Smaller blocks of land sought

13-10-2008 | Not Specified

Increasing numbers of lifestyle properties are cropping up around New Zealand's towns and cities as farm land converts to residential use, according to new property research.

The development of country lifestyle patches is drawing families out of the city to greener locations within 45 minutes driving of central business districts, according to the research findings from real estate company Bayleys.

Bayleys Research senior
analyst Ian Little said traditionally, buyers of lifestyle blocks-rural land holdings of between 0.4-30ha had been interested in the land's income-producing potential, such as from grazing or orchard production.

Close to half of lifestyle blocks nationally deliver annual returns of $40,000.

"While these groups are still represented, people today are buying lifestyle blocks which are much smaller than the traditional ‘10-acre block', and have no intention of using the land for agricultural purposes. They are in it strictly for the country ambience."

He said the five most popular reasons people buy these properties today are country lifestyle, peaceful environment, space and privacy, clean air, and a healthy place to raise children. While wishing to enjoy the benefits of a rural lifestyle, many purchasers still require access to metropolitan areas for employment and business purposes.

Figures from the Ministry of Agriculture and Forestry estimate that the number of lifestyle blocks around NZ was increasing by 7000/year, although this number was expected to have fallen off in the current subdued property market.

Little said in areas where lifestyle subdivisions have been limited - perhaps due to stringent council subdivision rules-value growth has been marked.

The Ministry for the Environment resource management act implementation manager Craig Mallett said lifestyle blocks were very popular around urban areas, and in general, councils had done a good job of creating an appropriate balance of agricultural and residential uses of the land.

"They (lifestyle blocks) are moving now to urban residential limits so that the smallest lifestyle blocks stay within certain boundaries."

He said this has been a planning issue for more than 20 years now, and it can generate concern about urban sprawl and loss of productive farmland. However, some lifestyle blocks are quite productive economically, and contribute to the economy.

Bayleys country manager Richard Graham said that for some farmers, land subdivision had been a quick way of accessing capital to re-invest into their commercial operations.

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