REINZ Rural and Lifestyle
News Release 17 November 2016
Has The Market Peaked?
Data released today by the Real Estate Institute of NZ (“REINZ”) shows there were 52 more lifestyle property sales (+2.5%) for the three months ended October 2016 than for the three months ended October 2015. Overall, there were 2,175 lifestyle property sales in the three months ended October 2016, compared to 2,230 lifestyle property sales for the three months ended September 2016 (-2.5%), and 2,123 lifestyle property sales for the three months ended October 2015.
9,115 lifestyle properties were sold in the year to October 2016, 17% more than were sold in the year to October 2015. The value of lifestyle properties sold was $6.91 billion for the year to October 2016.
The median price for all lifestyle properties sold in the three months to October 2016 was $20,000 higher at $545,000 compared to the three months ended October 2015 (+3.8%). The median price rose $15,000 (+2.8%) compared to September.
“Sales volumes in the lifestyle market for the three month period ending October 2016 remain strong but reflect a consistent easing over the last several months. Variable conditions are influencing the market but a shortage of supply is a constant theme, the net result being pressure on prices”, says REINZ Rural Spokesman Brian Peacocke.
Regional highlights include:
• A solid strengthening in volumes in Northland;
• An easing of volumes and shortage of supply reported in areas including Auckland, Waikato, Bay of Plenty, Hawke’s Bay and Taranaki;
• A strong market in the Rotorua area where $900,000 is deemed average, but good activity in the $1.5million to $1.7 million range, and strong interest from Auckland purchasers up to $2 million;
• Increased volumes in the Wanganui to Wellington region, with a brisk market in the Manawatu up to $1.2 million;
• Solid conditions in the Nelson / Marlborough region where sales volumes are very consistent;
• A continuing healthy market around Christchurch with strong interest in quality properties up to $1 million but slower above that level; a reluctant market in mid Canterbury; and
• Easing volumes throughout the Otago region but a good steady month of sales in October for Southland.
Nine regions recorded an increase in sales compared to October 2015. Wellington recorded the largest increase in sales (+60) in the three months to October 2016 compared to October 2015, Northland saw an increase of 44 sales and Manawatu/Wanganui an increase of 37 sales. Compared to September 2016, four regions recorded an increase in sales. Compared to October 2015 the number of sales for the three months to October 2016 rose by 52 sales.
The national median price for lifestyle blocks rose by $20,000 (+3.8%) for the three months to October 2016 compared to the three months to October 2015. The median price for lifestyle blocks in Auckland rose by $135,000 (+13.0%) from $1,035,000 for the three months to October 2015 to $1,170,000 for the three months to October 2016. Over the same time period, the median price rose by 31.9% in Waikato to a new record of $620,000, and rose by 5.5% to $612,000 for Canterbury.
The median number of days to sell for lifestyle properties improved by 11 days in the three months to October 2016 compared to the three months to October 2015 to sit at 56 days. Compared to the three months ended October the median number of days to sell improved by six days. Waikato recorded the shortest number of days to sell in October 2016 at 34 days, followed by Auckland at 42 days and Bay of Plenty at 48 days. West Coast recorded the longest number of days to sell at 200 days, followed by Nelson and Otago at 100 days.
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Real Estate Institute of New Zealand
For more real estate information and market trends data, visit www.reinz.co.nz. For New Zealand's most comprehensive range of listings for residential, lifestyle, rural, commercial, investment and rental properties, visit www.realestate.co.nz - REINZ's official property directory website.
The information provided by REINZ in
relation to the lifestyle real estate market covers the most
recently completed three month period; thus references to
October refer to the period from 1 August 2016 to 31 October