John Sisley: Lifestyle property values still high

For the 18 months or so leading up to Christmas 2016, the lifestyle property market was on a huge growth curve throughout most of the country.

Virtually every month saw a record number of transactions compared to the previous 20 or even 30 years.

Values climbed accordingly, the number of days from listing to sale dropped and most properties attracted offers from multiple purchasers.

Waikato's property market was very much part of this, as strong sales of residential property in urban centres, particularly Auckland, stimulated interest in lifestyle properties on the outskirts, creating a ripple effect as former urban dwellers discovered they had the equity to chase the rural dream.

In the past few months, however, that activity has slowed. Locally, the number of lifestyle property sales in January 2017 was around 60 per cent of the January 2016 sales, and it appears figures for February will show a similar decline.

While this is a significant reduction, in line with most other regions, Waikato lifestyle property values are still at or ahead of peak levels, and it will be another two or three months before we can confidently pick out underlying market trends.

In the meantime, if you are looking to sell a lifestyle property, you need to do your utmost to present and market your place.

On the other hand, as a buyer, if you see something you like, you should go for it.

Regardless of what state the market is in, if you come across a property that satisfies most of your requirements, you should pay it your attention.

Meanwhile, in the rural property sector, business continues much as it has been on a 'steady as she goes' theme.

While the number of local dairy farms sold since the start of this year is slightly ahead of this time last year, prices are almost identical, with no significant change to average land values for Waikato dairy property since early 2014.

Judging by what my PGG Wrightson Real Estate colleagues elsewhere in the country are reporting, with optimism rising in the dairy sector as the payout forecast becomes more sustainable, we could be in for a busier autumn and spring as farmers look to the property market with greater confidence.

- John Sisley is the PPG Wrightson Real Estate Waikato Manager.