solid lift recorded for the month of November, says REINZ Rural Spokesman Brian Peacocke. “By way of compensation, some of the smaller areas in the mid to lower North Island and Southland did credit to themselves with improved sales activity.”

Regional highlights include:

• Northland / Auckland / Waikato / Bay of Plenty – all regions recorded significant drops in in volumes in December compared to the month of November and in the case of the Bay of Plenty, the lowest monthly figure for 22 months;
• Gisborne - steady and solid;
• Hawke’s Bay / Taranaki / Wellington - a good healthy lift in sales from the previous month;
• Manawatu / Wanganui – down from November, but reasonably solid;
• Nelson / Marlborough / Canterbury / Otago – a noticeable reduction on the November high;
• West Coast – reflecting a quieter run of activity; and
• Southland – steady as a rock and quite consistent.

Nine regions recorded an increase in sales compared to December 2015. Wellington recorded the largest increase in sales (+29), Manawatu/Wanganui and Canterbury saw an increase of 23 sales and Southland an increase of 19 sales. Compared to November, five regions recorded an increase in sales.

The national median price for lifestyle blocks rose by $33,000 (+6.0%) for the three months to December 2016 compared to the three months to December 2015 to reach a new record high. The median price for lifestyle blocks in Auckland rose by $160,000 (+15.2%) from $1,050,000 for the three months to December 2015 to $1,210,000 for the three months to December 2016. Over the same period, the median price rose by 15.4% in Waikato to $600,000, and by 0.2% to $636,250 for Canterbury.

The median number of days to sell for lifestyle properties improved by six days in the three months to December 2016 compared to the three months to December 2015 to sit at 47 days, a new record low number of days to sell across New Zealand. Compared to the three months ended November the median number of days to sell improved by two days. Gisborne recorded the shortest number of days to sell in December 2016 at 32 days, followed by Waikato at 37 days and Auckland at 42 days. West Coast recorded the longest number of days to sell at 207 days, followed by Nelson at 73 days.

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Real Estate Institute of New Zealand
For more real estate information and market trends data, visit www.reinz.co.nz. For New Zealand's most comprehensive range of listings for residential, lifestyle, rural, commercial, investment and rental properties, visit www.realestate.co.nz - REINZ's official property directory website.

Editors Note:
The information provided by REINZ in relation to the lifestyle real estate market covers the most recently completed three month period; thus references to December refer to the period from 1 October 2016 to 31 December 2016.

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