Regional Review Spring 2009
“A net migration gain of 25,000 is predicted by the end of the year with a number of immigrants, attracted by our clean, green image, opting for lifestyle properties.”
| Auckland is the region with the highest value lifestyle property according to REINZ sales statistics, again mirroring the residential market. In the June 2009 quarter, the median value of lifestyle properties sold in the region stood at $690,000. The Nelson market produced the second highest median at $540,000 whilst the most affordable property was found in the South Island’s more rugged West Coast region where the median was $150,000. It was, however, Canterbury which produced the most sales for the quarter. As has traditionally been the case, the highest sales figures tend to be in areas close to major population centres where buyers can enjoy the “best of both worlds” – living in a rural setting while being close to the amenities and employment opportunities offered by major metropolitan centres. |
 Source: REINZ, Bayleys Research |
The lifestyle market comprises both bare land (vacant sites) and improved sites – ie, those with houses on them. Statistics released by Quotable Value Limited (QV) show that vacant sites account for only approximately 33% of total sales nationally, reflecting the preference for developed property. The latest QV statistics show that the average vacant sale price per hectare is $71,361 compared with $184,253 for an improved site, although again there is considerable regional variation. | |
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Outlook
While the economic recovery is likely to be weak and patchy over the next few months, there is no doubt that sentiment around the economy in general, and the real estate market in particular, is improving. A number of recent business confidence surveys have shown sharply increased levels of confidence. The New Zealand Institute of Economic Research survey released in September, for example, showed confidence in respondents’ own business prospects to be the best for nearly five years.
Forecasts are for the immigration figure to continue to grow over the next few months, with a net gain of 25,000 probable by the end of the calendar year. This will be of benefit to the lifestyle property market with a number of immigrants, particularly those from the UK, who are attracted to New Zealand by its “clean, green” image, opting for lifestyle properties.
Should confidence in the economy translate to a real recovery, it is likely that activity levels in the lifestyle property market will continue to rise, particularly over the traditionally busy spring and summer period.
