Holiday Impact Weighs on Lifestyle Property Market

News Release 16 February 2017

Holiday Impact Weighs on Lifestyle Property Market

Summary

Data released today by the Real Estate Institute of NZ (“REINZ”) shows there were 150 fewer lifestyle property sales (-7.1%) for the three months ended January 2017 than for the three months ended January 2016. Overall, there were 1,959 lifestyle property sales in the three months ended January 2017, compared to 2,191 lifestyle property sales for the three months ended December 2016 (-10.6%), and 2,109 lifestyle property sales for the three months ended January 2016.

8,965 lifestyle properties were sold in the year to January 2017, 8% more than were sold in the year to January 2016. The value of lifestyle properties sold was $6.89 billion for the year to January 2017.

The median price for all lifestyle properties sold in the three months to January 2017 remained at its record high of $583,000 and was $33,000 higher compared to the three months ended January 2016 (+6.0%).

“All regions apart from the West Coast of the South Island have experienced significant reductions in sales volumes during January 2017, making this the lowest month for volumes over the last two years”, says REINZ Rural Spokesman Brian Peacocke.

“Reports confirm January as being challenging from a sales perspective, but that listings are starting to flow after the conclusion of the holiday period.”

Points of interest include:

· Northland / Auckland – reduced volumes with buyer uncertainty making it harder to get transactions across the line; often good initial response to new listings then interest tapers off; Government LVR rules are impacting on the market;

· Waikato - a major reduction in sales volumes over recent months; listings in short supply but improving; Auckland purchasers remain active; strong subdivision activity in north Waikato;

· Bay of Plenty - a 50 % drop in volumes over the last two months; strong prices for quality properties;

· Hawke’s Bay / Manawatu / Wanganui / Taranaki – reasonable activity in the mid-price range with volumes holding closer to recent levels;

· Wellington / Wairarapa – more consistency within the region with very strong demand in the Wairarapa where prices are lifting and some properties are selling within a week of being listed;

· Nelson / Marlborough - a significant drop-off in sales volumes from previous months albeit prices remain strong;

· Canterbury – some very strong sales at the top end of the market although stocks are limited; moderate activity in the mid-range and quieter at the lower end; volumes in total down considerably;

· Otago – steady activity throughout the central region with strong prices in the Lakes district; reduced volumes but solid sales and prices around Dunedin; and

· Southland – close to status quo within the southern region with modest prices holding steady.

Six regions recorded an increase in sales compared to January 2016. Canterbury recorded the largest increase in sales (+32) in the three months to January 2017 compared to January 2016. Manawatu/Wanganui saw an increase of 24 sales and Otago an increase of 14 sales. Compared to December 2016, no regions recorded an increase in sales.

The national median price for lifestyle blocks rose by $33,000 (+6.0%) for the three months to January 2017 compared to the three months to January 2016 to remain at December’s record high. The median price for lifestyle blocks in Auckland rose by $160,000 (+15.4%) from $1,037,500 for the three months January 2016, to $1,197,500 for the three months to January 2017. Over the same period, the median price rose by 4.4% in Waikato to $570,000, and by 2.8% to $650,000 for Canterbury.

The median number of days to sell for lifestyle properties improved by four days in the three months to January 2017 compared to the three months to January 2016 to sit at 49 days. Compared to the three months ended December 2016 the median number of days to sell eased by two days. Waikato recorded the shortest number of days to sell in January 2017 at 38 days, followed by Auckland at 43 days and Hawke’s Bay at 45 days. West Coast recorded the longest number of days to sell at 134 days, followed by Otago and Taranaki at 67 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 January refer to the period from 1 November 2016 to 31 January 2017.

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