Covid-19 drives sales of lifestyle blocks to record high

Sales of lifestyle blocks reached an all-time high in July, sales data from the Real Estate Institute of New Zealand (REINZ) show.

Chief executive Bindi Norwell said: “For a while now we’ve been hearing stories of people purchasing lifestyle properties as a result of Covid-19 and now we’ve seen this translate in the data.

“Over the last few months sales of lifestyle properties have been increasing, and last month saw the highest number of lifestyle properties sold in a July month ever.”

The trend had been seen across the country, with 849 lifestyle properties sold compared to 594 in July last year, a 42.9 per cent increase.

In June, 643 lifestyle properties were sold.

The trend had been seen across the country, with 849 lifestyle properties sold compared to 594 in July last year, a 42.9 per cent increase.

Agents had started hearing from people during lockdown who wanted more space and lifestyle options because people were spending more time at home, she said.

“Every region that saw an annual increase in sales volumes of lifestyle properties during July saw double digit increases, which is an incredible result,” Norwell said.

A significant increase in the median price per hectare of lifestyle properties was also recorded in July.

Across the country, the median price of lifestyle blocks increased by 4.1 per cent to $750,000 compared to $720,577 in July last year, and up marginally from June’s median price of $745,000.

This the highest median price in a July month since records for lifestyle data began, the data showed.

Regions that experienced the biggest price increases were Bay of Plenty, up 44 per cent from last year to $940,000, Canterbury, up 27 per cent to $726,250 and Gisborne, up 30 per cent to $530,000.

Bay of Plenty, Canterbury, Northland and Southland all had their highest median price for a July month.

Norwell said the price increases were not surprising given the demand.

“Now that the country has gone back into ‘lockdown 2.0’ it will be interesting to see if there is even greater demand going forward and whether prices continue to rise as we head towards the warmer months of the year; especially as there is an increased interest from offshore buyers looking towards opportunities in New Zealand,” she said.

Source: STUFF