Bucolic appeal
Demand for lifestyle blocks is rising as prices more or less equal the cost of a city townhouse.
The average price of a lifestyle block is almost equivalent to the average price of a house in Wellington. And, as a result, demand for lifestyle blocks continues to increase.
There were 2480 lifestyle properties sold nationwide between April and June this year, compared with 2079 in the same period in 2014 – an increase of 401 sales.
New data from Real Estate Institute of New Zealand (REINZ) shows the median price for all lifestyle properties sold increased $30,000, to $580,000.
The latest QV figures show the average house price in the Wellington region is $516,430.
The median price for a lifestyle block, which is usually between one and four hectares, hit a record high – the third consecutive record median price this year.
For the year ending June 30, 8967 lifestyle properties were sold – 27 per cent more than in the year ending June 30, 2015, and the highest number of annual sales since March 2004. The value of lifestyle properties sold reached new heights – $6.67 billion for the year ending June 30, 2016.
REINZ rural spokesman Brian Peacocke said the data painted a ‘‘clear and unequivocal picture’’ of a strong market with strong prices.
‘‘The lifestyle market is very similar to the residential market with strong demand across the country, with the greatest limitation being the availability of properties for sale,’’ he said.
Twelve regions recorded a rise in sales. Waikato recorded the largest increase – up 119 – in the three months to June 2016 compared with June 2015, while Wellington saw an increase of 67 sales and Otago an increase of 65 sales.
Auckland and Otago reached new record high median prices for the three months to June 30, 2016.
The median price for lifestyle blocks in Auckland rose from $969,500 to $1,286,500 for the three months, another record high.
Meanwhile, the median price rose by 8.3 per cent in Canterbury to $650,000.
The median number of days to sell improved by just one day compared with the same period last year.