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Lifestyle block market booms, price and demand increases

July 18,2016 11:17

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 property sold between April and June this year ...



JOHN NICHOLSON/FAIRFAX NZ

Demand for lifestyle blocks increase, with the average price now sitting at $580,000.

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 property sold between April and June this year, compared with 2079 during 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.READ MORE:* Lifestyle block sales at 12-year high at start of 2016* Sales of New Zealand lifestyle blocks tops $6 billion* Sunless Wellington houses selling well* Lifestyle block a popular property choiceThe latest QV figures show the average house price in Wellington region $516,430.The median price for a lifestyle block, which is usually between 1 and 4 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" - a strong market with strong prices.

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"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."The shortage of properties for sale is consistent across the country, and is likely a contributor to the easing of sales in some regions between May and June," he said."Of note are some particularly strong sales of land within the wider fringe of the Auckland urban area that would appear to be destined for residential subdivision in due course."Indications from around the country suggest the current robust market is likely to continue for some months yet."Twelve regions recorded an increase in sales.Waikato recorded the largest increase in sales - up 119 - in the three months to June 2016 compared to June 2015, while Wellington saw an increase of 67 sales and Otago an increase of 65 sales.Compared to May 2016, six regions recorded an increase in sales.Auckland and Otago regions reached new record high median prices for the three months to June 30, 2016.The median price for lifestyle blocks in Auckland rose by $317,000 - from $969,500 to $1,286,500 for the three months , reaching another record high.Meanwhile, the median price rose by 8.3 per cent in Canterbury to $650,000.In the Waikato, the median price increased by 5.7 per cent to $518,500.The median number of days to sell for lifestyle properties improved by just one day compared to the same period last year.Auckland recorded the shortest number of days to sell in June 2016, at 41 days, followed by Waikato at 47 days and Hawke's Bay at 54 days.West Coast recorded the longest number of days to sell at 139 days, followed by Manawatu/Wanganui at 86 days, and Otago at 85 days.

 - Stuff

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