Lifestyle outperforms residential
New Zealand's lifestyle property market is becoming more closely linked to residential real estate moving away from the traditional association with rural land according to Bayleys.
Thursday, April 1st 2010, 5:52PM
by The Landlord
Senior research analyst Ian Little from Bayleys Real Estate says that over the past three years, lifestyle property sales volumes and values have mirrored the residential property sector going through a wave of falling, then rising.
"The strong performance of lifestyle property reflects its unique appeal which is the opportunity to live within a rural setting which provides space along with a feeling of tranquillity.
"Lifestyle property is also regarded as an excellent environment to bring families up in. This will ensure continuing demand for this type of property."
Little believes locations close to major urban centres are likely to continue to attract the highest levels of market activity as purchasers look to benefit from a country lifestyle while commuting to town for work.
He says that sales volumes and values trended down from the latter half of 2007 and through 2008, but in 2009 however, witnessed a recovery both in terms of sales activity and values.
He says it is likely values will continue to fluctuate on a quarterly basis over the next year as the economy fully emerges from recession before gathering renewed momentum in the medium term.
Anyone buying into the lifestyle property market at the beginning of the ‘noughties' would have done well out of their investment according to Little.
He says the lifestyle property market outperformed the residential market over the ‘noughties' with Real Estate Institute of New Zealand sales statistics showing the average national sale price for residential property increased by 108%.
By comparison, the average national sale price for lifestyle property was 138% higher than at the start of the decade.
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