Buyers keen on lifestyle blocks

Lifestyle blocks are in hot demand.

Northland was among the top three regions when New Zealand lifestyle-block sales rose by 46.7per cent in the three months to August 31 compared with the same period last year.

Real Estate Institute of New Zealand (REINZ) figures show Northland sales doubled by 134 to 268 and nationally there were 675 more lifestyle block sales, for a total of 2120, with Auckland (211 more sales) and Waikato (153) in the lead.

The national median price for lifestyle blocks rose by $34,490 from $510,510 for the three months to August 2014 to $545,000 for the same period in 2015.

A REINZ report for last month's lifestyle block sales noted strong activity throughout the wider Auckland/Northland region, with indications of an increase in buyers in the $1.5-$2million bracket, evidence of numerous multi-offers, and solid levels of listings indicating a busy spring period to come.

For other rural properties, the REINZ report recorded 46 Northland farm sales in the quarter - 30 grazing farms, two dairy units, three arable, five finishing, two forestry and four horticulture blocks.

The two forestry blocks had the highest median sales price per hectare of $35,853 recorded in the country's forestry sales last month. It is understood the sales applied to 1.7ha south of Kaeo, which sold for $120,000, and a 22ha block which sold for $86,000.

The two Northland dairy units sold had a median selling price of $14,511 a hectare, while the median for New Zealand was $26,906 a hectare.

REINZ rural spokesman Brian Peacocks said caution was the dominant factor in the rural sector, particularly in the diary industry where prudent operators were trimming costs.

"Brighter spots within the industry include a fall in the exchange rate, a reduction in interest rates, a strong beef market, a slight turnaround in prices at the most recent global dairy auction, and the announcement of of 50c per paid up share for Fonterra suppliers.

"Causing nervousness throughout the northern and eastern regions of the country is the prediction of an El Nino over the summer that would be most unwelcome."

The three arable farms sold in Northland had a median sales price of $105,459/ha (national median $54,000/ha) and the region's four horticulture blocks had a median price of $130,331 (national median $190,903).

The 30 grazing farms sold in Northland had a median sales price of $11,635/ha (national median $16,998) and the Northland finishing farms sold for a median $9213/ha.