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Lifestyle market performing well across NZ - REINZ

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Fuseworks Media
Fuseworks Media

Data released today by the Real Estate Institute of NZ ("REINZ") shows there were 568 more lifestyle property sales (+34.8%) for the three months ended November 2015 than for the three months ended November 2014. Overall, there were 2,200 lifestyle property sales in the three months ended November 2015, compared to 2,123 lifestyle property sales for the three months ended October 2015 (+3.6%), and 1,632 lifestyle property sales for the three months ended November 2014. 8,003 lifestyle properties were sold in the year to November 2015, 26.3% more than were sold in the year to November 2014, the higher number of annual sales in almost 10 years. The value of lifestyle properties sold reached a new record of $5.911 billion for the year to November 2015.

The median price for all lifestyle properties sold in the three months to November 2015 rose by $30,000 to $545,000 compared to $515,000 recorded for three months ended November 2014 (+5.8%). The median price rose 3.8% compared to October.

"Month after month the lifestyle market strengthens in terms of volumes and prices, with some regions experiencing particularly buoyant conditions during the spring of 2015,"says REINZ Rural Spokesman Brian Peacocke.

Highlights include:

- A very good market in the lower North and to the south of Auckland City; solid volumes and prices across the full range of properties with instances of vendor expectations being exceeded; land banking evident with particularly strong demand for land with re-zoning potential in good locations close to urban areas;

- A steady market in the Waikato with less evidence of activity from Auckland based purchasers; strong demand for entry level properties and bare land with an increasing requirement for the newer types of dwellings reflecting modern building standards;

- Very strong demand in the Bay of Plenty with a resulting shortage of stock; purchasing strength reflects stronger locally based activity more so than in previous periods where external influences were dominant;

- A good steady market in Hawkes Bay with an anticipated shortage of stock; upward pressure

on prices due to the mix of market activity and potential vendors sitting tight;

- A healthy increase in sales volumes in the greater Wellington/Horowhenua/Wairarapa region where local buyers dominate;

- Confident activity and good volumes of sales in the Nelson/Marlborough area;

- A good solid market around Christchurch with a substantial increase in volume during

November; a reduction in the flow from the north of the city to the areas in the south; and

- A continuation of steady activity in the lower South Island, albeit a bit sluggish in Southland.

12 regions recorded an increase in sales compared to November 2014. Waikato recorded the largest increase in sales (+155) in the three months to November 2015 compared to November 2014, Northland saw an increase of 111 sales and Bay of Plenty an increase of 94 sales. Compared to October 2015, 10 regions recorded an increase in sales with five regions recording a decrease.

The national median price for lifestyle blocks rose by $30,000 (+5.8%) from $515,000 for the three months to November 2014 to $545,000 for the three months to November 2015. The median price for lifestyle blocks in Auckland rose by $205,000 (+23.4%) from $875,000 for the three months to November 2014 to $1,080,000 for the three months to November 2015 to reach a new record high. Over the same period, the median price fell by 4.9% in Waikato to $475,000, and rose by 10.7% in Canterbury to $620,000. Compared to October 2015 the national median sales price rose by $20,000 (+3.8%).

The median number of days to sell for lifestyle properties improved by 10 days, from 67 days for the three months to the end of October to 57 days for the three months to the end of November. Compared to the three months ended November 2014 the median number of days to sell improved by 15 days. Auckland recorded the shortest number of days to sell in November 2015 at 38 days, followed by Canterbury at 48 days and Gisborne at 50 days. West Coast recorded the longest number of days to sell at 142 days, followed by Otago at 134 days, and Manawatu/Wanganui at 112 days.

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