RURAL: Lifestyle property values reflect urban real estate market. Image supplied.

LIFESTYLE property has become more associated with houses on large plots, particularly in areas close to cities, rather than the traditional 10-acre blocks favoured by `hobby’ farmers.

The lifestyle market is becoming more closely linked with residential real estate, moving away from the traditional association with rural land, says Ian Little of Bayleys Real Estate.

Over the past three years lifestyle property sales volumes and values have mirrored the residential sector, going through a wave of falling, then rising, he says.

Sales volumes and values trended down from the latter half of 2007 and throughout 2008. But sales numbers and values recovered in 2009.

“It is likely values will continue to fluctuate on a quarterly basis over the next year as the economy fully emerges from recession before gathering renewed momentum in the medium term,” Mr Little says.

“Locations close to major urban centres are likely to continue to attract the highest levels of market activity as purchasers look to benefit from a country lifestyle while commuting to town for work.”

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The median price for a lifestyle property in the Auckland region fell to $700,000 in the three months to last February from $762,500 in the three months to February 2008, according to Real Estate Institute of New Zealand figures.

Numbers of lifestyle blocks sold in the region also fell to 182 in the three months to last February in comparison with 227 in the three months to January 2010, and down from 242 in the three months to February 2008.

However, Mr Little says the strong performance of lifestyle property reflects its unique appeal — the opportunity to live within a rural setting which provides space, along with a feeling of tranquillity — and is regarded as an excellent environment in which to bring up families.

“This will ensure continuing demand for this type of property.”

The lifestyle property market, he says, outperformed the residential market in the 2000s with Real Estate Institute of New Zealand statistics showing the average national sale price for residential property increased by 108 per cent.

The average national sale price for lifestyle property was 138 per cent higher than at the start of the decade.