Lifestyle property sales recover

New Zealand's lifestyle property market has seen a "dramatic recovery" in activity, the Real Estate Institute of New Zealand says in a new report.

Figures released by REINZ show a solid upturn in lifestyle property sales, particularly in the northern regions.

According to REINZ, sales rose 11.9 per cent in the three months ending in March 2018 compared to the three months ending in February 2018.

The median price for lifestyle properties sold in the first three months of the year was $647,500, up 3.6 per cent compared to the same period last year.

Brian Peacocke, rural spokesman for REINZ says: "Following a considerable easing in sales ... the three-month period ending March 2018 recorded a solid upturn which reflected a dramatic recovery in activity, particularly in the northern region."

According to REINZ, there was a dramatic bounce back in sales volumes in Auckland (up 146 per cent), Waikato (100 per cent), and the Bay of Plenty (73 per cent).

There were also "reasonable increases in volumes throughout Hawke’s Bay, Taranaki, Manawatu and Wellington, where listings are reported as being short and properties are selling quickly".

Activity in the South Island was steady, REINZ says in its report, but there was an easing on the West Coast.

However, REINZ noted that lifestyle property sales were down on last year.

"Overall, there were 1,716 lifestyle property sales in the three months ended March 2018, compared to 2,011 lifestyle property sales for the three months ended March 2017," the report states.

"7,344 lifestyle properties were sold in the year to March 2018, 1,558 (-17.5 per cent) fewer than were sold in the year to March 2017."

REINZ added: "Most of the regions saw the median price of lifestyle blocks increase between the three months ending March 2017 and the three months ending March 2018. The most notable examples were in West Coast (+170 per cent), Wellington (+40%) and Waikato (+10 per cent) and the most notable exception was Gisborne whose median price fell 37 per cent over the year."

The median number of days to sell for lifestyle properties was up three days, to 65 days, on the first three mnonths of last year. "Compared to the three months ended February 2018 the median number of days to sell eased five days," REINZ said.

"Waikato recorded the shortest number of days to sell in March 2018 at 51 days, followed by Nelson (52 days), Bay of Plenty (55 days), Wellington (56 days) and Manawatu/Wanganui (60 days). West Coast recorded the longest number of days to sell at 241 days, followed by Gisborne at 102 days and Otago at 90 days."