Articles

Subdivide now for lifestyle demand in 2025 (July 2023)

Welcome to the year 2025, where the price of rural lifestyle blocks is on the up and up.  The Covid era of 2020 - 2021 saw an unprecedented boom in prices for all real estate in New Zealand.  Since then there has been a drop in both demand and prices due to high interest rates.  Following a period of consolidation we are now witnessing a remarkable transformation.

During the last couple of years those with a knowledge of the cyclical market have instructed their project managers to move ahead with the process of obtaining resource consents and planning their subdivision.  The ever evolving and restrictive rural subdivision space has limited the opportunities for many and this has added to the high demand for the few sections that we now see on the market. Those who embarked on the subdivision process back in 2023 are now reaping the rewards of their early vision and strategic planning. 

In this current landscape of 2025, interest rates have started falling, creating favourable conditions for property price growth. The reduced cost of borrowing has ignited buyer confidence, leading to a surge in real estate activity – much like we have seen in earlier cycles of the property market.

The property market has rebounded from the previous downturn, reflecting renewed enthusiasm and strong demand. With added connectivity and congested urban areas, rural sections and lifestyle blocks have become highly sought-after, and supply struggles to meet the growing demand.

By engaging specialist subdivision project management companies in 2023, savvy landowners set the stage for success. They navigated the intricacies of council rules, secured necessary consents, and meticulously fulfilled all legal requirements. Their prudence and diligence are paying off, as they now possess the rarest of commodities in today's market: titled sections ready for building.

Those who secured titles on their subdivided land are now perfectly positioned to seize the opportunities of the current booming market.

While we cannot predict the future with certainty, we can learn valuable lessons from the present. The importance of forward-thinking, professional expertise, and navigating the complexities of land subdivision cannot be overstated.

As we predict the coming years, it is important to acknowledge that the future remains uncertain, and our current vision of 2025 may evolve in unexpected ways. Nonetheless, this exploration emphasises the significance of foresight and strategic planning when it comes to subdivision.

Rural lifestyle subdivision is a complex and time-consuming process, influenced by various external factors. However, by engaging professional subdivision project management companies, you can position yourselves for success, ready to seize opportunities as they unfold.

If you have considered subdividing to create sections for future capital returns, we are more than happy to explore the options with you.  Feel free to give us a call!