Lifestyle, investment & peace of mind see city Kiwis moving out.
The weather, health and economic dramas of the past few years have seen many New Zealand city folk head for greener pastures – literally.
There’s something intrinsic in the human desire for space and calm – with the peace of the country the antithesis of city life, surrounded by silences, with stress melting away.
It’s borne out by the numbers – according to PGG Wrightson data, the lifestyle property sector, valued at around $4 billion in 2013, peaked at $11 billion in 2021. This near tripling in value has been due to several factors – Covid included.
“We saw a big exodus [of people from cities] after Covid,” says Peter Newbold, general manager of real estate and livestock at PGG Wrightson. “Although this figure has dropped as the market softened, people are still looking for an escape from the bigger centres.”
Newbold believes that “cities have become complicated”. Crime, traffic, pollution, a lot of bad news coming out of our major centres. It’s creating an exodus to places which provide a different way of life and quiet spaces, with the opportunity to get to know others in the community.
There’s another important impetus – price. The cost of living continues to push many to the edge of their financial limits; this can be mitigated by paying off city-sized mortgages.
“For the average price of a house in Auckland, you can get an amazing residential or lifestyle property in the provinces,” Newbold explains. “People are able to live debt-free, in provincial locations with the same amenities as the city.”
Provincial New Zealand is no longer Hicksville, he says. Even the smallest town has cafés, decent schools, and good roads. The infrastructure in rural New Zealand has also improved dramatically. Roading networks, internet access, phone coverage: the amenities that cities offer are also found in the provinces.
Additionally, the development of flexible works practices, allowing people to work from home and commute once or twice a week, open a new world of opportunities.
Newbold uses Cambridge, in Waikato, by way of example. The new Waikato Expressway links the town to Hamilton and Auckland, providing an easy commute to both centres. Even in this affluent centre, in the heart of thoroughbred country, an Auckland budget will go a long way.
REINZ data for September 2023 shows an Auckland median of $1,020,000, with Waikato sitting at $755,000. Perfect for a professional wanting a different type of lifestyle.
Northland is the biggest market for lifestyle properties in the North Island, with an average sales price of $672,500, with Waikato next in line. In the South Island, the Christchurch district has the most lifestyle properties, with Nelson/Marlborough second.
Queenstown and surrounds are expensive, and a market of their own, but Central Otago also has wonderful opportunities. Elsewhere, the North Otago town of Oamaru, with its wonderful Victorian Oamaru stone architecture and “steampunk” vibe is another spot that draws the “cool” crowd from places like Auckland and Christchurch.
Newbold says lifestyle blocks used to be a retirement dream, but the trend is shifting. Younger working people with children are possibly the largest demographic making the move to the country.
“We are seeing a lot of people aged between 31-50 moving to the provinces,” he explains. “Parents [ concerned about the bad influences in the bigger centres] are drawn to quieter places when their kids are heading towards high-school age.”
Lifestyle changes and affordability are two key factors in moves to the provinces, but investment opportunities can also be factored in. Changes in zoning rules, which allow for more flexibility around subdividing in provincial areas, give people with an eye to the future the opportunity for development.
“My sister is actually subdividing her lifestyle property in Wairarapa at the moment,” explains Newbold. “They will live on one quarter and divide the rest into three sections. So, [lifestyle properties] also makes sense from an investment perspective.”
Newbold believes this trend will develop further in the future, as lifestyle properties decrease in size as population grows: “Two acres will become one acre, then half an acre,” he says. “In the long term, people’s property value, and the potentials for further development, will increase.”
While Newbold acknowledges that the market has been quiet lately, he also believes this provides good opportunities for those wanting to shift to the provinces. “In the current market vendors need to be fair and reasonable. There are good deals to be had.”
He says that while the dramatic price rises of the last decade are unlikely to be repeated, those who are committed to the long game will see value increases: “There will be an improvement . . . it’s just a matter of time.”
If you are considering buying or selling discover what makes PGG Wrightson’s the experts in provincial, lifestyle, and rural property at pggwre.co.nz/we-live-here-too. We live here too, and we’re here to help.