The sale of lifestyle blocks is booming and property owners can confidently say it is a seller's market across the country.
Between April and June this year there were 2480 lifestyle property sold. That’s a sales increase of 401 properties when compared to the same time last year (2079 properties sold).
If you’re thinking of selling your lifestyle property, check out our latest eBook: “Life Beyond the Lifestyle Block”.
It’s a seller’s market for lifestyle property owners
Currently, the average price of a lifestyle block is almost equivalent to the average price of a house in Wellington (the latest QV figures show the average house price in Wellington region at $516,430). And, as a result, demand for lifestyle blocks continues to increase.
The median price for a lifestyle block, which is usually between 1 and 4 hectares, hit a record high - the third consecutive record median price this year. New data from Real Estate Institute of New Zealand (REINZ) shows the median price for all lifestyle properties sold is $580,000 (an increase of $30,000).
For the year ending June 30, 2016, a total of 8,967 lifestyle properties were sold. That’s 27 per cent more than the previous year ending June 30, 2015 and the highest number of annual sales since March 2004. Additionally, the value of lifestyle properties sold reached a new record high of $6.67 billion for the year ending June 30, 2016.
REINZ rural spokesman Brian Peacocke said the data painted a clear picture of a lifestyle property strong market with strong prices.
"The lifestyle market is very similar to the residential market with strong demand across the country with the greatest limitation being the availability of properties for sale [. . .] The shortage of properties for sale is consistent across the country, and is likely a contributor to the easing of sales in some regions between May and June," says Peacocke.
Regions nationwide record an increase in lifestyle property sales
The Waikato region is reporting the largest increase in sales (119) in the three months to June 2016 (when compared to the same time last year). Wellington saw an increase of 67 sales and Otago, an increase of 65 sales.
The Auckland region reached new record high median prices for lifestyle property in the three months to June 30, 2016. Auckland rose by $317,000 (from $969,500 to $1,286,500). Meanwhile, the median prices in Canterbury rose 8.3 per cent topping in at $650,000. In the Waikato, the median price increased by 5.7 per cent to $518,500.
The median number of days to sell for lifestyle properties improved by just one day compared to the same period last year.
Auckland recorded the shortest number of days to sell (41 days), followed by Waikato (47 days) and Hawke's Bay (54 days). The West Coast recorded the longest number of days to sell (139 days), followed by Manawatu/Wanganui (86 days), and Otago (85 days).
For more information and some handy tips on how to get your lifestyle property ready for sale (and what comes next!) check out our latest eBook "Life Beyond the Lifestyle Block” today.