Demand for Northland lifestyle blocks rises

Lifestyle block sales are up with many younger families looking for some space for their children to have a motorbike or horse. Photo / Bayleys

While the Real Estate Institute of New Zealand (REINZ) recorded five fewer farm sales nationally for the three months ended October 2016 than for the same period last year, Northland had 11 more sales, mainly due to the number of grazing properties sold in the region rising from 21 to 31.

The median price for the 31 Northland grazing property sales was $9618 a hectare, only $18 above above the median for the 21 regional sales over the same period last year.

The median sales price per hectare for the 143 grazing properties averaging 52ha sold nationally in the three months to October 31 was $15,242, down 20.8 per cent over the past 12 months.

Along with the 31 grazing farms, the sales of two dairy units, four finishing farms, three forestry blocks and an orchard were recorded for Northland over the three months to October 2016.

As four sales are required to report a median price, only the regional finishing farm sales median of $17,596 a hectare and grazing median was provided in the REINZ figures, although a median price of $11,883/ha was reported for all 41 Northland sales.

Only West Coast on $4599 had a lower regional all farms $/ha sales price median for the three months to October 2016.

Bay of Plenty had the highest sales median per hectare of $145,876 a hectare - including the sale of 21 horticulture properties averaging $276,103 - with Auckland next on $42,901 a hectare followed by Waikato on $38,385.

The median price for the 353 farms sold nationally for the three months ended October 2016 was $25,974. REINZ rural spokesman Brian Peacocke highlighted reduced activity in the Northland dairy sector, with some marginal dairy units changing to beef.

"Global dairy trade auction prices have continued to improve, albeit with a degree of volatility, and the beef market has continued to steam ahead on a solid plateau of prices," he said.

Mr Peacocke also noted how issues surrounding Healthy Rivers, Plan Change One and nitrogen reference points proposed by the Waikato Regional Council were causing concern and confusion among many landowners in the higher catchments of the Waikato and Waipa rivers.

Meanwhile, there were 2175 lifestyle property sales nationally in the three months ended October 2016, with the REINZ highlighting "a solid strengthening in volumes" in Northland where sales increased to 304 from 260 for the same period last year.

The median sales price for Northland lifestyle properties increased from $347,500 a hectare in the three months to October last year to $380,000 in the same period this year.

Nationally, the median price was $20,000 higher at $545,000 for lifestyle block sales in the three months to October 2016 than for the same period last year.

In the Auckland region, the price increased by $135,000 (+13 per cent) from $1,035,000 to $1,170,000 over the year, with the price rising 31.9 per cent to a record $620,000 in the Waikato region.

Commenting on the buoyant lifestyle market, Bayleys Tauranga property consultant Jeremy Pryor said lifestyle block purchasers had changed in recent years.

"We used to primarily see retired farmers from the Waikato come over. Now though, there are not so many single operator dairy farms around for people to retire off, so that's dropped away."

Instead he was observing a mix of baby boomers keen to exit Auckland before they were too old to enjoy a larger block of land, and younger families who may have been fortunate enough to own a house early, enjoy the gain in value and had now decided to exit city life while the family was still young.

"The older buyers tend to prefer a property that has the ability to earn them some income, while younger families may be looking for some space for the kids to have a motorbike or horse," he said.

While loathe to pin a price on blocks given their significant variety, Mr Pryor said most in his area were selling for $1 million plus.