Demand for lifestyle real estate in New Zealand seems to have improved over recent months, as buyers hone in on properties that offer them more than just a place to live.
During the three months to November, the Real Estate Institute of New Zealand (REINZ) revealed there were 568 more lifestyle property sales throughout the nation than the previous year. The value of these homes reached NZ$5.911billion, bringing the amount to an all-time high.
Where this type of real estate is concentrated
There are some parts of the country that are more popular for lifestyle sales than others. The north and south of Auckland City have been hot beds for activity, REINZ noted, and in many cases vendors' expectations have been exceeded.
Other areas where buyers have been keen to find property for sale include the Bay of Plenty, where a shortage is now starting to emerge. Meanwhile, local buyers are particularly active in Wellington, Horowhenua and Wairarapa.
Reasons behind the trend
One of people's main motivators for buying lifestyle property could be that their household wealth is increasing. Figures from Statistics New Zealand show older families in particular generally have a high net worth, which may lead them to seek new ways to invest their money.
Property often seems like a safe investment option. Data from QV reveals that property values in New Zealand increased 15 per cent between November 2014 and 2015. In the main urban areas, this rise stands at 17.6 per cent.
The investment potential of lifestyle properties
There's also the fact that properties with large expanses of land have the potential to increase in value. Having land for sale can offer a nest egg to buyers they can rely on in the future.
REINZ figures show the national median price for lifestyle homes increased 5.8 per cent between the three months to November 2014 and the same period a year later. There was also an improvement in the amount of time it takes for these homes to sell, falling 10 days between October and November.
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