Elevated lifestyle

While the global economy faced uncertain times during the pandemic, interest in the lifestyle property sector has soared, underpinned by growing connectivity, the flexible options afforded by lifestyle blocks and a growing push for self-sustenance.

While the surge of Omicron may have peaked, New Zealanders are now grappling with lasting economic effects including inflation, which continues to deliver rising prices for goods and services.

By mid-year Kiwis are expected to be paying some seven percent more for everyday items including food and fuel, causing some households to tighten the purse strings and look inward at their existing assets as a source of productivity.

Similarly, seasoned landowners are always looking at what’s next and here Bayleys’ national director of rural Nick Hawken explores where key growth opportunities lie for the lifestyle property sector.

GROWING OPPORTUNITIES

As a strong food-producing country, New Zealand’s horticultural industry has remained strong through recent disruptions and the sector has reported record export value growth as consumers around the world enjoy Kiwi-grown produce in growing numbers.

New Zealand’s apple and kiwifruit sectors in particular continue to attract new investors who are looking for home and orchard opportunities that can provide a real return to household budgets.

The attraction of being part of the ‘local food bowl’ and the opportunity to directly market produce similarly appeals to smaller operators, such as avocado growers.

While returns for New Zealand avocado producers have suffered in recent seasons, the consumer has benefitted with cheaper access to fruit. However, it’s the opportunity to directly connect consumers with nutritious produce that also keeps a hobby business alive.

Budding orchardists can also take note of those larger commercial operators working to establish agreeable industry settings, while a preferable growing climate, water supply and well-draining soil make for an ideal crop in New Zealand’s Far North region.

It may sound obvious, however, those investigating their ‘growing opportunities’ are best to conduct thorough research as often orchards can be fickle and may require specialised skill sets. Find out what suits your climate, soil and sunshine, and seek the right advice from experts if necessary.

CONSCIOUS CONSUMER AND FARM PRACTICES

While New Zealand farmers have adopted aspects of regenerative agriculture principles for generations, the concept and commercialisation are gaining mainstream momentum domestically and across the world. The growing awareness of profitable sustainable farming operations appeals to both an increasingly conscious community of landowners and consumers.

Farming practices that mimic natural systems including the diversification of crops and grasses which rely on natural inputs to replenish rather than deplete soil structures are of growing interest to buyers across the lifestyle sales sector.

Leading investment in the area; Kiwi dairy company Synlait Milk and leading world food producer Danone have established a five-year project that aims to better understand how soil management can boost environmental and economic performance on New Zealand farms.

This initiative is just one of 171 projects the Ministry of Primary Industries (MPI) has co-invested $160 million of funding into through its Sustainable Food and Fibres Futures (SFF Futures) fund. The project findings are set to provide evidence-based applications of regenerative agricultural practices in New Zealand.

While the impact of these research programmes will be hugely beneficial for the farming community, it is expected there will be a trickle-down effect for lifestyle property owners that are seeking more efficient land-use strategies.

The adoption of regenerative agricultural practices, no matter how big or small offers lifestyle property owners a chance to future proof their assets by investing in an area of growing importance for the rural community and consumers.

THE BUZZ ON HOBBY FARMS

The quest for more natural food sources in the wake of disrupted supply chains is driving increasing interest in the hobby farming sector; with landowners exploring livestock for milk, specialist vegetable crops and ideas outside the box including beekeeping.

Now a $5 billion industry in New Zealand, the latter has seen lifestyle property owners unlock the potential of apiculture by purchasing beehives and utilising the valuable role they play in pollination to produce goods including beeswax for household items, cosmetics and honey.

Hive registrations with MPI have recorded a sizeable uplift in recent years and there is an emerging market for professional beekeepers and hive management companies for those looking to develop a viable supplementary income stream essentially managed and maintained by an external operator.

Lifestyle property owners are finding beekeeping a relatively straightforward way to supplement income and improve the pollination of sites while gaining valuable knowledge and the enjoyment of a new hobby.

ANTIPODEAN ASPIRATIONS

New Zealand’s stable political climate and ‘safe haven’ status have made a lasting impression on buyers based offshore, especially those seeking the land and lifestyle unavailable in large cities.

In its recent Global Buyer Survey, Bayleys’ global partner Knight Frank found that 39 percent of the expatriates surveyed have purchased a home in their country of origin since the start of the pandemic.

For Kiwis that have already returned home, the switch to more agile working environments following prolonged lockdown restrictions, together with better connectivity, raises more questions about the need to live close to the city.

Expatriate Kiwis are returning home with a little more cash in their pockets, and after living in bustling cities some are finding better value for their children and families in a move to the country, away from urban confines.

Equally, migration regionally continues to be a theme supported by economic growth in the rural sector, driving the need for skilled labour.

This growing prosperity provides an attractive alternative to city life for many, with country living providing a change in pace or the opportunity for individuals to create their own connection with the land.

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