Leasehold Sales Trends

Hawke’s Bay Regional Council has been seeing the trend in recent years of people purchasing leasehold property and quickly freeholding it.

A report on Council’s leasehold land was provided to Hawke’s Bay Regional Councillors recently.
In the current financial year a further 38 leasehold properties have been freeholded with sales approaching $4 million.

Since 2002 Hawke’s Bay Regional Council has offered a discount on freeholding sales to owners, based on the lessor’s interest in the land.

In total 667 properties have been sold in the 8 years since new rules came into effect. Prior to 2002 freehold sales were less frequent; for example, between 1990 and 2002 only 300 properties were freeholded.

Only 8 lessees have chosen a deferred rental option over the past three years. A graduated payment option is also available but no lessees have taken this up.

Hawke’s Bay Regional Council still owns 1,043 leasehold properties, almost half the number owned in 1990.