The New Zealand lifestyle market continues to set new benchmarks as it hits $10.5b in annual sales through to June 2021, up from $5.7b the same time last year.
Is the residential market having an impact on the rural property market? It's a question we're often asked, and, for the most part, there is no evidence to show any effect. Up until this year, the rural market had been in decline since 2017. The lifestyle market, however, has benefited from residential sales as property owners trade up, taking advantage of windfall gains.
The knock-on effect for rural has been lifestyle gains being converted into more land, typically, small rural holdings that can support improved farming scale. Farms that are being amalgamated are generating value gains too, through subdividing the homestead or creating smaller parcels of grazing land to be sold off. For some, this will be a steppingstone property towards the goal of owning an economic farm. For many others, particularly rural professionals, these smaller farms represent the perfect size to now legitimately buy a pen of cattle at the local sale!
It's incredible that numerous lifestyle properties have valuations of $1m+ within 20km of the town boundary in many provincial locations around the country.
Historically, when buying a developed lifestyle block, you would get a lot more house for your dollars. These days, it's a very different story due to the significant value appreciation of the land.
The demand for a better quality of life for the family, and the desire to be more self-sufficient, do not appear to be diminishing anytime soon. For those lifestylers out there thinking of selling, don't be too quick to take the first offer in the current market. Our sales processes regularly deliver unforeseen premiums on behalf of our vendors. Requesting a professional market appraisal as you head into spring may be an excellent process to determine the next steps. Every location is unique, and our local knowledge in the regions is always a great assist and potentially the catalyst to set you up for the future.
Current valuations and sales activity are without precedent in the current lifestyle market. This is a good news story, and it's having a positive economic impact across provincial New Zealand and a knock-on effect in support of the rural market too.
Property Brokers expert lifestyle sales consultants have tips on buying a lifestyle block, farm or rural property, for more information click here.