Regional growth drives renewed confidence in lifestyle market
New Zealand’s lifestyle property market is gaining fresh momentum as confidence returns to the wider housing sector.
Independent forecasters expect house prices to rise over the next two years – a trend set to bolster demand for lifestyle blocks as buyers seek value and space beyond city boundaries.
Eos Li (pictured), Bayleys insights and data analyst, said high stock levels are giving buyers more time to choose, but serious purchasers are acting quickly when quality listings appear.
“Transparent, evidence-based appraisals remain critical to setting prices that generate engagement and offers,” Li said. “More sellers are aligning expectations with current market realities, although some still benchmark against peak values.
“The lower interest rate story will likely drive the market in the short-term, while upgrades to rural broadband and transport links, combined with ongoing flexible work patterns, are also a consideration.”
She added that proposed planning reforms could “unlock more lifestyle land on the edges of urban areas,” potentially shifting future market dynamics.
Waikato and Bay of Plenty lead regional growth
Raymond Mountfort, Bayleys national country manager and general manager Auckland residential & lifestyle, says activity in the Waikato and Bay of Plenty has been a standout.
“They’re outperforming other regions for sales volumes, in some instances, quite significantly,” Mountfort said. “That speaks to the desirability of the golden triangle economic zone, and the connectivity advantages these regions have.
“There’s been quite a lot of inventory being worked through nationwide as the general market improves. but as many vendors target spring to list lifestyle properties, now we’re focusing on gathering new stock.”
He said landbankers and developers are back in the market, buoyed by expectations that government efforts to reduce red tape around fringe land will encourage new development.
Auckland lifestyle market steady but poised for uplift
Mountfort noted Auckland’s lifestyle market was “somewhat subdued from March to August,” with a 7.7% year-on-year increase in sales volumes sitting behind other regions.
“The fairly strong upswing in Auckland’s residential sales volumes, especially in the higher value brackets, has likely diverted some activity away from lifestyle sales,” he sid. “That said, when central suburban prices improve, properties on the city fringes suddenly look like great value.”
Mountfort added that most lifestyle buyers are Auckland-based families seeking space, community, and balance.
“Properties in areas where there are smaller primary schools with strong connections to the community are very appealing,” he said. “The sweet spot is still around the two-hectare mark, or even slightly less, with a substantial home and improvements.
“People moving from suburban locations do still want a reasonable standard of amenity nearby, so that’s why Franklin remains one of the largest and most popular areas for lifestyle buyers, as townships like Pukekohe are growing and flourishing.”
Bay of Plenty market heats up with strong enquiry
Matt Clutterbuck, Bayleys Bay of Plenty lifestyle and country sales manager, said lifestyle demand in the region has accelerated since autumn.
“Numbers at open homes have increased, we’re seeing more offers on properties, and there are cash buyers in the market actively looking to purchase,” Clutterbuck said.
“The latest ASB regional economic scorecard has Bay of Plenty top of the list, with a robust kiwifruit season contributing to the region’s good fortunes. People love the Bay, and buyers for lifestyle properties are predominantly local townies looking to get out into the country.”
He said city buyers are re-entering the market too.
“We’re starting to see buyers from New Zealand’s bigger metropolitan areas visit and enquire on our properties again, and some of them are quick to act purchasing BOP lifestyle properties,” Clutterbuck said.
“People are increasingly looking for properties with a second dwelling to allow multi-generational living, and opportunities with good shedding to allow work-from-home businesses. Lifestyle properties right across the region are in high demand, with the immediate Tauranga surrounds remaining popular, along with anywhere offering water views and proximity to schools and amenities.”
Marlborough lifestyle market steady with northern interest
In Marlborough, Bayleys director Glenn Dick says the lifestyle sector “continues to attract steady enquiry, and supply is also consistent.”
“We don’t tend to get peaks and troughs of activity on the listing or sales side,” Dick said. “It just ticks along nicely.”
He said the “hot price point is around $1.3 million to $1.5 million,” and while interest is usually balanced between local and out-of-town buyers, “we surprisingly seem to be seeing more interest coming from the top of the North Island and we’re unsure what is driving this.”
Dick added that “buyers looking for Marlborough rural property are opting for straight lifestyle opportunities, without the pressure of needing to drive income,” with family interest strongest within 15 minutes’ drive of Blenheim.
National snapshot: lifestyle sales accelerate across NZ
Bayleys data shows lifestyle deals climbed sharply in the five months to Aug. 31, underscoring renewed market strength:
- Lifestyle deals up 18% year-on-year, while listings rose just 3%.
- Regional standouts: Northland +6%, Auckland +7.7%, Marlborough +36%, Hawke’s Bay +37%, Bay of Plenty and Waikato both +86%, Taupō +25%.
- Total deal value: Marlborough +80%, Bay of Plenty +78%, Waikato +62%, Hawke’s Bay +47%, Taupō +48%, Northland +12%, Auckland –5%.
- Average days on market down more than 60% YoY, reflecting faster turnover and improved buyer confidence.
Key takeaway for mortgage advisers
Lower interest rates, improved regional infrastructure, and planning reforms are reigniting demand for lifestyle properties nationwide. As Eos Li notes, “The lower interest rate story will likely drive the market in the short-term,” while upgrades to connectivity and flexible working trends continue to shape buyer behaviour in 2025.
Read the full Bayleys article here.
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