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Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 60 fewer lifestyle property sales (-4.7%) for the three months ended September 2023 than for the three months ended August 2023. Overall, there were 1,225 lifestyle property sales in the three months ended September 2023, compared to 1,402 lifestyle property sales for the three months ended September 2022 (-12.6%), and 1,285 lifestyle property sales for the three months ended August 2023.
In the year to September 2023, 5,440 lifestyle properties were sold, 2,099 (-27.8%) fewer than were sold in the year to September 2022. The value of lifestyle properties sold was $6.14 billion for the year to September 2023.
The median price for all lifestyle properties sold in the three months to September 2023 was $907,500 and was $114,000 less compared to the three months ended September 2022 (-11.2%). The median price for Bareland Lifestyle properties sold in the three months to September 2023 was $450,000 and was $20,000 less compared to the three months ended September 2022 (-4.3%). The median price for Farmlet Lifestyle properties sold in the three months to September 2023 was $1,020,000 and was $170,000 less compared to the three months ended September 2022 (-14.3%).
Shane O’Brien, Rural Spokesman, at REINZ says: “The lower volume of sales was in line with market expectations as buyers look to adjust to the higher interest rates, slowing of the residential market in some centres, and many awaiting the outcome of the general election in October. With the better weather, many agents across the country are reporting higher levels of inquiry and open home attendees, which augers well for the Spring market as we head into Christmas.”
“The small reduction in the median value of Bareland sales will in some part be accounted for by buyers considering higher building costs that are being reported across much of the country when buying these properties.”
“A recent government directive around the subdivision of productive rural land is starting to constrain the supply of Bareland lifestyle blocks in some areas as councils look to accommodate this directive.”
“A particularly wet winter across much of New Zealand has seen many sellers hold off releasing their properties to the market but it is apparent there is an increase in the number of lifestyle properties coming to the market. It would appear sale numbers should increase over the next three months as we head towards the year’s end.”
Compared to September 2022, four regions recorded an increase in sales, with Taranaki (+17 sales) and Nelson/Marlborough (+12 sales) observing the biggest increases. Northland (-67 sales) and Wellington (-47 sales) recorded the largest decreases in sales in the three months to September 2023 compared to the three months to September 2022. Compared to the three months to August 2023, 5 regions recorded an increase in sales.
One region saw the median price of lifestyle blocks increase between the three months ending September 2022 and the three months ending September 2023 (Southland (+19.2%)). The biggest decreases were in Otago (-23.3%) and Manawatu-Wanganui (-19.7%).
The median number of days to sell for lifestyle properties was 20 days more in the three months to September 2023 than in the three months to September 2022, sitting at 78 days. Southland and West Coast (61 days) recorded the shortest number of days to sell in September 2023. Nelson/Marlborough/Tasman (123 days) recorded the longest number of days to sell.