Recommended.co.nz | Guide2.co.nz | Voxy.co.nz | Gimme.co.nz
Homepage | login or create an account

Lifestyle market delivering record prices and sales volumes

Read More:
Contributor:
Fuseworks Media
Fuseworks Media

Data released today by the Real Estate Institute of NZ ("REINZ") shows there were 401 more lifestyle property sales (+19%) for the three months ended June 2016 than for the three months ended June 2015.

Overall, there were 2,480 lifestyle property sales in the three months ended June 2016, compared to 2,518 lifestyle property sales for the three months ended May 2016 (-2%), and 2,079 lifestyle property sales for the three months ended June 2015.

8,967 lifestyle properties were sold in the year to June 2016, 27% more than were sold in the year to June 2015, the highest number of annual sales since March 2004. The value of lifestyle properties sold reached a new record of $6.67 billion for the year to June 2016.

The median price for all lifestyle properties sold in the three months to June 2016 rose by $30,000 to $580,000 compared to $550,000 recorded for three months ended May 2015 (+5.5%) to reach a new record high, the third consecutive new record median price this year. The median price rose $4,500 (+0.8%) compared to May. Auckland and Otago regions also reached new record high median prices in the three months to June 2016.

"REINZ data released for the three months ending June paint a clear and unequivocal picture; a strong market with strong prices," says REINZ Rural Spokesman Brian Peacocke. "The Lifestyle market is very similar to the residential market with strong demand across the country with the greatest limitation being the availability of properties for sale.

"The shortage of properties for sale is consistent across the country, and is likely a contributor to the easing of sales in some regions between May and June. Of note are some particularly strong sales of land within the wider fringe of the Auckland urban area that would appear to be destined for residential subdivision in due course.

"Indications from around the country suggest the current robust market is likely to continue for some months yet."

12 regions recorded an increase in sales compared to June 2015. Waikato recorded the largest increase in sales (+119) in the three months to June 2016 compared to June 2015, Wellington saw an increase of 67 sales and Otago an increase of 65 sales. Compared to May 2016, six regions recorded an increase in sales.

The national median price for lifestyle blocks rose by $30,000 (+5.5%) from $550,000 for the three months to June 2015 to $580,000 for the three months to June 2016. The median price for lifestyle blocks in Auckland rose by $317,000 (+32.7%) from $969,500 for the three months to June 2015 to $1,286,500 for the three months to June 2016 to reach another record high. Over the same time period, the median price rose by 5.7% in Waikato to $518,500, and rose by 8.3% in Canterbury to $650,000.

The median number of days to sell for lifestyle properties improved by one day in the three months to June 2016 compared to the three months to May to sit at 57 days. Compared to the three months ended June 2015 the median number of days to sell improved by 10 days. Auckland recorded the shortest number of days to sell in June 2016 at 41 days, followed by Waikato at 47 days and Hawke’s Bay at 54 days. West Coast recorded the longest number of days to sell at 139 days, followed by Manawatu/Wanganui at 86 days, and Otago at 85 days.

About guide2.co.nz : money

Find the latest money news and 'how to' guides on Guide2Money.

Ask our researchers your personal finance questions.

Your Questions. Independent Answers.