Tuesday, July 5, 2022

Farm sales reflect confidence

Early winter activity reflects increasing confidence according to the data released by the Real Estate Institute of New Zealand (REINZ). 

The increase in the dairy payout, lower New Zealand dollar and continuing low interest rates are the key drivers of this confidence.

There were 68 more farm sales (16.7%) in the three months ended June 2013 than the same period a year ago. 1501 farms were sold in the year to June 2013, 6.2% more than the year to June 2012. 

The median price per hectare for all the farms sold in that three months was $19,716/ha, a 12.3% increase on the $17,565/ha recorded for the 3 months ended June 2012. 

Seven regions recorded increases in sale volume for the three months ended June 2013 compared to the three months ended June 2012. The largest increase in sales was in the Waikato which increased by 29 sales, Auckland by 26 sales and Northland by 11. Three regions decreased in sale volume, including Wellington by 5 sales, Nelson down 6 sales and Southland 3. 

REINZ reported consistently strong enquiry in all regions in contrast to the normal seasonal pattern in winter. The limiting factor on farm sales has been the availability of properties to meet demand.  

Dairy Farms: For the three months ended June 2013, the median sale price per hectare was $29,555 over 66 properties, compared to the $27,919 per hectare across 47 properties over the same period a year ago. The median size farm was 132 ha for this period. 

Finishing Farms: The median price per hectare for the three months ended June 2013 was $18,672 across 42 properties, compared with $18,851 per hectare for 82 properties sold over the same period a year ago. The median farm size was 58ha for this period. 

Grazing Farms: The median price per hectare for the three months ended June 2013 was $13,831 across 228 properties, compared to the $13,025 per hectare across 205 properties during the same period a year ago. The median farm size for this period was 58ha.

Horticultural Farms: The median price per hectare for the three months ended June 2013 was $120,345 across 42 properties, compared to $130,208 per hectare across 31 properties during the same period a year ago. The median farm size over this period was 6 ha.

Lifestyle Farms: There was an 18.2% lift in the market for Lifestyle properties for the three months ended June 2013, compared to the same period a year ago, with 271 more sales. 1,736 sales were recorded over this period. The national median price per hectare for lifestyle properties rose by $27,500 to $505,000 for the three months ended June 2013 compared to a year ago. 

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