Confidence Underpins Continued Rural Growth

23 MAY, 2001

For the ninth consecutive month the national sales volume for rural property has risen steadily and the sales volume for April 2001 has improved on both April 2000 and March 1999, and the national median sales price improved from last month and last year, according to Mr Murray Cleland, rural spokesperson for the Real Estate Institute of New Zealand.

Mr Cleland said today that the confidence in the rural sector underpinned the continued upward trend in sales and values.

He said, “Certainly, the continued improvement in the REINZ rural statistics can, to some extent, be attributed to it being the traditionally busy season for rural real estate, but that does not alone account for the degree of growth being experienced. “

“To place the statistics within context, several issues currently impact rural New Zealand, including extremely dry conditions in the South Island, biosecurity issues arising from the outbreak of Foot and Mouth in Britain and ongoing public discussion regarding the final form of the dairy merger. Despite these seemingly negative influences, the rural sector remains buoyant, indicating the degree of confidence in the rural sector.”

According to statistics released today by the Institute, both the national median sales price and national sales volume for April 2001 have risen over April 2000 and March 2001.

The April 2001 national rural median price has risen 31.89 per cent from last year.

The national median sale price for April was $765,000, compared to the March median of $650,000 and the April 2000 median of $580,000.

The national sales volume for April was 315, compared to the March sales volume of 265 and the April 2000 volume of 179.

Sales in the lifestyle block market has eased from March, but rose from those recorded in April 2000, while values rose on year-to-year and month-to month comparison. Statistics for April reported 514 transactions at a median sales price of $212,000, compared to 553 sales in March at $195,000 and 375 in April 2000 at $200,000.

The demand for dairy properties remained consistent on a month-to-month basis and rose on year-to-year comparison, with 85 properties changing hands during April and March 2001 and 49 in April 2000.

The April 2001 median sale price for dairy properties of $1,500,000 was up on both the $1,200,000 recorded in April 2000 and the $1,000,000 recorded in March 2001.

The national median sale price has increased by 31.89 per cent from April 2000 and all sectors bar two have recorded an improvement on a year ago, those being forestry properties, easing 67.75 per cent and High Country Merino, where no comparison is possible due to sales recorded in April 2000.

Those sectors whose median price has increased from April 2000 include horticultural property, improved by 10.46 per cent; arable property, increasing by 29.72 per cent; grazing property, increasing by 30.61 per cent; and finishing property, improved by 16.23 per cent.

The national arable property median sale price was up on both a year to year and month to month basis, from $1,283,500 in April 2000 and $465,000 in March to $1,665,000 in the latest period, while sales remained consistent with the eight recorded in April 2000, and rose two from the six sales recorded in March 2001.

Horticultural property sales rose on both year-to-year and month-to-month comparison, with 30 sales in April 2001 compared to 25 sales in April 2000 and 22 sales in March 2001. The median price rose from last year and last month, from $430,000 in April 2000 to $475,000 in the latest period, and $430,000 in March 2001.

The median price for finishing properties was up from last month, and last year, with $680,000 recorded in April 2001 compared to $650,000 in March and $585,000 twelve months ago.

The sales volume for April was also up from last year and last month, at 69 in April 2001 from 26 a year ago and the 59 recorded in March 2001.

One hundred and twelve grazing properties sold in April, up on the 78 sales in March and the 66 recorded in April 2000. The median sale price was up from last year and last month, from $367,500 in April 2000 and $477,500 in March 2001, to the $480,000 recorded in April 2001.

-ENDS-

Regional highlights:

Northland
Nineteen farm sales were recorded in Northland in April, equivalent to April last year and three more than March. Eight grazing, six finishing, and five dairy properties made up the total. The median farm price was $700,000, compared with $322,931 in March and $230,000 in April 2000.

A total of 42 lifestyle block sales were recorded for April, equal to March and eight more than the 34 sold in April 2000. The median lifestyle block price was $205,000, down on both March’s $159,000 and the $127,250 recorded in April 2000.

Auckland
Nineteen farms sold in the Auckland region in April, seven more than March 2001 and eleven more than April 2000. Sales comprised five dairy, three horticultural, two special, and nine grazing properties. The median farm price was $880,000, compared with $672,500 in March and $330,000 in April 2000.

Sales of lifestyle blocks rose on both month-to-month basis and year-to-year comparison with 117 sales recorded, compared with 106 in March 2001 and 80 in April 2000. The median lifestyle block price was $315,000, compared with $317,500 in March and $319,500 in April 2000.

Waikato
The 64 farms sold in the Waikato were 42 more than April last year and 23 more than the sales recorded for March. The sales comprised 25 grazing, 34 dairy, three finishing, one horticultural and one forestry property. The median farm price was $1,000,000, compared with $1,100,000 in March and $875,000 in April 2000.

Fifty-seven lifestyle blocks sold during April, compared to 51 in April 2000, and 29 in March. The median lifestyle block price was $225,000, compared with $212,500 in March and $185,000 in April last year.

Bay of Plenty
Nineteen farms were sold, five less than in March 2001 and equal to April last year. Fourteen horticultural, four dairy, and one grazing property made up the total. The median farm price was $1,100,000, compared with $715,000 in March and $625,000 in April 2000.

Thirty lifestyle blocks were sold, 20 less than March and three less than April 2000. The median lifestyle block price was $212,500 for April, more than both the $270,000 recorded for March and the $225,000 in April 2000.

Gisborne
Seven properties changed hands in Gisborne during April, one less than March and six more than in April of last year. The median farm price was $900,000, compared with $336,000 in March 2001 and $1,100,000 twelve months ago.

Six lifestyle blocks changed hands in the region, three less than in March and one less than the same month last year.

Hawkes Bay
Nine farm settlements took place during April, equal to March 2001 and four more than in April last year. One grazing, one special, two finishing and five horticultural properties comprised the total. The median farm price was $290,000, compared with $574,062 in March and $340,000 in April 2000.

Lifestyle block sales fell to 18 in April from 28 in March but rose on the 16 sales in April last year. The median lifestyle block price was $163,500, compared with $144,500 in March and $267,500 last April.

Taranaki
Fifteen farms changed hands in Taranaki compared with twelve in March and twenty in April 2000. Five grazing, one finishing, one horticultural, and eight dairy properties comprised the total farm sales. The median farm price was $750,000, compared with $499,259 in March and $550,000 in April 2000.

Fourteen lifestyle blocks changed hands in the region, four less than March and nine more than the same month last year. The lifestyle block median price was $185,050, compared with $182,500 last month and $170,200 last April.

Manawatu/Wanganui
Farm sales rose by seven from last month to 30 for April 2001, and compared to 15 sales in April 2000. Seventeen grazing, three dairy, one special, one forestry and eight finishing property comprised the total. The median farm price was $516,000, compared with $680,000 in March and $560,000 in April 2000.

Lifestyle block sales fell to 38 from the 47 recorded in March 2001 and the 46 sales recorded in April 2000. The median lifestyle block price was $155,750, compared with $155,000 in March and $138,500 in April 2000.

Wellington
Seven properties, consisting of one dairy, three finishing and three grazing properties changed hands in the Wellington region during April, compared to one farm transaction in April last year and twelve in March 2001. The median farm price was $1,275,000, compared with $588,500 in March and $805,000 in April 2000.

A total of 37 lifestyle blocks changed hands, fourteen more than the 23 recorded in March 2001 and twelve more than the 25 for April 2000. The median lifestyle block price fell to $165,000 compared to the March figure of $170,000 and the $112,000 recorded in April 2000.

Nelson/Marlborough
Farm sales fell in the Nelson/Marlborough region with 14 sales for April, 15 for March, and twenty sales recorded in April 2000. Six grazing, one finishing, one forestry, two dairy and four horticultural properties made up the farm sales in the region. The median farm price was $557,500, compared with $390,000 in March and $200,000 in April 2000.

Thirty lifestyle blocks sold and the median price was $172,500, compared with $189,000 in March when 29 were sold and $150,000 in April last year when 21 blocks changed hands.

West Coast
Five transactions were recorded on the West Coast during April – compared to nine in March 2001 and one in April 2000.

Five lifestyle blocks sold in the region, three less than March 2001 and four less than April 2000.

Canterbury
A total of 26 farms changed hands in April, compared with 38 in March and 29 in April last year. There were six arable, 12 grazing, six finishing, and two dairy properties sold. The median farm price was $1,100,000, compared with $540,000 in March and $695,000 in April 2000.

Lifestyle block sales fell on a month to month basis, with 73 changing hands for April, compared to 78 in March 2001 and rose on a year to year basis, compared to the 41 sales recorded in April 2000. The median lifestyle block price for the region was $230,000 compared to $170,000 in March and $175,000 in April last year.

Otago
Twenty seven farms were sold in Otago comprising six dairy, two arable, twelve grazing, one High Country Merino and six finishing properties. This compared with four sales in April last year and 18 in March. The median farm price was $510,000, compared with $568,750 in March and $760,000 in April 2000.

Twenty-five lifestyle blocks changed hands in the region, 23 less than March 2001 and four more than in April 2000. The median lifestyle block price was $143,000, up on March’s $137,500 and down on the $177,000 recorded in April 2000.

Southland
The median farm price in Southland was $764,000, compared with $620,000 in March and $585,000 in April 2000.Fifty-four farms changed hands compared to 28 in March and 24 in April last year. There were 33 finishing, 12 dairy, three special and six grazing properties sold.

Lifestyle block sales rose from 18 in March to 22 in April and compared to 8 in April 2000. The median lifestyle block price was $118,500, up on both March’s $107,750 and $155,000 in April 2000.

MEDIAN PRICE AND SALES BY DISTRICT – APRIL 2001

All Farms
All Lifestyle
No. of Sales Median No. of Sales Median
Northland 19 700,000 42 205,000
Auckland 19 880,000 117 315,000
Waikato 64 1,000,000 57 225,000
Bay of Plenty 19 1,100,000 30 212,500
Gisborne 7 900,000 6 280750
Hawkes Bay 9 290,000 18 163500
Taranaki 15 750,000 14 185050
Manawatu/
Wanganui 30 516,000 38 155750
Wellington 7 1,275,000 37 165000
Nelson/
Marlborough 14 557,500 30 172500
West Coast 5 430,000 5 141,000
Canterbury 26 1,100,000 73 230,000
Otago 27 510,000 25 143,000
Southland 54 764,000 22 118500
TOTAL 315 $765,000 514 $212,000

MEDIAN PRICE AND SALES BY DISTRICT – APRIL 2001
Arable Dairy Fattening Forestry Grazing Horticultural Sth Island High Country Special

Northland - 5 6 - 8 - - -
Auckland - 5 - - 9 3 - 2
Waikato - 34 3 1 25 1 - -
Bay of Plenty - 4 - - 1 14 - -
Gisborne - - - - 5 2 - -
Hawkes Bay - - 2 - 1 5 - 1
Taranaki - 8 1 - 5 1 - -
Manawatu/
Wanganui - 3 8 1 17 - - 1
Wellington - 1 3 - 3 - - -
Nelson / Marlborough - 2 1 1 6 4 - -
West Coast - 3 - - 2 - - -
Canterbury 6 2 6 - 12 - - -
Otago 2 6 6 - 12 - 1 -
Southland - 12 33 - 6 - - 3
TOTAL 8 85 69 3 112 30 1 7

FARMS - SALES AND MEDIAN PRICE BY DISTRICT
APRIL 2000 MARCH 2001 APRIL 2001
#. of Sales Median #. of Sales Median #. of Sales Median

Northland 19 230,000 16 322,931 19 700,000
Auckland 8 330,000 12 672,500 19 880,000
Waikato 22 875,000 41 1,100,000 64 1,000,000
Bay of Plenty 19 625,000 24 715,000 19 1,100,000
Gisborne 1 1,000,000 8 336,000 7 900,000
Hawke’s Bay 5 340,000 9 574,062 9 290,000
Taranaki 20 550,000 12 499,259 15 750,000
Manawatu/
Wanganui 15 560,000 23 680,000 30 516,000
Wellington 1 805,000 12 588,500 7 1,275,000
Nelson/
Marlborough 11 200,000 15 390,000 14 557,500
West Coast 1 495,000 9 840,000 5 430,000
Canterbury 29 695,000 38 540,000 26 1,100,000
Otago 4 760,000 18 568,750 27 510,000
Southland 24 585,000 28 620,000 54 764,000

TOTAL 179 $580,000 265 $650,000 315 $765,000

APRIL 1998 APRIL 1999
# of Sales Median # of Sales Median

Northland 11 285,000 12 517,500
Auckland 16 795,500 9 770,000
Waikato 34 862,500 26 865,000
Bay of Plenty 10 372,500 11 447,000
Gisborne 2 233,750 4 357,500
Hawke’s Bay 6 315,000 10 395,000
Taranaki 19 530,000 5 660,000
Manawatu/
Wanganui 20 440,000 22 451,250
Wellington 5 260,000 4 220,750
Nelson/
Marlborough 10 450,000 17 310,000
West Coast - - 1 170000
Canterbury 12 258,500 13 535,000
Otago 10 203,750 12 346,250
Southland 26 272,500 27 502,255

TOTAL 181 $450,000 173 $482,000

LIFESTYLE BLOCKS - SALES AND MEDIAN PRICE BY DISTRICT

APRIL 2000 MARCH 2001 APRIL 2001
# of Sales Median # of Sales Median # of Sales Median

Northland 34 127,250 42 159,000 42 205,000
Auckland 80 319,500 106 317,500 117 315,000
Waikato 29 185,000 51 215,500 57 225,000
Bay of Plenty 33 225,000 50 270,000 30 212,500
Gisborne 7 66,500 9 226,000 6 280,750
Hawke’s Bay 16 267,500 28 144,500 18 163,500
Taranaki 5 170,200 18 182,500 14 185,050
Manawatu/
Wanganui 46 138,500 47 155,000 38 155,750
Wellington 25 112,000 23 170,000 37 165,000
Nelson/
Marlborough 21 150,000 29 189,000 30 172,500
West Coast 9 40,000 6 125,000 5 141,000
Canterbury 41 175,000 78 170,000 73 230,000
Otago 21 177,000 48 137,500 25 143,000
Southland 8 155,000 18 107,750 22 118,500

TOTAL 375 $200,000 553 $195,000 514 $212,000

APRIL 1998 APRIL 1999
# of Sales Median # of Sales Median

Northland 41 135,000 39 130,000
Auckland 72 283,500 78 327,500
Waikato 59 195,000 48 180,000
Bay of Plenty 42 187,500 46 200,500
Gisborne 2 275,000 6 109,500
Hawke’s Bay 14 193,000 15 138,000
Taranaki 11 168,000 7 155,000
Manawatu/
Wanganui 28 100,000 64 95,500
Wellington 22 125,250 30 166,000
Nelson/
Marlborough 13 225,000 27 165,000
West Coast 5 63,000 2 86,500
Canterbury 55 147,000 49 174,000
Otago 13 105,000 27 145,000
Southland 12 116,722 9 117,000

TOTAL 389 $180,000 447 $175,000

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