Continuing growth in lifestyle market - REINZ

Data released today by the Real Estate Institute of NZ ("REINZ") shows there were 508 more lifestyle property sales (+28.7%) for the three months ended December 2015 than for the three months ended December 2014. Overall, there were 2,277 lifestyle property sales in the three months ended December 2015, compared to 2,200 lifestyle property sales for the three months ended November 2015 (+3.5%), and 1,769 lifestyle property sales for the three months ended December 2014. 8,142 lifestyle properties were sold in the year to December 2015, 26.8% more than were sold in the year to December 2014, the highest number of annual sales since December 2004. The value of lifestyle properties sold reached a new record of $6.026 billion for the year to December 2015. The median price for all lifestyle properties sold in the three months to December 2015 rose by $25,000 to $550,000 compared to $525,000 recorded for three months ended December 2014 (+4.8%). The median price rose 0.9% compared to November. "Sales volumes and prices for the three months ending December 2015 reflect consistent strength across the major regions of the country, and whilst December sales (752) eased slightly from the previous month, they were still well ahead of December 2014 (613) and December 2013 (532)", says REINZ Rural Spokesman Brian Peacocke. Highlights include: - Strong demand for coastal properties in Northland; - Particularly strong activity in the western areas of Auckland including Kumeu, Helensville, and to the north at Albany; - Consistent level of demand and sales in the Waikato with demand greater than supply in the Cambridge to Hamilton districts; - Strong demand in the Bay of Plenty, particularly west of Tauranga where values are improving; positive and increasing benefit from the new Mount Maunganui / Te Puke expressway with resulting demand pushing east of Te Puke towards Whakatane; - A healthy market in north Taranaki for those districts in close proximity to New Plymouth with strong sales up to $1m and the market peaking at $1.2m / $1.4m; the consistency of the regional economy is creating an improving market in the province; - A good steady market in Hawkes Bay and Manawatu where sales ease above $800,000, Wellington buyers are underpinning the Wairarapa market where resistance develops at prices exceeding $600,000; - A buoyant market in the Marlborough / Nelson region where the mood remains positive in spite of extremely dry conditions during the spring; - A steady market with static prices in Canterbury, albeit with a substantial drop in December volumes from the peak in November; - A good solid market in Otago with particularly strong demand and sales activity in the Queenstown / Lakes district, a popular destination / retirement region; and - A steady albeit slower market in Southland, which has experienced the most difficult winter and spring weather conditions for some years. 11 regions recorded an increase in sales compared to December 2014. Waikato recorded the largest increase in sales (+122) in the three months to December 2015 compared to December 2014, Northland saw an increase of 108 sales and Bay of Plenty an increase of 94 sales. Compared to November 2015, 10 regions recorded an increase in sales with two regions recording a decrease. The national median price for lifestyle blocks rose by $25,000 (+4.8%) from $525,000 for the three months to December 2014 to $550,000 for the three months to December 2015. The median price for lifestyle blocks in Auckland rose by $92,000 (+9.6%) from $958,000 for the three months to December 2014 to $1,050,000 for the three months to December 2015 to reach a new record high. Over the same time period, the median price rose by 6.0% in Waikato to $520,000, and rose by 9.5% in Canterbury to $635,000. Compared to November 2015 the national median sales price rose by $5,000 (+0.9%). The median number of days to sell for lifestyle properties improved by four days, from 57 days for the three months to the end of November to 53 days for the three months to the end of December. Compared to the three months ended December 2014 the median number of days to sell improved by seven days. Gisborne recorded the shortest number of days to sell in December 2015 at 26 days, followed by Auckland at 41 days and Waikato at 42 days. West Coast recorded the longest number of days to sell at 116 days, followed by Otago at 98 days, and Wellington at 96 days.