Rural Insight -
Prices calm after two years of year-on-year gains. Sale processes are generally taking longer with more conditional buyers present.
Similar to residential properties, the ability to secure finance has been impacted by the CCCFA changes and overall affordability has been impacted by increases in interest rates. Buyers are becoming more selective about properties.
Buyers are increasingly looking outside of their local areas, often driven by a desire for a remote working lifestyle change post-pandemic. This trend is most apparent amongst Auckland-based buyers who can also benefit from more affordable prices in the regions.
Lifestyle properties with unique and high-spec homes continue to be in demand. Coastal locations and architecturally designed homes, alongside amenities like pools, ponds, ancillary buildings (sheds) and equestrian facilities are particular standouts.
A combination of improved connectivity coupled with increased acceptance to accommodate working from home has enabled lifestyle ownership for more buyers. The search areas for some buyers are also expanding as they become less sensitive to driving distances.
The impact of the recently released National Policy Statement for Highly Productive Land remains unclear. Aimed at protecting land used for the production of food, it may reduce subdivision potential for larger rural properties on the urban fringe, constraining the future supply of new lifestyle properties.