Lifestyle property sales increase to record high

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The number of lifestyle properties sold across the country was the highest ever for the month of July as people look to reassess their living situations as a result of COVID-19 according to the latest data from the Real Estate Institute of New Zealand - REINZ.

In July, there were 849 lifestyle properties sold compared to 594 in July last year – a 42.9 per cent uplift. This was also an uplift on June’s sales volumes where 643 lifestyle properties were sold.

“For a while now we’ve been hearing stories of people purchasing lifestyle properties as a result of COVID-19 and now we’ve seen this translate in the data,” says REINZ Chief Executive Bindi Norwell.

“Over the last few months sales of lifestyle properties have been increasing, and last month saw the highest number of lifestyle properties sold in a July month ever,” says Bindi.

“As soon as the country went into lockdown agents started receiving calls from people wanting more space and lifestyle options given people were spending more time at home. Now that technology makes working from home so viable, COVID has been a strong catalyst for many people to make the leap they’ve been talking about for years.”

Breaking the data down around the country, the increasing interest in lifestyle properties is a trend that has been seen in every region, bar Marlborough (which saw sales volumes flat) and Nelson.

“Every region that saw an annual increase in sales volumes of lifestyle properties during July saw double digit increases which is an incredible result,” says Bindi.

“In fact, interest levels in lifestyle properties were so high in the Manawatu/Wanganui region that it was the highest number of lifestyle properties ever sold in Manawatu/Wanganui in a single month since records began. Additionally, sales volumes on the West Coast saw triple figure increases, with the number of lifestyle properties was up by 157.1 per cent when compared to July last year.”

In addition to significant increases in sales volumes, July also saw a significant increase in the median price per hectare of lifestyle properties.

Across the country, the median price of lifestyle blocks increased by 4.1 per cent to $750,000 compared to $720,577 in July last year, and up marginally from June’s median price of $745,000. This the highest median price in a July month since records for lifestyle data began.

Regions with the biggest increase in median price included:

Bay of Plenty: up 44.6 per cent from $650,000 in July last year to $940,000

Canterbury: up 27.4 per cent from $570,000 to $726,250

Gisborne: up 26.9 per cent from $417,500 to $530,000.

Additionally, the Bay of Plenty, Canterbury, Northland and Southland all had their highest median price for a July month.

“It’s not surprising we’ve seen the price of lifestyle blocks rise in many parts of the country given the demand for these sorts of properties. Now that the country has gone back into ‘lockdown 2.0’ it will be interesting to see if there is even greater demand going forward and whether prices continue to rise as we head towards the warmer months of the year; especially as there is an increased interest from offshore buyers looking towards opportunities in New Zealand,” says Bindi.

 

Sales Volume

     
       

Region

Jul-19

Jul-20

% diff

Auckland Region

85

140

64.7%

Bay of Plenty Region

45

63

40.0%

Canterbury Region

85

100

17.6%

Gisborne Region

5

7

40.0%

Hawke's Bay Region

28

33

17.9%

Manawatu-Wanganui Region

46

88

91.3%

Marlborough Region

11

11

0.0%

Nelson Region

3

1

-66.7%

Northland Region

60

96

60.0%

Otago Region

29

45

55.2%

Southland Region

23

31

34.8%

Taranaki Region

18

24

33.3%

Tasman Region

16

23

43.8%

Waikato Region

103

132

28.2%

Wellington Region

30

37

23.3%

West Coast Region

7

18

157.1%

New Zealand

594

849

42.9%

Median Sales Price

     
       

Region

Jul-19

Jul-20

% diff

Auckland Region

1,300,000

1,274,500

-2.0%

Bay of Plenty Region

650,000

940,000

44.6%

Canterbury Region

570,000

726,250

27.4%

Gisborne Region

417,500

530,000

26.9%

Hawke's Bay Region

900,750

655,000

-27.3%

Manawatu-Wanganui Region

575,000

572,500

-0.4%

Marlborough Region

750,000

890,000

18.7%

Nelson Region

-

-

 

Northland Region

592,500

640,000

8.0%

Otago Region

638,000

630,000

-1.3%

Southland Region

395,000

510,000

29.1%

Taranaki Region

623,500

613,500

-1.6%

Tasman Region

918,000

925,000

0.8%

Waikato Region

764,000

779,750

2.1%

Wellington Region

675,000

600,000

-11.1%

West Coast Region

295,000

183,750

-37.7%

New Zealand

720,577

750,000

4.1%




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