Buying a Lifestyle Block
A distinctive feature of the property market over the past few years has been the strong performance of lifestyle property.
According to the Real Estate Institute of New Zealand (REINZ), the median sale price for lifestyle property reached $384,165 in the December quarter of 2005, an increase of $74,000 or 23.8% on the $310,225 recorded for the same period in 2004. This rise continues an upward trend which began in March 2004.
The ongoing popularity of lifestyle property is apparent not only in escalating values but also in the consistently high level of sales. There were 7,940 lifestyle sales in 2005 compared with 7,391 the previous year.
Quotable Value New Zealand (QVNZ) estimated the number of lifestyle blocks at 139,000 in 2003, increasing by 6,800 per year. In terms of area, lifestyle property accounts for approximately 755,000 hectares, or six per cent of New Zealand’s 11.8 million hectares of agricultural land.
According to Bayleys Research, lifestyle purchasers are a diverse group. They come from backgrounds including retired farmers wishing to remain involved in agriculture, although on a smaller scale than during their working lives, hobby farmers and urban professionals.
The latter group accounts for a substantial proportion of lifestyle sales - people who work in the city, but prefer to live in a rural environment. For these purchasers proximity to urban centres is an important consideration in purchasing a lifestyle property. Properties close to cities or major towns tend to appreciate at faster rate than those further out. Lifestyle properties in the Auckland region are the most expensive, with a median value of $672,500, according to REINZ figures for January 2006.
Chris Jones , a lifestyle and bare land property specialist in Bayleys Christchurch office, says many of the purchasers he deals with are ”lifestylers” in the truest sense of the term.
“Many of my clients have no intention of using their land for agricultural purposes. They are simply looking for change. Many young couples seem to base their decision to buy on a belief that the countryside would be a great place to live and raise children.”
Jones says there are, however, a number of practical factors this type of buyer should take into account. “Distance from schools, workplaces, amenities and sports and social clubs are considerations, as are the size and manageability of the block. A good reliable water supply, also, is essential.”
Other lifestyle property articles by Bayleys
Farm Parks Lifestyle Property
Making an Income from Lifestyle Property
Bayleys Realty Group was established by the Bayley family in the early 1970s and has since grown into one of New Zealand’s largest real estate companies, with over 50 offices nationwide employing more than 1000 people. John and David Bayley, who founded the company with their late parents Graham and Pam Bayley, are still the principal shareholders in the private New Zealand-owned company.
Bayleys has a strong presence in all categories of the real estate market including country property. We have an extensive network of country salespeople around New Zealand and offer a complete range of properties from trophy farms and lifestyle blocks to orchards and vineyards.
