Lifestyle property market booming

New rural data from REINZ shows that the lifestyle property market saw a 17.4% increase in sales volume in the three months to May 2015, as compared to May 2014.

There were 123 more sales over that period than in the three months to April 2015, with May 2015 recording the highest number of sales in a three-month period since May 2007.

For the 12 months to May 2015 there were 6,760 unconditional sales of lifestyle properties, which was an increase of 2.5% on the 12 months to May 2014.

On top of the increased sales volume, the national median price for lifestyle blocks rose by 6.2% - from $527,500 for the three months to May 2014 to $560,000 for the three months to May 2015.

This was a new record national median price for lifestyle blocks.

REINZ Rural Spokesman Brian Peacocke said the three months to May 2015 were notable for the strong uplift in sales volumes and an incremental increase in prices.

“From a national perspective, the overall level of activity signals a healthy climate in the lifestyle sector.”

Peacocke said that, in the North Island, Northland, Auckland, Waikato, Taranaki, Manawatu/Wanganui and Hawkes Bay all recorded solid increases.

Nelson/Marlborough and Southland were the standout areas in the South Island.

Perhaps not surprisingly, the Auckland region led the way in both sales volume and median price increases.

Auckland recorded an increase of 143 sales in the in the three months to May 2015, as compared to May 2014.

At the same time, the median price for lifestyle blocks in Auckland rose by 9.1% to $985,000 for the three months to May 2015, as compared to $902,500 for the three months to May 2014.

Lifestyle properties nationwide were also selling quicker than in the same period last year.

Peacocke said that, overall, the data showed activity across most rural property categories remained surprisingly strong.

The main limitation was the shortage of available properties.

But Peacocke said that, given the time of the year, such a shortage was to be expected and was likely to remain in place until spring.