Real estate climate changing
Helen Mays takes a look at the latest rural sales figures.
According to latest statistics, lifestyle sales were down this last quarter. Were there fewer buyers or fewer lifestyle properties available to buy? Data released by the Real Estate Institute of NZ (REINZ) show in February 2018 there were 192 less sales of lifestyle properties than the previous three months ending January 2018.
Overall, the sales numbers for lifestyle properties were down 15 per cent on the same time the previous year, yet real estate agencies continue to report keen interest in Manawatu¯ for well-presented lifestyle properties.
The median price for all lifestyle properties sold in the three months to February 2018 was $650,000, that’s $50,000 higher compared to the three months ended February 2017.
REINZ rural spokesman Brian Peacocke says he has spotted change happening. ‘‘All North Island regions experienced a reduction in volumes compared to the equivalent threemonth period 12 months ago, whereas all South Island regions held ground or achieved gains, albeit relatively small.’’
Most of the regions saw the median price of lifestyle blocks increase between the three months ending February 2017 and the three months ending February 2018. The most notable examples were in West Coast, up 163 per cent, Wellington up 48 per cent and Bay of Plenty up 21 per cent. The notable exception was Gisborne whose median price fell 41 per cent over the year.
‘‘We need to take into account huge weather events and road outages when assessing these statistics.’’
Auckland saw a slump in lifestyle property sales with the lowest monthly level experienced for three years, but there was steady recovery in Northland from the previous two months. The latest huge road outage in Pukenui in Northland could impact on the next sales statistics.
There was a steady level of lifestyle sales in Waikato, reversing the lower levels of last month, but a gentle easing in sales in Bay of Plenty.
Gisborne, Hawke’s Bay, Taranaki, Manawatu and Whanganui saw sales volumes improving but were still less than the previous three months.
The Wellington-wairarapa region saw a lift in lifestyle volumes in February while Nelson and Marlborough remained steady. Their sales were still a healthy increase from the same period in 2017. In Canterbury and the West Coast there was a good recovery from slower previous results, while in Otago a strong market was presenting around Dunedin and North Otago. The sales results were mixed in Central Otago but their sales volumes have remained stable over the last three years. In Southland too, lifestyle property sales remained consistent, mirroring the success of residential sales. Nelson recorded the most substantial increase in lifestyle sales in the three months to February 2018 compared to February 2017.
Figures show there were 52 fewer farm sales in New Zealand for the three months ended February 2018 than for the three months ended February 2017.
‘‘Of note is the 9.9 per cent reduction in the Dairy Farm Price Index over the last 12 months, a likely consequence of the relatively cautious tone in the marketplace where vigorous due diligence is the norm,’’ says Peacocke. This is being put to the test by the spread of mycoplasma bovis, a notifiable disease causing major impact to the dairy industry, predominantly in the South Island.
‘‘Partly as a result of this disease, there is a noticeable increase in dairy farmers seeking to buy dairy support properties, the logic being the ability to contain replacement heifers in a controlled environment rather than exposing such cattle to the risk of cross-infection. This can occur on specialist grazing farms which cater for multi-sourced grazing animals.’’
The pending culling of all cattle across 28 Canterbury/southland farms has proved his point.