Rise continues for rural property market

MARKET: The number of rural property sales in Hawke's Bay is continuing to rise. PHOTO/FILE

People flocking to the region to enjoy the Hawke's Bay lifestyle could be driving up sales of properties in the rural sector.

Data released yesterday by the Real Estate Institute of NZ (REINZ) showed there were more farm, and lifestyle property sales nationwide for the three months ended September 2016 compared to the year before.

In the three months to September, 51 more farms were sold, and 155 more lifestyle properties.

This was mirrored in Hawke's Bay, where the 27 farms sold last month in Hawke's Bay continued the steady increase seen since 2014 when eight farms were sold, and up from last year, when 18 farms were sold.

Likewise, lifestyle property sales had risen from 51 sales in September 2014 to 86 last month. The number of properties sold in August was even higher, at 95.

Property Brokers Waipukurau rural sales consultant Pat Portas said, "the lifestyle market is on the up."

"We're getting a lot of out of town buyers, its like the rising tide in other areas of New Zealand."

Over the past 12 months, Mr Portas said more South Islanders seemed to be buying in the bay, and there was more "strategic buying" from farmers as part of their succession plans.

"Hawke's Bay has always been traditionally a farming area, and it's well recognised for selling good stock," he said. "Buyers recognise the fact that its not a bad area to be living in."

Lifestyle property sale numbers were also up for Colliers Rural and Agribusiness director Hadley Brown, as was outside interest.

"A fair chunk [of buyers] seem to be looking for the lifestyle, coming out of Auckland looking to buy here for the lifestyle element of it," he said.

Although farm sales numbers were not as high because of the late winter, "Spring is going to be busy."

Mr Brown said they were seeing the newer corporate sort of buyers, looking to invest in the region, "which is very good for Hawkes' Bay".

Although REINZ reported median sale prices across Hawke's Bay had dipped, Mr Brown said this could reflect lower value properties in some areas of the region dragging the median down.

"The market is stronger than it's ever been," he said.

Harcourts Waipukurau owner and salesperson Michael Harding said while lifestyle properties were selling well, farms "are not in the same sort of stable".

"Lifestyle properties are in short supply, and their values are increasing," he said. "Farmers have to make a living off their properties, that is the distinction."

Some rural properties had been sold to out-of-town buyers, but Mr Harding said the Auckland property market was affecting them in other ways: "[Aucklanders] buy in Napier and Hastings, and people from Napier and Hastings are buying here."

REINZ Rural Spokesman Brian Peacocke said the high volumes of lifestyle block sales for the three month period ending last month confirmed the strength and health of the market - to the extent those high volumes now seemed to be the norm.

Farm sales volumes reflected a status quo position or a slight easing compared to volumes for the previous three month period, he said.

"From a rural property perspective, September has been a month when appraisals have been carried out in anticipation of marketing programmes being launched for the spring sale period of October, November and December.