Lifestyle block prices 'solid'

Auckland purchasers are looking to Hamilton for lifestyle blocks, new Real Estate Institute data shows.

Thursday, June 19th 2014, 12:00AM

by The Landlord

The lifestyle property market reported a 4.7% fall in sales in the three months to May compared to the same time last year. There were 1757 over the period, compared to 1844 in the three months to May 2013. Fifty more sales were recorded compared to the three months to April.

For the 12 months to May 2014 there were 6594 unconditional sales of lifestyle properties, an increase of 7.2% (+444 sales) over the 12 months to May 2013.

Six regions recorded increases in sales compared to May 2013 while six recorded decreases in sales.

Otago recorded the largest increase (+35 sales), followed by Northland (+14 sales) and Taranaki (+13 sales). West Coast and Southland were unchanged. Compared to April, nine regions recorded an increase in sales with five regions recording decreases.

The national median price for lifestyle blocks rose by $18,000 (+3.5%) from $509,500 for the three months to May 2013 to $527,500 for the three months to May 2014.

The median price for lifestyle blocks in Auckland rose by $100,000 (+12.5%) from $802,500 for the three months to May 2013 to $902,500 for the three months to May 2014 to reach a new record high.

Over the same time period for the three months ending May, the median price rose by 6.5% in Waikato to $495,000, and by 0.1% in Canterbury to $545,000. Compared to April 2014, the National median sales price rose $17,500 (+3.4%) to $527,500.

The number of days to sell for lifestyle properties improved by four days, from 75 days for the three months to the end of April to 71 days for the three months to the end of May.

Compared to the three months ended May 2013 the number of days to sell eased by four days from 67 days to 71 days. Gisborne recorded the shortest number of days to sell in April at 47 days, followed by Taranaki at 50 days and Canterbury at 52 days. West Coast recorded the longest number of days to sell at 164 days, followed by Hawkes Bay at 113 days and Northland at 98 days.

Real Estate Institute rural spokesman Brian Peacocke said: “Whilst volumes of sales have eased from the equivalent period last year, prices have remained at solid levels over recent months and across the country, the market is generally described as being steady.”

The REINZ said demand for quality blocks with good homes on one or two hectares was outstripping supply, and there was growing demand for bare land up to four hectares.

There was good demand and sales activity in central Waikato for properties in the $1.3m plus range where Auckland purchasers have been particularly active. There were 221 Waikato lifestyle block sales in the three months to May, the third-highest after Auckland and Canterbury.

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