The bottom appears to have dropped out of the lifestyle block market over summer, with sales over the three months to January down 45% compared to the same period a year earlier.
The latest sales figures from the Real Estate Institute of NZ show that 1102 lifestyle blocks were sold over the three months from November 2022 to January 2023, down from 1991 over the same period a year earlier.
The downturn in sales affected the entire country, with all regions reporting lower sales over the three months to January this year compared to a year earlier, with the biggest decreases occurring in Auckland and Waikato.
In the 12 months to the end of January this year, 6226 lifestyle properties were sold, down 31.9% on the previous 12 months.
Prices were also lower with the median selling price for bare land lifestyle blocks sold over the three months to end of January down 7.2% on a year earlier, while the median price for farmlet lifestyle properties was down 9.6% over the same period.
Lifestyle properties are also taking longer to sell, with the median number of days it took to sell a lifestyle property stretching out to 51 over the three months to January 2023, up by 13 days compared to a year earlier.
REINZ rural spokesman Shane O'Brien said the latest results were a continuation of the downward trend in activity that was evident late last year.
"Salespeople are reporting good buyer enquiry at open homes and inspections, however buyers are being particular in their decision making with a backdrop of higher interest rates and tightening economic conditions," he said.
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93 Comments
Prices down 7 to 9 percent. Over 6000 properties sold. Salespeople are reporting good buyer enquiry at open homes and inspections
Headline: "Oh this is bad, very very bad. The patient has died"
Those that seek to trivialize this downturn are living in a hole.
In chimes my old sparring partner.
Get staffed retired poppy
- Denial
- Anger
- Bargaining
- Depression
- Acceptance
I put HW2 at about 1.5
Focus on yourself kiwimm. On that, how do you rate
You seem slightly angrier so upping your rating to 1.7
I am a solid 5 - the crash is happening and I'm ok with that. It helps that I spent the years of low interest rates aggressively paying off my mortgage so I am now debt free.
You seem slightly angrier so upping your rating to 1.7
To me, that describes yourself. Completely puerile conversation of course and Retired poppy got a spanking the last time he behaved this way
Leave it there thanks.
Y'all might want to check the upvotes to see who got the spanking
Salespeople are reporting good buyer enquiry
This is always reported, even when it wildly contradicts the actual data.
The very definition of spruiking.
Bottom dropped out of the market?
Agreed HW2. Property sales trend comment without linked offer data makes for a questionable headline. Sure there is a downturn across all property. However if you enjoy your lifestyle on your acres why would you look to sell? One thing is sure if you have your own eggs, meat and veg and maybe even dairy over the coming years it will be an increasingly important contributor to your own and your family's physical and mental health and food expenses.
Except most lifestylers just treat rural residential lots as larger versions of a suburban section. No chickens, meat or dairy cows to be seen. Just lawns accompanied by an expensive ride on mower, a few fruit trees and a vege patch that is a similar size to one in town. Lifestyle blocks are incredibly inefficient and costly to maintain. On the wellbeing front, they tend to be life-sentence blocks. Lawns, lawns, lawns...
Nailed it Mikey. I'm on the lookout but most properties are a disgrace.
Family member flew into Waikato recently - could not believe the urban sprawl of massive homes, tennis courts, swimming pools and barren ha on said properties. A disgraceful waste of a resource (properties owned by Ham elite who expect the plebs to live in in-fill 'units' and have no real interest in being engaged with the land - they are usually at their baches in the weekend... in their subsidised Tesla)
The lack of orchards, gardens and self sufficiency is the standard in the Waikato rural blocks.
Rastus in parts of the Waikato the district plan actually encourages this urban sprawl - sections must be 5000 m2 minimum to maintain asthetics (even though Regional council says 2500 is Ok. - which is still way to big
House must be of a certain std as must outbuildings and fences -all specified in the plan. and houses have to be in generally the middle of the section so future subdivision will be a nightmare
and livestock is not welcome with lots of rules fundamentally designed to discourage
all on class one soils - its another provincial cluster f.
as for flying into their international white elephant airport - just another small town politicans overpriced dream
The definition of stupid. I am honestly shocked!
as they say lifestyle blocks = no style, no life. Sorry a little bit unfair I am sure but can imagine some people go into these things without the money or skills and energy to make it work.
I am average in ability yet have not found this myth of no life or style. Actually think it’s an old wives tail. We have 50 horse in a breeding program plus 300 ewes, small group of cattle and a breed we sell internationally. For 20 years we have been a profitable and always at least paid the mortgage. Yes some days It is hard when drenching and working with the sheep…and the occasional day in winter with deaths and losses. However it’s purely part time with good systems and we both work senior level professional roles. What is the fuss…or is it envy.
‘Most Lifestylers”
I value my way of life on my few acres. I recognise it as a privilege.
Maybe the above comments just go to show that “most lifestylers” is another one of those lazy labels that ignores human diversity. As for efficiency - is that judgement not in the eye of the home owner rather than anyone else?
Yes but volume of sales drop a leading indicator for a property market. Price drop will follow soon.
How are you doing with your dream property search NB. Anything you like the look of, though I suspect the prices aren't to your liking.
They sound bite is always life style blocks are in free fall. Have a couple of finishing blocks…desk valuation still continue to hold up and get unsolicited calls on them on a regular basis if I want to sell. Rest of the portfolio is down…
There's a wide variety out there, some LSB properties are on the border of very sizeable cities so it is the best of both worlds. In those cases and in time the city comes to you, offering city values for land you purchased at rural value
The problem is now the LSB bag holders are asking higher than the city values. Just check the asking prices of Wairarapa compared to Hutt Valley.
Let em burn.
-SMG.
So owning a petting zoo isn't that cheap?
I discourage patting the cows until after they go flatting in the freezer.
If you get too friendly with them, the cows realise you're not that scary after all
i can hand feed them.... you can get sick of steak, burgers , mince etc.... Daughter making a topside casserole tonight, red wine etc etc
mashed potatoes yummy... our last home kill weighed 305kg going into butchers..... we have a lot of meat to get through.
Mmmm.. i miss our lambs sometimes.. they were delicious.
The wife can't cook properly, meat ends up like rubber
Try calling her something other than "the wife". Worked for me.
lol!
buy her a slow cook bbq
👍
You don't know how to cook a steak properly?
I'd be happy with baked beans, she likes to look after me
Air fryer. Best invention ever.
👍
Good recommendation
Would you 'steak' your life on that
Surely without Covid driving the desire to isolate from others, there was always going to be a drop off. Lifestyle blocks are a shed load of work. If you have a few animals it is all the work required for a farm, but no scale or economies.
Add in the removal of the stupidity of cheap debt and kapow....lower sales and price.
The drawcard for many around my way are horses, we have 6 on the property and about to buy two mares that are in foal.
I have nearly 40 sheep, Wilshire so no shearing, and currently 3 big fat cattle. It is a lot of work its not for the old or lazy, but its fun.
And you can walk around with a shotgun or 22 and people dont panic.
Wouldn't you have more fun spending 12 bucks per beer on a night on the town?
Then you could also sleep in the next day and nurse your sore head.
I dont drink cheap beer..... Vultures etc all about $15 a pint now.
Bonus. That'll be $200 for a night out thanks.
Weeeee
Brew your own craft beer for $1.50 - $3.50 per crate bottle, only paying GST on materials and the cost of my time and a bit of electricity. Sorry Mr Tax man, back you go.
Yes I am a BJCP beer judge, I am a handy brewer, and have a pretty cool kegging system.
I tend to brew UK bitters , US pale ales. I would rather buy the hazy beers as i dont like chewing through 20L of the same beer.....
I tend to love the timothy taylor landlord style stuff at 4% rather then the 6-7%
Great work! Looking forward to building a keg system this year myself. I brew things that interest and test me. Looking forward to brewing an oktoberfest this year, spices porter, fresh hop pale ale shortly woth the hops from the garden and a few friends’
Huge learning curve for the uninitiated.
Kids love it though and it opens a new world for them
A friend was telling me how their neighbour got a (new) 20 year old tractor but his kid stayed up late to watch it come in.
I was born on 700 acre sheep and beef in Hawkes Bay, so this all easy, just got a rechargeable batten stapler to repair some flood hits to fencing. I can do fencing , post and rail, water for stock etc as used to do all that with farthers instruction.
its not feasable if you are not hands on unless you are happy to bleed cash. I have a good quad bike with a decent winch on the fron, ride on mower etc etc, but really need a small tractor, next year.... will def pick up like a 1.7 ton digger if i see stress over the next year.
Biggest issue I've found once I got my tractor was finding room for all the PTO implements I couldn't stop buying, and the digger has taken up the last remaining spot in the garage. One can never have too much storage space.
Going rural has been the most fulfilling choice we've ever made, we never want to go back.
👍✌
Tractors are fun and a decent powered one so versatile.
I have a 2 tonne digger already. Has been useful.
Whats the winch on quad used for
Carcasses.
get a proper digger - 8 - 10 tonne.. 1.7 will just pee you off when it doesnt quite do what you want
"kids love them" - Bold claim. Lots of kids like other kids, not being marooned on their own with their parents in a big park. For many kids they are nice to visit but not so much to live.
"Opens up a new world for them" - it also closes down one for them too
My kids loved the not being in town and free to be loud as. Good parties too, heaps parking and we knew where they were, except Jeff who decided to walk home 14km at 4am. Build a lawn tennis court just cause I wanted too, great play area.
how hard is it to build a grass tennis court?
I'll take that as a serious question.
I did it mostly by hand, no money and a cheap bastard in general. So quite hard, initial bit using a old tractor and blade then string lines and garden hose with water in to level. Gridded up then just spade work and raking topsoil back on. The idea was to have a good play area plus tennis but can always go back into the paddock. A flock of sheep was excellent for compacting it too.
New owners did put it back in the paddock but improved the grass arena we had put in.
I must admit that was amazing work. Any thoughts on doing a tennis court on consolidated peat ground, whether its any different. Cheers
Yep, my kids' teenage mates prefer coming to our place rather than hanging out in town.
I'd probably enjoy it more too but not my kids. They like visiting our friends place out in the wop wops but that's a once every couple of months experience. Day to day they like being in town. We are lucky that 'town' is also on the beach.
Day to day the kids just caught the bus to school in town and hung out with their mates.
I'm lucky in that it takes me less time to drive to civilisation than it takes to drive along Fanshaw St at 8 in the morning.
Rural friends of ours get driven nuts - as the neighbours down the road seem to think it great for kids to be motocross riders from the youngest possible age and need endless practice. Such moronic parenting in this age.
.
If you are remotely successful you just have a town house as well…
It’s really the finance issue…I know heaps that would like to buy if they could. Ps and time waits for no one. One of the biggest issues is actually find a quality block that will work for you, can systematise economically and work part time.
Is there any kind of breakdown with regard to per-hectare prices? Lifestyle block seems to be a very broad category, but then I suppose every month is being judged by the same vague definition.
Not really it all depends on the quaility of the house, perhaps added value if there is a 2nd dwelling that can be rented, sheds horse stable and arenas add value, are paddocks flat or hilly well drained etc etc etc, and also massive difference access to decent high schools etc.
I have seen a few sell around me, but many more sit with PBN. Many leave the city to buy LSB around AKL so no surprise its slow.
For some getting up at 6am and feeding horses etc is there happy place, for others Ponsoby road, hence they are lifestyle... if its not your style dont apply.
Mine has a cottage as a rental and we have a couple of grazers with their horses here,
We were considering whether to buy a lifestyle block about a year ago having just escaped Auckland. Instead we decided to rent one. It has proven to be a wise choice. Can barely find enough time to mow the lawns directly around the house between both of use working and looking after a 2 year old :D
I used to spend a fortune on fishing gear. Then I bought a lifestyle block. Now I have no time to go fishing and spend my money on fixing water pumps and fences instead. I also save on gym membership. Shearing a small flock of flyblown sheep with hand shears keeps you fit enough. I do love the space from neighbours and the element of self sufficiency for water and heat, but it’s certainly not for everyone.
You can lawfully light fires and nobody to tell you you're not allowed. Obviously don't let it out of control
Assuming there's not a fire ban.
This is the first year that I have been able to have a fire in January.
For me the most important thing is a decent lawn mower. I have a 72 inch front mounted and can mow the grassed part of a 2 hectare block in and one and a half hours. Avoid animals.
Yeah they clog the blades something fierce.
Spot on with the humour today RC 👍
Lol avoid animals.
"Life sentence" not lifestyle properties.
Aren't the animals the reason you don't need to mow lawns on a LSB?
Double post
I think I need to find a bigger place... because when you have more that you think you need more space.... Society....
Only 7 to 9% down. Seems to be outperforming all other sectors of the property market.
Yeah I have been surprised with the values people here have been getting. The risk is you have a health incident or are just getting old and have to sell.....
But the stuff thats modern and well maintained is selling.
The bare land not so much, people want step on and enjoy... they don't want to have to plan and build stables , arena massive fencing etc etc... I follow every property in Auckland that has an arena for sale, and the modern ones in close locations sell quickly.
As buyer or tire kicker. Either is totally fine. What specs would be your dream
To understand what people pay for and are prepared to pay for. As soon as I finish the stables I am installing LED arena lighting. I have kms of post and rail to do. So its making a dream equrestian property equal to the best around Auckland. I have 7H of stunning land out the back that would make great horse country.
And horsepower country, but the neighbours won't like :(
To me it's astonishing how well prices have held up all things considered. This hasn't become a race to the bottom but I think what's driving that resilience is the hope that eventually, somehow and in some way CPI inflation/retail interest rates will fall.
Even when they do, it's hard to imagine RBNZ using ultra-low rates again. Although they may just decide what they hell and yell "Lolly scramble".
Central banks have been rocking low rates for 15-20 years and what's going on now will be attributed less to monetary policy and more to pandemic and geopolitical upheaval.
So definitely not implausible they'll return at some point.
low rates, maybe, but going back to 0.25% would be daft
Old mate of mine bought for $850k end 2019 and sold few weeks back for $1.39M, 8 or so acres just outside of Palmy, 30 year old 200m2 house, nothing special, jammy bastard.
Was on the market all of 2 weeks.
2019-2022 saw about 50% price increases in and around palmy so that's not surprising.
Hope they checked Horizons flood maps though, pretty scary how much rural land around palmy is sacrificed to save the city proper resulting in a lot of high risk rural land which will be in the spotlight of every insurer now after the recent weather events
I looked at the lim when I purchased and saw the council flood zones and thought hell it would need to be biblical to reach there.......
Last friday it came up to the exact line they had on the LIM..... I lost some fencing That I will fix myself. I can change the fence line only slightly and avoid the main currents next time because there will be a next time.
Funnily enough the only "flood line" the council shows on my property is the man-made "seasonal creek" (5-15m wide, 250m long) that was dug to cater for excess storm water. Clearing out many years of soil buildup was on my to-do list but Gabrielle arrived before I could get to it, so it wasn't quite up to the task, but it cleared within a few hours and the paddocks either side are none the worse for wear.
Clearing it out, of course, is still on my to-do-list...
Atleast gives u confidence in the accuracy of council mapping and LIM info.
Look at the actual areas flooded in hawks Bay.
Small areas which likely are already identified on lims as risk areas.
Then when it happens people are surprised.
The Esk Valley area hit by essentially the river diverting through the suburb is a tiny area where no one should have been living as it wasn't a flood risk it was a death trap.
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