REINZ Lifestyle: The Trend Continues
Data released today by the Real Estate Institute of NZ (REINZ) shows there were 192 fewer lifestyle property sales (-11.1%) for the three months ended February 2018 than for the three months ended January 2018. Overall, there were 1,530 lifestyle property sales in the three months ended February 2018, compared to 1,809 lifestyle property sales for the three months ended February 2017 (-15.4%), and 1,722 lifestyle property sales for the three months ended January 2018.
7,469 lifestyle properties were sold in the year to February 2018, 1,406 (-15.8%) fewer than were sold in the year to February 2017. The value of lifestyle properties sold was $5.90 billion for the year to February 2018.
The median price for all lifestyle properties sold in the three months to February 2018 was $650,000 and was $50,000 higher compared to the three months ended February 2017 (+8.3%).
Brian Peacocke, Rural Spokesman, at REINZ says: “An interesting market in the lifestyle sector where all North Island regions experienced a reduction in volumes compared to the equivalent 3 monthly period 12 months ago, whereas all South Island regions held ground or achieved gains, albeit relatively small.
“The overall market however, reflects a general easing,” he concludes.
Points of Interest around New Zealand
• Auckland/Northland – a slump for Auckland to the lowest monthly level experienced for 3 years but steady recovery in Northland from the previous 2 months
• Waikato/Bay of Plenty – a steady level of sales in the Waikato which has reversed the lower levels of last month, but a gentle easing in the Bay of Plenty
• Gisborne/Hawke’s Bay/Taranaki/Manawatu/Wanganui – sales volumes improving albeit below par from 3 months ago
• Wellington/Wairarapa – a lift in volumes this month but steady compared to the medium term
• Nelson/Marlborough – relatively steady but a healthy increase from the same period in 2017
• Canterbury/West Coast – a good recovery from recent results in both Canterbury and the West Coast
• Otago – a strong market around Dunedin and North Otago, but mixed results in Central Otago albeit volumes have remained stable over the last 3 years
• Southland – remarkably consistent volumes over the last 3 years, with lifestyle activity being a mirror image of solid results in the residential market.
Two regions recorded an increase in sales compared to February 2017. Nelson recorded the most substantial increase in sales (+32 sales) in the three months to February 2018 compared to February 2017. Compared to January 2018, four regions recorded an increase in sales.
Most of the regions saw the median price of lifestyle blocks increase between the three months ending February 2017 and the three months ending February 2018. The most notable examples were in West Coast (+163%), Wellington (+48%) and Bay of Plenty (+21%). The most notable exception was Gisborne whose median price fell 41% over the year.
The median number of days to sell for lifestyle
properties was the same in the three months to February 2018
as in the three months to February 2017, sitting at 60 days.
Compared to the three months ended January 2018 the median
number of days to sell eased five days. Nelson recorded the
shortest number of days to sell in February 2018 at 48 days,
followed by Bay of Plenty (51 days), Auckland and Hawke’s
Bay (53 days), and Waikato (54 days). West Coast recorded
the longest number of days to sell at 322 days, followed by
Taranaki at 136 days and Gisborne at 95 days.