Lifestyle Market Reflects Resilience

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 120 fewer lifestyle property sales (-7.7%) for the three months ended August 2022 than for the three months ended July 2022. Overall, there were 1,439lifestyle property sales in the three months ended August 2022, compared to 1,893lifestyle property sales for the three months ended August 2021 (-24.0%) and 1,559 lifestyle property sales for the three months ended July 2022.

7,491lifestyle properties were sold in the year to August 2022, 3,389 (-31.1%) fewer than were sold in the year to August 2021. The value of lifestyle properties sold was $9.22 billion for the year to August 2022.

The median price for all lifestyle properties sold in the three months to August 2022 was $1,023,000 and was $103,000 higher compared to the three months ended August 2021 (+11.2%). The median price for Bare land Lifestyle properties sold in the three months to August 2022 was $475,000 and was $2,000 higher compared to the three months ended August 2021 (-0.4%). The median price for Farmlet Lifestyle properties sold in the three months to August 2022 was $1,200,000 and was $31,000 higher compared to the three months ended August 2021 (+2.7%).

Brian Peacocke, Rural Spokesman for REINZ, says: “Given the downward pressure currently being exerted on the residential market, sales figures for the lifestyle market for the three-month period ending August 2022 are reflecting a reasonable degree of resilience, particularly in the face of increasing interest rates and stricter lending criteria.

“Statistics reflect a steady market in the northern and central regions of the North Island, with reductions in sales volumes compared to last month being more severe in the lower extremities of the North Island — such as Taranaki, Gisborne/Hawkes Bay and Wairarapa/Wellington — then becoming equally pronounced in the lower South Island regions of Otago and Southland.

“The pattern of reduced sales volumes appears too inconsistent to draw reliable conclusions, other than that extended winter conditions may be more drawn out in some of those regions and have therefore suppressed enthusiasm.

“Nevertheless, it is interesting to note a gradual decrease in overall sales volumes for the June/July/August period over the last three years.

“Likewise, volatility within the median price makes it equally difficult to draw meaningful conclusions when seven regions had an increase, and six regions experienced a decrease.

“Suffice to observe the national median price for the current period, at $1,027,000, remains at a reasonably healthy level,” he concludes.

Points of Interest around New Zealand include:

Three regions recorded an increase in sales compared to August 2021, with Northland (+18 sales) and Taranaki (+4 sales) observing the greatest increases. Auckland (-161 sales) and Waikato (-83 sales) recorded the greatest decreases in sales in the three months to August 2022 compared to the three months to August 2021. Compared to the three months to July 2022, one region recorded an increase in sales.

Ten regions saw the median price of lifestyle blocks increase between the three months ending August 2021 and the three months ending August 2022. The most notable examples were in West Coast (+148.7%) and Otago (+34.8%), with the biggest decreases being in Taranaki (-9.3%) and Nelson/Marlborough/Tasman (-4.2%).

The median number of days to sell for lifestyle properties was nine days more in the three months to August 2022 than in the three months to August 2021, sitting at 55 days.

Southland (37 days) recorded the shortest number of days to sell in August 2022. Manawatu-Whanganui (72 days) recorded the longest number of days to sell.

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