Rural property values strengthening

NEWS RELEASE 24 AUGUST, 2001

Rural property values strengthening

Property values continue to strengthen as the national median sales price remains consistent with last month despite a slight easing in the national sales volume, according to Mr Murray Cleland, rural spokesperson for the Real Estate Institute of New Zealand.

Mr Cleland said today that while the national sales volume has eased from that recorded in June 2001, the fact that the national median sales price had not eased indicated higher values for individual properties.

Mr Cleland said, “Farm values are not only holding firm, but appear to be strengthening, while yet again the total number of transactions and national median sales price are well up on the same month last year. The confidence shown by rural New Zealand over the last eighteen months is proving well placed as the market shows no signs of stopping its steady improvement.”

According to statistics released today by the Institute, the national sales volume for July 2001 has risen over July 2000 and remained consistent with June 2001, while the national median sales price has eased from last month but is strongly improved from last year.

The national sales volume for July was 243, compared to the June sales volume of 277 and the July 2000 volume of 149.

The national median sale price for June and July 2001 was $510,000, compared to the July 2000 median of $430,000.

Both sales and values in the lifestyle block market firmed on year-to-year and month-to-month comparison.

Statistics for July reported 503 transactions at a median sales price of $210,000, compared to 447 sales in June at $200,000 and 430 in July 2000 at $196,850.

The demand for dairy properties eased on a month-to-month basis but improved on year-to-year comparison, with 34 properties changing hands during July, compared to 51 in June 2001 and 23 in July 2000.

The July 2001 median sale price for dairy properties of $1,250,000 was up on both the $1,218,650 recorded in July 2000, and the $1,120,000 recorded in June 2001.

The national median sale price has firmed by 18.6 per cent from July 2000 and all sectors bar two have recorded an improvement on a year ago, the two that eased were forestry properties, easing 68.86 per cent; and High Country Merino, where no comparison is possible due to nil sales recorded in July 2001.

Those sectors whose median price has increased from July 2000 include horticultural property, improved by 34.95 per cent; dairy property, increasing by 11.6 per cent; arable property, increasing by 56.07 per cent; and special property, increasing by 50.36 per cent.

The national arable property median sale price was up on both a year to year and month to month basis, from $802,500 in July 2000 and $463,000 in June to $1,252,500 in the latest period, while sales rose to six from the two recorded in July 2000, but eased on the thirteen sales recorded in June 2001.

Horticultural property sales eased on a year-to-year basis and firmed on month-to-month comparison, with 27 sales in July 2001 compared to 30 sales in July 2000 and 25 sales in June 2001. The median price rose from last year but eased from last month, from $287,500 in July 2000 to $388,000 in the latest period, and $440,000 in June 2001.

Finishing property sales firmed on a year-to-year basis and eased on month-to-month comparison, with 50 sales in July 2001 compared to 35 sales in July 2000 and 62 sales in June 2001. The median price rose from last year and last month, from $480,000 in July 2000 to $605,000 in the latest period, and $462,500 in June 2001.

One hundred and sixteen grazing properties sold in July, down on the 118 sales in June but well up on the 43 recorded in July 2000. The median sale price was up from last year but down from last month, from $315,000 in July 2000 and $435,000 in June 2001, to the $378,750 recorded in July 2001.

-ENDS-

For further information contact:
Mr Murray Cleland, REINZ Councillor Phone: (025) 950 445
Issued by Weber Shandwick Worldwide Phone: (025) 230 5768

Regional highlights:

Northland
Fourteen farm sales were recorded in Northland in July, equal to June and four more than July 2000. Eight grazing, one horticultural, one finishing and four dairy properties made up the total. The median farm price was $297,500, compared with $330,000 in June and $510,000 in July 2000.

A total of 26 lifestyle block sales were recorded for July, four less than June and 14 less than the 40 sold in July 2000. The median lifestyle block price was $129,000, down on both June’s $142,500 and the $177,750 recorded in July 2000.

Auckland
Fifteen farms sold in the Auckland region in July, consistent with June 2001 and four more than July 2000. Sales comprised one dairy, one finishing, two horticultural, and eleven grazing properties. The median farm price was $535,000, compared with $460,000 in June and $362,000 in July 2000.

Sales of lifestyle blocks rose on both month-to-month and year-to-year comparison with 106 sales recorded, compared with 92 in June 2001 and 83 in July 2000. The median lifestyle block price was $347,500, compared with $336,250 in June and $295,000 in July 2000.

Waikato
The 20 farms sold in the Waikato were twelve more than July last year and five less than the sales recorded for June. The sales comprised nine grazing, five dairy and five finishing and one special property. The median farm price was $664,000, compared with $725,000 in June and $661,000 in July 2000.

Fifty-four lifestyle blocks sold during July, compared to 45 in July 2000, and 34 in June. The median lifestyle block price was $202,500, compared with $200,500 in June and $210,000 in July last year.

Bay of Plenty
Fourteen farms were sold, fourteen less than in June 2001 and one less than in July last year. Eight horticultural, one dairy, one special and four grazing properties made up the total. The median farm price was $392,500, compared with $634,000 in June and $390,000 in July 2000.

Forty-seven lifestyle blocks were sold, six more than June and 22 more than July 2000. The median lifestyle block price was $287,500 for July, more than both the $235,000 recorded for June and the $195,000 in July 2000.

Gisborne
Eight properties changed hands in Gisborne during July, three more than in both June 2001 and July of last year. The median farm price was $536,000, compared with $340,000 in June 2001 and $700,000 twelve months ago.

Eight lifestyle blocks changed hands in the region, six more less than in June and three more than the same month last year. The median lifestyle block price was $159,000, compared with $105,000 in June and $78,000 last July.

Hawkes Bay
Fourteen farm settlements took place during July, eight more than June 2001 and two more than in July last year. Two grazing, one arable, one dairy, three finishing and seven horticultural properties comprised the total. The median farm price was $491,000, compared with $451,500 in June and $328,500 in July 2000.

Lifestyle block sales rose to 33 in July from 15 in June and the 22 sales in July last year. The median lifestyle block price was $165,000, compared with $270,000 in June and $224,000 last July.

Taranaki
Thirty-four farms changed hands in Taranaki compared with six in both June 2001 and July 2000. Twenty-one grazing, one special, and twelve dairy properties comprised the total farm sales. The median farm price was $533,000, compared with $160,000 in June and $333,750 in July 2000.

Six lifestyle blocks changed hands in the region, two more than June and nine more than July 2000. The lifestyle block median price was $162,500, compared with $159,500 last month and $162,000 last July.

Manawatu/Wanganui
Farm sales remained consistent with last month at 29 for June and July 2001, and compared to 12 sales in July 2000. Fifteen grazing, one dairy, one forestry, three horticultural, two special and seven finishing properties comprised the total. The median farm price was $307,000, compared with $550,000 in June and $687,500 in July 2000.

Lifestyle block sales fell to 50 from the 51 recorded in June 2001 and rose on the 47 sales recorded in July 2000. The median lifestyle block price was $132,000, compared with $160,000 in June and $120,000 in July 2000.

Wellington
Three properties, consisting of one finishing and two grazing properties changed hands in the Wellington region during July, compared to one farm transaction in July last year and eleven in June 2001. The median farm price was $510,000, compared with $353,000 in June and $353,000 in July 2000.

A total of 18 lifestyle blocks changed hands, twenty less than the 38 recorded in June 2001 and ten lessre than the 28 for July 2000. The median lifestyle block price fell to $133,000 compared to the June figure of $180,250 and the $188,000 recorded in July 2000.

Nelson/Marlborough
Farm sales fell on a year to year basis in the Nelson/Marlborough region with six sales for July, eleven for June, and thirteen sales recorded in July 2000. Four grazing, one finishing and one horticultural property made up the farm sales in the region. The median farm price was $307,000, compared with $550,000 in June and $687,500 in July 2000.

Twenty-nine lifestyle blocks sold and the median price was $225,000, compared with $196,000 in June when 23 were sold and $231,445 in July last year when 25 blocks changed hands.

West Coast
Two finishing and one special property changed hands on the West Coast during July – compared to three farm transactions in June 2001 and four in July 2000.

Eight lifestyle blocks sold in the region, four more than June 2001 and one less than July 2000.

Canterbury
A total of 29 farms changed hands in July, compared with 43 in June and 12 in July last year. There were two special, five arable, 18 grazing, and four finishing properties sold. The median farm price was $575,000, compared with $650,000 in June and $496,000 in July 2000.

Lifestyle block sales rose on a month-to-month basis, with 61 changing hands for July, compared to 60 in June 2001 and rose on a year to year basis, compared to the 55 sales recorded in July 2000. The median lifestyle block price for the region was $237,500 compared to $198,625 in June and $170,000 in July last year.

Otago
Twelve farms were sold in Otago comprising two horticultural, five grazing, one special, and four finishing properties. This compared with seventeen sales in July last year and 32 in June. The median farm price was $445,000, compared with $332,500 in June and $380,000 in July 2000.

Twenty-seven lifestyle blocks changed hands in the region, nine more than June 2001 and three more than in July 2000. The median lifestyle block price was $158,000, up on June’s $94,000 and down on the $251,500 recorded in July 2000.

Southland
The median farm price in Southland was $871,431, compared with $480,000 in June and $480,000 in July 2000.Fourty-two farms changed hands compared to 49 in June and 23 in July last year. There were 21 finishing, nine dairy, and 12 grazing properties sold.

Lifestyle block sales fell from 27 in June to 20 in July and compared to 15 in July 2000. The median lifestyle block price was $117,250, up on June’s $115,000 and down on the $123,000 recorded in July 2000.

NUMBER OF SALES AND MEDIAN SALES PRICE
BY DISTRICT – JULY 2001

All Farms
All Lifestyle
No. of Sales Median No. of Sales Median
Northland 14 297,500 26 129,000
Auckland 15 535,000 106 347,500
Waikato 20 664,000 54 202,500
Bay of Plenty 14 392,500 47 287,500
Gisborne 8 536,000 8 159,000
Hawkes Bay 14 491,000 33 165,000
Taranaki 34 533,000 16 162,500
Manawatu/
Wanganui 29 307,000 50 132,000
Wellington 3 510,000 18 133,000
Nelson/
Marlborough 6 387,500 29 225,000
West Coast 3 1,000,000 8 136,625
Canterbury 29 575,000 61 237,500
Otago 12 455,000 27 158,000
Southland 42 871,431 20 117,250

TOTAL 243 $510,000 503 $210,000

NUMBER OF SALES BY FARM TYPE – JULY 2001

Arable Dairy Fattening Forestry Grazing Horticultural Sth Island High Country Special

Northland - 4 1 - 8 1 - -
Auckland - 1 1 - 11 2 - -
Waikato - 5 5 - 9 - - 1
Bay of Plenty - 1 - - 4 8 - 1
Gisborne - - - - 5 3 - -
Hawkes Bay 1 1 3 - 2 7 - -
Taranaki - 12 - - 21 - - 1
Manawatu/
Wanganui - 1 7 1 15 3 - 2
Wellington - - 1 - 2 - - -
Nelson / Marlborough - - 1 - 4 1 - -
West Coast - - 2 - - - - 1
Canterbury 5 - 4 - 18 - - 2
Otago - - 4 - 5 2 - 1
Southland - 9 21 - 12 - - -

TOTAL 6 34 50 1 116 27 - 9

FARMS - SALES AND MEDIAN PRICE BY DISTRICT
JULY 2000 JUNE 2001 JULY 2001
#. of Sales Median #. of Sales Median #. of Sales Median

Northland 10 510,000 14 330,000 14 297,500
Auckland 11 362,000 15 460,000 15 535,000
Waikato 8 661,000 25 725,000 20 664,000
Bay of Plenty 15 390,000 28 634,000 14 392,500
Gisborne 5 700,000 5 340,000 8 536,000
Hawke’s Bay 12 328,500 6 451,500 14 491,000
Taranaki 6 333,750 6 160,000 34 533,000
Manawatu/
Wanganui 12 687,500 29 550,000 29 307,000
Wellington 1 353,000 11 353,000 3 510,000
Nelson/
Marlborough 13 365,000 11 550,000 6 387,500
West Coast 4 83,750 3 530,000 3 1,000,000
Canterbury 12 496,000 43 650,000 29 575,000
Otago 17 380,000 32 332,500 12 455,000
Southland 23 480,000 49 480,000 42 871,431

TOTAL 149 $430,000 277 $510,000 243 $510,000

JULY 1997 JULY 1998 JULY 1999
# of Sales Median # of Sales Median # of Sales Median

Northland 7 350,000 12 462,500 7 367,000
Auckland 9 530,000 6 407,500 14 407,500
Waikato 10 566,000 10 315,500 14 540,000
Bay of Plenty 11 310,000 4 536,500 15 430,000
Gisborne 4 411,000 5 300,000 8 785,000
Hawke’s Bay 9 282,000 4 287,500 12 360,000
Taranaki 6 510,000 6 535,000 3 530,000
Manawatu/
Wanganui 13 235,000 8 402,500 13 280,000
Wellington 1 1,300,000 2 941,000 5 130,200
Nelson/
Marlborough 4 645,000 5 290,000 11 550,000
West Coast - - 1 315000 1 22000
Canterbury 14 338,000 12 518,750 18 345,000
Otago 11 305,000 8 550,000 3 240,000
Southland 12 213,800 10 325,000 19 330,000

TOTAL 111 $340,000 93 $420,000 143 $400,000

LIFESTYLE BLOCKS - SALES AND MEDIAN PRICE BY DISTRICT

JULY 2000 JUNE 2001 JULY 2001
# of Sales Median # of Sales Median # of Sales Median

Northland 40 177,750 30 142,500 26 129,000
Auckland 83 295,000 92 336,250 106 347,500
Waikato 45 210,000 34 200,500 54 202,500
Bay of Plenty 25 195,000 41 235,000 47 287,500
Gisborne 5 78,000 2 105,000 8 159,000
Hawke’s Bay 22 224,000 15 270,000 33 165,000
Taranaki 7 162,000 14 159,500 16 162,500
Manawatu/
Wanganui 47 120,000 51 160,000 50 132,000
Wellington 28 188,000 38 180,250 18 133,000
Nelson/
Marlborough 25 231,445 23 196,000 29 225,000
West Coast 9 122,000 4 80,500 8 136,625
Canterbury 55 170,000 60 198,625 61 237,500
Otago 24 251,500 16 94,000 27 158,000
Southland 15 123,000 27 115,000 20 117,250

TOTAL 430 $196,850 447 $200,000 503 $210,000

JULY 1997 JULY 1998 JULY 1999
# of Sales Median # of Sales Median # of Sales Median

Northland 56 100,000 42 150,000 40 123,500
Auckland 93 315,000 63 320,000 78 295,000
Waikato 43 190,000 45 170,000 49 179,000
Bay of Plenty 45 170,000 20 171,500 32 174,000
Gisborne 6 117,500 4 97,500 2 147,600
Hawke’s Bay 11 162,500 6 127,500 20 239,000
Taranaki 5 185,000 3 100,000 7 120,000
Manawatu/
Wanganui 27 150,000 20 96,500 32 124,000
Wellington 24 132,500 14 149,500 30 175,625
Nelson/
Marlborough 9 260,000 18 222,500 36 202,000
West Coast 4 85,500 9 128,000 3 110,000
Canterbury 50 172,500 49 140,000 68 148,400
Otago 14 139,250 10 95,000 20 171,000
Southland 10 97,500 15 148,000 13 123,000

TOTAL 397 $180,000 318 $170,000 430 $175,000

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