Volatility continues in property sales

• Published date: 27 October 2021
• Publication title: Central Rural Life

Overall, there were 1650 lifestyle property sales in the three months ended September 2021, compared with 2720 lifestyle property sales for the three months ended September 2020 (-39.3%), and 1835 lifestyle property sales for the three months ended August 2021.

In the year to September 2021, there were 9464 lifestyle properties sold. That was 1800 (+23.5%) more than in the year to September 2020. The value of lifestyle properties sold was $10.26billion for the year to September 2021.

The median price for all lifestyle properties sold in the three months to September 2021 was $950,000 — $195,000 higher than in the three months ended September 2020 (+25.8%).

The median price for bare land lifestyle properties sold in the three months to September 2021 was $490,000, which was $90,000 higher than in the three months ended September 2020 (+22.5%).

The median price for farmlet lifestyle properties sold in the three months to September 2021 was $1,201,112. That was $291,112 up on the three months ended September 2020 (+32.0%).

‘‘The sales volumes for lifestyle properties for the three-month period ending September 2021 reflect a 10% reduction from the figures for August 2021,’’ REINZ rural spokesman Brian Peacocke said.

‘‘But more significantly, close to a 40% drop from the equivalent period 12 months ago, to place the 2021 figures at a level very similar to the figures for September 2019.

‘‘Why the drop? Perhaps partly because of the COVID-19 pandemic, partly because of the shortage of stock, and possibly partly because of anticipation of interest rates and debt reduction requirements from the banking sector being likely to increase in the foreseeable future.

‘‘Whatever the case, the market is the market — conjecture as to the reasons why and the causes for changes in the market is simply that, conjecture. Crystal ball gazing is an art practised by many but perfected by few.

‘‘Of equal significance, however, is that the national median price has increased from $940,000 last month to $950,000 for the period ending September 2021,’’ Mr Peacocke said.

‘‘Significance? Supply and demand seem a reasonably logical response.

‘‘Relevance? Debatable.’’

Points of interest for September 2021

Upper South Island

Sales activity caved in this month in the Nelson/Marlborough region (11 sales compared with 29 sales in 2020) but experienced a good lift, of more than 30%, in the median price.

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