The lifestyle block market has remained strong over winter, with sales volumes and prices both up strongly.
According to the latest rural sales figures from the Real Estate Institute of NZ, 2089 lifestyle blocks were sold in the three months to the end of July this year, which was up 6.9% compared to the same three month period of last year.
However, sales in the three months to July this year were down by 7.9% compared to the three months ended June, although that is more likely a reflection of seasonal trading than an overall market movement.
Over the 12 months to the end of July this year, 10,235 lifestyle blocks were sold which was up a whopping 49% compared to the previous 12 months.
Overall, lifestyle prices have risen by 25% over the last year, with the median selling price hitting $925,000 over the three months to the end of July, an increase of $185,000 compared to a year earlier.
The median price of bare land properties was $475,000 over the three months to the end of July this year, an increase of $118,478 (+33%) compared to 12 months earlier.
Those that had been developed as farmlets had a median price of $1.1 million over the three months to the end of July, up by $240,000 (+28%) compared to a year earlier.
REINZ rural spokesman Brian Peacocke said there was continuing strong demand for lifestyle properties and the increase in prices reflected a constrained supply.
The chart below shows the monthly trend in total lifestyle block sales since January 2003.
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Lifestyle blocks sold - REINZ
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14 Comments
If bought right, they'll be laughing to the banks when rezoning occurs.
Land banking indeed comes in various form.
life sentence blocks is the correct terminology.
Didn't the average ownership period used to be 6 months or something? People don't like spending their whole weekend mowing the lawns.
Yea if you have half a hectare its almost pointless except that it can be a stepping stone. Over a 5 year period we went from suburbia to 5000sqm to 3ha and now 73ha dairy farm run for us by a manager. All close to town and shops. Loving it. Not planning to grow further just improve what we have
Depends on the lifestyle block that has been purchased. A developed lifestyle block close to a town which has had all the expensive necessities done, ie fencing, water reticulation, concrete, sheds, established gardens and trees can be managed with little more time and effort, than a stand alone home, on a full site in an established suburb. Plus you have more freedom of movement and choices, to enable you to be less dependent. Not a bad thing in today’s climate.
The owner of the 7 acre block we bought was there since the 1960s... hard to leave once you settle in. Close to town and the view over rolling farmland is stunning
I've lived on a lifestyle block for 20 years, but you can't walk anywhere. Moved to town 5 years ago (to a quiet cul de sac) and walking to the beach, diary, pub is such a luxury. Living out of town you can only walk along the road and risk getting run over by an oversized SUV.
They both have their pros and cons.
Does anyone know what the definition of a lifestyle block is?
A portion of land that allows you to own livestock and make a total arse of yourself
Too big to mow, too small to plow....
Ok thanks for all the helpful comments guys... I was looking for a size definition, over x Ha but under y. Or includes onsite facilities but anything over so many Ha is considered a farm
My understanding is the designation - lifestyle block - is not related to a specific size but rather location, purpose and lack of financial return.
The block is outside an urban area but of insufficient size or quality of soil, contour or infrastructure to generate an economic return.
Half a hectare on the outskirts of Tauranga or 20ha of steep bush clad hillside outside Wanganui are both lifestyle blocks.
The REINZ includes grazing and finishing blocks in their farm sales statistics that are little more than lifestyle blocks blurring the definition of lifestyle block versus farm. Farm suggesting a property capable of generating a living for the owner.
In Auckland or Tauranga anything over 300m2
We have a couple of acres near the coast. Absolute godsend during lockdown as we feel safe and have plenty to keep us occupied. Can’t bear to think what it would be like on the 10th floor of apartment block.
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