Property Passion Persists

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 298 less lifestyle property sales (-9.7%) for the three months ended January 2021 than for the three months ended December 2020. Overall, there were 2,773 lifestyle property sales in the three months ended January 2021, compared to 1,800 lifestyle property sales for the three months ended January 2020 (+54.1%), and 3,071 lifestyle property sales for the three months ended December 2020.

9,037 lifestyle properties were sold in the year to January 2021, 1,888 (26.4%) more than were sold in the year to January 2020. The value of lifestyle properties sold was $8.39 billion for the year to January 2021.

The median price for all lifestyle properties sold in the three months to January 2021 was $847,000 and was $121,500 higher compared to the three months ended January 2020 (+16.7%).

Brian Peacocke, Rural Spokesman, at REINZ says: “Whilst the 3-month period ending January 2021 reflected a continuation of a very strong market throughout the country, the actual month of January at 642 sales reflected a nose-dive from the results over the preceding six months which recorded an average figure of 980 sales per month across the country – an incredible performance.

“All regions apart from Gisborne were impacted in the drop referred to above, with results in some locations down in excess of 50%.

“Irrespective of the reduction in volumes, which after all did coincide with the annual holiday period, the median price for the country, at $847,000, was still an outstanding result,” he concludes.

A quick round up for New Zealand includes: -

• Upper North - Acknowledging the reduction in volumes noted, Northland had a well balanced performance across the region, equally, the pattern throughout the Auckland location remained strong, particularly in Rodney and Franklin where the median price remained on par, but Waikato lost a lot of ground in terms of volumes, albeit experienced a strong lift of 9.5% in the median price
• Mid North Island - Sales volumes in the Bay of Plenty/Rotorua district for January were decimated, particularly in the Western Bay of Plenty, yet the median price held; Gisborne results were modest whilst Hawke’s Bay lost 25% in volume although improved in price from the previous period; Taranaki sales really caved in with a 59% drop compared to Manawatu/Wanganui, Wairarapa and Wellington which rode out the storm relatively well, as well as maintaining par in terms of median price
• Upper South Island - Nelson/Marlborough dropped a solid 38.5% in sales volumes with Marlborough being impacted more heavily than the Tasman district; values remained steady; the situation was very similar for sales on the West Coast albeit values eased; Canterbury experienced a lesser easing in volumes at 21%, but consistently solid sales throughout the Waimakariri and Selwyn districts kept the median price close to par; similarly, Ashburton activity was very steady
• Lower South Island - Activity in Otago and Southland contracted dramatically over the holiday period with reductions in sales volumes of 53% and 56% respectively, those losses being spread evenly across all districts; values eased slightly in Otago but in contrast, improved slightly in Southland.

All 14 regions recorded an increase in sales compared to January 2020 with Auckland (+233 sales) and Canterbury (+186 sales) observing the biggest increases. Southland recorded the smallest increase in sales (+1 sales) in the three months to January 2021 compared to the three months to January 2020. Compared to the three months to December 2020, one region recorded an increase in sales.

Thirteen regions saw the median price of lifestyle blocks increase between the three months ending January 2020 and the three months ending January 2021. The most notable examples were in Gisborne (+60%), Bay of Plenty (+38%) and Southland (+28%) and only exception was West Coast (-14%).

The median number of days to sell for lifestyle properties was nine days less in the three months to January 2021 than in the three months to January 2020, sitting at 49 days. Compared to the three months ended December 2020 the median number of days to sell was one day shorter. Manawatu/Wanganui recorded the shortest number of days to sell in January 2021 at 34 days, followed by Wellington (37 days). West Coast recorded the longest number of days to sell at 135 days, followed by Northland at 66 days.

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