Fuseworks Media

Steady as she goes – REINZ

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 72 more lifestyle property sales (6.0%) for the three months ended November 2023 than for the three months ended October 2023. Overall, there were 1,266 lifestyle property sales in the three months ended November 2023, compared to 1,330 lifestyle property sales for the three months ended November 2022 (-4.8%), and 1,194 lifestyle property sales for the three months ended October 2023.

In the year to November 2023, 5,499 lifestyle properties were sold, 1,743 (-24.1%) less than were sold in the year to November 2022. The value of lifestyle properties sold was $6.15 billion for the year to November 2023.

The median price for all lifestyle properties sold in the three months to November 2023 was $980,000 and was $55,000 less compared to the three months ended November 2022 (-5.3%). The median price for bare land lifestyle properties sold in the three months to November 2023 was $432,500 and was $37,500 less compared to the three months ended November 2022 (-8.0%). The median price for Farmlet lifestyle properties sold in the three months to November 2023 was $1,100,000 and was $100,000 less compared to the three months ended November 2022 (-8.3%).

Shane O’Brien, Rural Spokesman at REINZ, says: “The month of November saw mixed results across New Zealand, as some areas traded similarly to the same period in 2022 and several areas showed an increase in sales activity as the year closes out. The Nelson district showed a noticeable increase in sales activity up nearly 50% on last year and a small increase in the median sale price.”

In terms of sale volume, we saw the traditionally strong areas of Canterbury and Otago trade similarly to last year with similar volumes and small increases in the median sale prices paid.

These results are not unexpected as the lifestyle market is linked to the residential market as buyers and sellers often move between these markets.

While nationally the total volume of sales is well on the way back to the heady days of 2021, it is encouraging to see some of the provincial areas see an increase in sales activity levels as buyers readjust to the higher interest rates and economic conditions post-election.

Four regions recorded an increase in sales compared to November 2022, with Nelson/Marlborough (+20 sales) and Waikato and Manawatu-Wanganui (+5 sales) observing the biggest increases. Auckland ( -29 sales) and Northland ( -22 sales) recorded the biggest decreases in sales in the three months to November 2023 compared to the three months to November 2022. Compared to the three months to October 2023, 11 regions recorded an increase in sales.

Also, two regions saw the median price of lifestyle blocks increase between the three months ending November 2022 and the three months ending November 2023. The most notable examples were in Canterbury (+4.1%) and Southland (+3.8%) with the biggest decreases being in Otago ( -24.1%) and Taranaki ( -20.9%).

The median number of days to sell for lifestyle properties was 15 days more in the three months to November 2023 than in the three months to November 2022, sitting at 69 days.

West Coast (43 days) recorded the shortest number of days to sell in November 2023. Taranaki (112 days) recorded the longest number of days to sell.

 

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