Record price for lifestyle blocks

Loan-to-value restrictions have the potential to affect the lifestyle property market but there is no sign of them doing so yet, the Real Estate Institute’s rural spokesman says.

Friday, January 24th 2014, 12:00AM

by Susan Edmunds

The lifestyle property market saw a 4.3% increase in sales volume in the three months to December 2013 compared to December 2012.

There were 32 more sales were recorded compared to the three months to November, an increase of just under 2%.

For the 12 months to December 2013 there were 6591 unconditional sales of lifestyle properties, an increase of 13.8% over the 2012 year.

Nine regions recorded increases in sales compared to December 2012 while five recorded decreases in sales. Northland recorded the largest increase, at 51, followed by Auckland, with 39 and Wellington with 23.

Compared to November 2013, nine regions recorded an increase in sales with four regions recording decreases.

The national median price for lifestyle blocks rose by $30,000 from $490,000 for the three months to December 2012 to $520,000 for the three months to December 2013 to reach a new record high.

Canterbury, Manawatu/Wanganui and Waikato all recorded new record highs for the three months to December.

The median price for lifestyle blocks in Auckland rose by 12.1% in the year to December 2013 to $817,500.

The number of days to sell for lifestyle properties improved by three days, from 62 for the three months to the end of November to 59 days for the three months to the end of December.

REINZ rural spokesman Brian Peacocke said: “A positive aspect of the lifestyle market is the steady increase in sales numbers over the past six months.”

He said LVR rules could have an impact if they slowed residential turnover significantly. “A lot of them flow out to lifestyle properties.”

But he said that had not been reported as a problem yet.

« Turnover dropped in December: REINZ

QV blames LVR rules for slowing growth »

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