Lifestyle market shortage looming

A shortage is looming in lifestyle properties, particularly around the main centres, the Real Estate Institute says.

Monday, October 21st 2013, 12:00AM

by The Landlord

There was a 23% increase in sales volume in the three months to September 2013 compared to the same time the year before.

There were 1647 sales recorded in the three months to September 2013 compared to 1339 sales in the three months to September 2012.

But 31 fewer sales were recorded compared to the three months to August 2013. For the 12 months to September 2013 there were 6522 unconditional sales of lifestyle properties, an increase of 20.7% over the 12 months to September 2012.

Auckland recorded the largest increase in turnover compared to September last year, an extra 73 sales. It was followed by Canterbury (+62 sales) and Northland (+49 sales). Compared to August 2013, three regions recorded an increase in sales with nine regions recording decreases.

The national median price for lifestyle blocks rose by $30,000 from $450,000 for the three months to September 2012 to $480,000 for the three months to September 2013. The median price for lifestyle blocks in Auckland rose by 26.3% in the year to September 2013 to reach a new record high. The median price rose by 6.7% in Waikato, and by 1.1% in Canterbury.

The number of days to sell for lifestyle properties eased by one day, from 77 days for the three months to the end of August to 78 days for the three months to the end of September.

Compared to the three months ended September 2012 the number of days to sell improved by three days from 81 days to 78 days.

Gisborne recorded the shortest number of days to sell in September at 38 days, followed by Southland at 45 days and Taranaki at 48 days. Nelson and West Coast recorded the longest number of days to sell at 163 days, followed by Northland at 118 days and Hawkes Bay at 116 days.

REINZ rural spokesman Brian Peacocke said: “While the volume of lifestyle property sales has eased slightly in the September quarter activity around the country continues at a level well ahead of that 12 months ago. Strong buyer interest remains within close proximity to the major cities with a shortage of listings starting to emerge.”

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