The Easing Trend Continues
Data released today by the Real Estate Institute of NZ (REINZ) shows there were 100 fewer lifestyle property sales (-5.5%) for the three months ended January 2018 than for the three months ended January 2017. Overall, there were 1,726 lifestyle property sales in the three months ended January 2018, compared to 1,959 lifestyle property sales for the three months ended January 2017 (-11.9%) and 1,826 lifestyle property sales for the three months ended December 2017.
7,591 lifestyle properties were sold in the year to January 2018, 1,399 (-15.3%) fewer than were sold in the year to January 2017. The value of lifestyle properties sold was $6.01 billion for the year to January 2018.
The median price for all lifestyle properties sold in the three months to January 2018 was $657,250 and was $74,250 higher compared to the three months ended January 2017 (+12.7%).
Brian Peacocke, Rural Spokesman, at REINZ says: “Sales figures for the 3-month period ending January 2018 confirm the easing trend that has emerged in recent months. The holiday period aside, the number of lifestyle properties sold in January 2018 is down 23% from the number sold in December 2017, making it the lowest monthly number of sales since January 2015. As part balance to the above, the median price continues to increase incrementally and is now at the highest level seen for some time.”
Points of Interest around New Zealand include:
• Northland/Auckland – consistent figures in Northland but a dramatic drop in Auckland; solid demand in Auckland continues for re-zoned land; there are slower sales over $1 million, but sales are solid under that level, good success with auction marketing campaigns but generally, mixed results around the city
• Waikato Central Districts – consistent results in Bay of Plenty, Rotorua and Taranaki, but substantial reductions in volumes in Waikato and Hawke's Bay
• Lower North Island – a slight easing in the Manawatu/Wanganui region but solid results to the south, particularly in the Wairarapa where Wellington purchasers remain a strong influence on the market
• Upper South Island – an easing of activity in the Nelson/Marlborough district, status quo on the West Coast, but a distinct reduction in Canterbury. Reports from mid Canterbury indicate the market is hard over $1m but good in the $650,000/$850,000 bracket
• Lower South Island – similar results throughout the deep south with volumes down slightly in Otago, but a reasonably active market in Southland in the $600,000/$800,000 range.
Four regions recorded an increase in sales compared to January 2017. Manawatu/Wanganui recorded the most substantial increase in sales (+27 sales) in the three months to January 2018 compared to January 2017. Compared to December 2017, three regions recorded an increase in sales.
Most of the regions saw the median price of lifestyle blocks increase between the three months ending January 2017 and the three months ending January 2018. The most notable examples were in West Coast (+90%), Wellington (+43%) and Southland (+37%). The most notable exception was Taranaki whose median price fell 12% over the year.
The median number of days to sell for lifestyle properties was the same in the three months to January 2018 as in the three months to January 2017, sitting at 55 days. Compared to the three months ended December 2017 the median number of days to sell stayed the same. Nelson recorded the shortest number of days to sell in January 2018 at 44 days, followed by Hawke’s Bay (46 days), Bay of Plenty (48 days), Auckland (51 days) and Wellington (52 days). West Coast recorded the longest number of days to sell at 427 days, followed by Taranaki at 147 days and Gisborne at 90 days.
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.