Rural property market continues to shine

NEWS RELEASE 24 OCTOBER, 2001

RURAL PROPERTY MARKET CONTINUES TO SHINE

The rural property market continues to shine as the national median sales price firms from both August 2001 and September 2000, despite a slight easing in the national sales volume on a month to month basis, 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 August 2001, it had firmed from the same period in 2000.

Mr Cleland said, “The big picture is that on year to year comparison the market continues to improve. The median price has firmed by 14.28 per cent on a year-to-year basis, and market activity has increased by approximately 10 percent. The Institute is very pleased to see rural property is holding its own in the face of challenging global issues.”

According to statistics released today by the Institute, the national sales volume for September was 182, compared to the August sales volume of 234 and the September 2000 volume of 169.

The national median sale price for September was $560,000 compared to August at $530,000, and the September 2000 median of $490,000.

Sales in the lifestyle block market firmed on a year-to-year basis and eased on month-to-month comparison while the median price eased from last year and rose on last month.

Statistics for September reported 463 transactions at a median sales price of $192,000, compared to 494 sales in August at $184,000 and 169 in September 2000 at $490,000.

The demand for dairy properties eased on both a month-to-month and year-to-year basis, with 32 properties changing hands during September, compared to 39 in August 2001 and 33 in September 2000.

The September 2001 median sale price for dairy properties of $1,157,500 was down on the $1,400,00 recorded in September 2000, and improved on the $1,094,800 recorded in August 2001.

The national median sale price has firmed by 14.28 per cent from September 2000 and all sectors bar four have firmed from a year ago, including special properties, easing 18.78 per cent; grazing property, easing by 13.53 per cent; dairy property, easing by 17.33 per cent; and horticultural property, easing 18.78 per cent.

Those sectors whose median price has increased from September 2000 include finishing property, improved by 139.86 per cent; forestry property, increasing by 58.82 per cent; and arable property, increasing by 231.49 per cent.

The national arable property median sale price was well up on both a year to year and month to month basis, from $452,500 in September 2000 and $335,000 in August to $1,500,000 in the latest period, while sales rose to nine from the six recorded in September 2000, and fell from the fourteen sales recorded in August 2001.

Horticultural property sales eased on year-to-year comparison but remained consistent with last month, with 23 sales in September and August 2001 compared to 25 sales in September 2000. The median price fell from last year and last month, from $410,500 in September 2000 to $380,000 in the latest period, and $520,000 in August 2001.

Finishing property sales firmed on a year-to-year basis while easing on month-to-month comparison, with 34 sales in September 2001 and 50 in August 2001compared to 31 sales in September 2000. The median price rose from last year and last month, from $425,000 in September 2000 to $1,019,435 in the latest period, and $992,500 in August 2001.

Seventy-four grazing properties sold in September, down on the 100 sales in August but up on the 68 recorded in September 2000. The median sale price was down from last year and up from last month, from $425,000 in September 2000 and $300,000 in August 2001, to the $367,500 recorded in September 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
Eighteen farm sales were recorded in Northland in September, four more than August and eleven more than September 2000. Eight grazing, one finishing, one special, two horticultural, and six dairy properties made up the total. The median farm price was $405,000, compared with $518,500 in August and $435,000 in September 2000.

A total of 29 lifestyle block sales were recorded for September, compared to 59 August and 30 sold in September 2000. The median lifestyle block price was $140,000, down on both August’s $157,500 and the $107,500 recorded in September 2000.

Auckland
Twelve farms sold in the Auckland region in September, consistent with August 2001 and one more than September 2000. Sales comprised three dairy and nine grazing properties. The median farm price was $357,500, compared with $375,000 in August and $540,000 in September 2000.

Sales of lifestyle blocks fell on both a month-to-month and year-to-year comparison with 85 sales recorded, compared with 95 in August 2001 and 88 in September 2000. The median lifestyle block price was $320,000, compared with $332,000 in August and $290,000 in September 2000.

Waikato
The fifteen farms sold in the Waikato were five less than September last year and 21 less than the sales recorded for August. The sales comprised five grazing, nine dairy and one arable property. The median farm price was $828,000, compared with $840,000 in August and $532,500 in September 2000.

Fifty-three lifestyle blocks sold during September, compared to 27 in September 2000, and 48 in August. The median lifestyle block price was $145,000, compared with $190,000 in August and $245,000 in September last year.

Bay of Plenty
Ten farms were sold, five less than in August 2001 and three less than in September last year. Six horticultural and four grazing properties made up the total. The median farm price was $582,500, compared with $660,000 in August and $612,500 in September 2000.

Forty-two lifestyle blocks were sold, eight more than August and ten more than September 2000. The median lifestyle block price was $232,500 for September, less than both the $262,500 recorded for August and the $257,500 in September 2000.

Gisborne
Seven properties changed hands in Gisborne during September, consistent with August 2001 four more than September of last year. The median farm price was $280,000, compared with $290,000 in August 2001 and $880,000 twelve months ago.

Six lifestyle blocks changed hands in the region, one less than in August and one more than the same month last year. The median lifestyle block price was $115,000, compared with $159,000 in August and $152,750 last September.

Hawkes Bay
Thirteen farm settlements took place during September, one less than August 2001 and two more than in September last year. Five grazing, one special, one arable, and six horticultural properties comprised the total. The median farm price was $320,000, compared with $425,000 in August and $270,000 in September 2000.

Lifestyle block sales rose to 27 in September from 24 in August and the 15 sales in September last year. The median lifestyle block price was $235,000, compared with $150,000 in both August 2001 and last September.

Taranaki
Seven farms changed hands in Taranaki, compared with eight in August 2001 and four in September 2000. Three grazing and four dairy properties comprised the total farm sales. The median farm price was $700,000, compared with $395,000 in August and $555,000 in September 2000.

Twelve lifestyle blocks changed hands in the region, one less than August and eight more than September 2000. The lifestyle block median price was $193,000, compared with $110,000 last month and $165,000 last September.

Manawatu/Wanganui
Farm sales were consistent with last month with twelve for both August and September 2001, and compared to nineteen sales in September 2000. Eight grazing, one dairy and three finishing properties comprised the total. The median farm price was $423,500, compared with $240,000 in August and $395,000 in September 2000.

Lifestyle block sales rose to 49 from the 48 recorded in August 2001 and the 37 sales recorded in September 2000. The median lifestyle block price was $140,000, compared with $149,500 in August and $127,000 in September 2000.

Wellington
Four properties, consisting of one forestry and three grazing properties changed hands in the Wellington region during September, compared to two farm transactions in September last year and six in August 2001. The median farm price was $417,500, compared with $530,000 in August and $227,500 in September 2000.

A total of 24 lifestyle blocks changed hands, five more than the 19 recorded in August 2001 and one more than the 23 for September 2000. The median lifestyle block price rose to $158,000 compared to the August figure of $150,000 and the $150,000 recorded in September 2000.

Nelson/Marlborough
Farm sales rose on a month to month basis in the Nelson/Marlborough region with thirteen sales for September, eleven for August, and fourteen sales recorded in September 2000. Eight grazing, two forestry and three horticultural properties made up the farm sales in the region. The median farm price was $580,000, compared with $240,000 in August and $752,500 in September 2000.

Twenty-seven lifestyle blocks sold and the median price was $209,450, compared with $195,000 in August when 24 were sold and $202,000 in September last year when 26 blocks changed hands.

West Coast
Five grazing and one horticultural property changed hands on the West Coast during September – compared to three farm transactions in both August 2001 and September 2000.

Four lifestyle blocks sold in the region, two more than August 2001 and two less than September 2000.

Canterbury
A total of 27 farms changed hands in September, compared with 37 in August and fourteen in September last year. There were four special, one horticultural, two dairy, six arable, nine grazing, and five finishing properties sold. The median farm price was $740,000, compared with $437,000 in August and $467,750 in September 2000.

Lifestyle block sales eased on a month-to-month basis, with 53 changing hands for September, compared to 68 in August 2001 and rose on a year to year basis, compared to the 48 sales recorded in September 2000. The median lifestyle block price for the region was $230,000 compared to $182,500 in August and $142,000 in September last year.

Otago
Thirteen farms were sold in Otago comprising one horticultural, one forestry, one dairy, five grazing and five finishing properties. This compared with seventeen sales in September last year and 23 in August. The median farm price was $777,778, compared with $390,000 in August and $635,000 in September 2000.

Thirty-three lifestyle blocks changed hands in the region, sixteen more than August 2001 and eighteen more than in September 2000. The median lifestyle block price was $200,000, up on August’s $140,000 and the $130,000 recorded in September 2000.

Southland
The median farm price in Southland was $1,040,000 compared with $787,500 in August and $696,000 in September 2000.Twenty-five farms changed hands compared to 36 in August and 32 in September last year. There were nineteen finishing and six dairy properties sold.

Lifestyle block sales remained consistent at 24 for both August and September and compared to 12 in September 2000. The median lifestyle block price was $150,000, up on August’s $92,500 and the $67,500 recorded in September 2000.

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

All Farms
All Lifestyle
No. of Sales Median No. of Sales Median
Northland 18 405,000 29 140,000
Auckland 12 357,500 85 320,000
Waikato 15 828,000 53 145,000
Bay of Plenty 10 582,500 42 232,500
Gisborne 7 280,000 6 173,250
Hawkes Bay 13 320,000 27 235,000
Taranaki 7 700,000 12 193,000
Manawatu/
Wanganui 12 423,500 49 140,000
Wellington 4 417,500 24 158,000
Nelson/
Marlborough 13 580,000 27 209,450
West Coast 6 187,500 4 120,000
Canterbury 27 740,000 53 230,000
Otago 13 777,778 33 200,000
Southland 25 1,040,000 24 150,000

TOTAL 182 $560,000 463 $192,000

NUMBER OF SALES BY FARM TYPE – SEPTEMBER 2001

Arable Dairy Fattening Forestry Grazing Horticultural Sth Island High Country Special

Northland - 6 1 - 8 2 - 1
Auckland - 3 - - 9 - - -
Waikato - 9 1 - 5 - - -
Bay of Plenty - - - - 4 6 - -
Gisborne 2 - - - 2 3 - -
Hawkes Bay 1 - - - 5 6 - 1
Taranaki - 4 - - 3 - - -
Manawatu/
Wanganui - 1 3 - 8 - - -
Wellington - - - 1 3 - - -
Nelson / Marlborough - - - 2 8 3 - -
West Coast - - - - 5 1 - -
Canterbury 6 2 5 - 9 1 - 4
Otago - 1 5 1 5 1 - -
Southland - 6 19 - - - - -

TOTAL 9 32 34 4 74 23 - 6

FARMS - SALES AND MEDIAN PRICE BY DISTRICT
SEPTEMBER 2000 AUGUST 2001 SEPTEMBER 2001
#. of Sales Median #. of Sales Median #. of Sales Median

Northland 7 435,000 14 518,500 18 405,000
Auckland 11 540,000 12 375,000 12 357,500
Waikato 20 532,500 36 840,000 15 828,000
Bay of Plenty 12 612,500 15 660,000 10 582,500
Gisborne 3 880,000 7 290,000 7 280,000
Hawke’s Bay 11 270,000 14 425,000 13 320,000
Taranaki 4 555,000 8 395,000 7 700,000
Manawatu/
Wanganui 19 395,000 12 240,000 12 423,500
Wellington 2 227,500 6 530,000 4 417,500
Nelson/
Marlborough 14 752,500 11 240,000 13 580,000
West Coast 3 68,000 3 650,000 6 187,500
Canterbury 14 467,750 37 437,000 27 740,000
Otago 17 635,000 23 390,000 13 777,778
Southland 32 696,000 36 787,500 25 1,040,000

TOTAL 169 $490,000 234 $530,000 182 $560,000

SEPTEMBER 1997 SEPTEMBER 1998 SEPTEMBER 1999
# of Sales Median # of Sales Median # of Sales Median

Northland 10 515,500 6 357,500 10 216,000
Auckland 12 562,500 3 850,000 8 510,500
Waikato 9 510,000 9 520,000 18 596,230
Bay of Plenty 10 465,000 13 440,000 15 550,000
Gisborne 8 215,750 1 170,000 3 175,000
Hawke’s Bay 5 360,000 7 300,000 5 475,000
Taranaki 13 300,000 7 297,000 4 572,500
Manawatu/
Wanganui 17 225,000 14 321,250 19 220,000
Wellington 1 30,000 5 145,000 4 561,349
Nelson/
Marlborough 15 295,000 14 402,500 8 307,500
West Coast - - - - 3 70300
Canterbury 16 386,000 18 442,160 10 447,500
Otago 8 260,000 5 260,000 17 495,000
Southland 13 300,000 13 270,000 18 310,000

TOTAL 137 $330,000 115 $380,000 142 $411,349

LIFESTYLE BLOCKS - SALES AND MEDIAN PRICE BY DISTRICT

SEPTEMBER 2000 AUGUST 2001 SEPTEMBER 2001
# of Sales Median # of Sales Median # of Sales Median

Northland 30 107,500 59 157,500 29 140,000
Auckland 88 290,000 95 332,000 85 320,000
Waikato 27 245,000 48 190,000 53 145,000
Bay of Plenty 32 257,500 34 262,500 42 232,500
Gisborne 2 104,500 7 115,000 6 173,250
Hawke’s Bay 15 150,000 24 150,000 27 235,000
Taranaki 4 165,000 13 110,000 12 193,000
Manawatu/
Wanganui 37 127,000 48 149,500 49 140,000
Wellington 23 150,000 19 150,000 24 158,000
Nelson/
Marlborough 26 202,000 24 195,000 27 209,450
West Coast 6 159,500 2 131,875 4 120,000
Canterbury 48 142,000 68 183,500 53 230,000
Otago 15 130,000 29 140,000 33 200,000
Southland 12 67,500 24 92,500 24 150,000

TOTAL 365 $186,000 494 $184,000 463 $192,000

SEPTEMBER 1997 SEPTEMBER 1998 SEPTEMBER 1999
# of Sales Median # of Sales Median # of Sales Median

Northland 39 180,000 39 120,000 38 133,750
Auckland 62 310,000 72 279,250 73 308,000
Waikato 43 193,000 44 185,000 48 210,000
Bay of Plenty 38 204,000 26 196,750 31 230,000
Gisborne 8 131,250 9 128,000 5 130,000
Hawke’s Bay 17 170,000 14 127,500 15 145,000
Taranaki 9 142,000 3 185,000 16 119,625
Manawatu/
Wanganui 37 125,005 36 115,000 41 125,000
Wellington 33 130,000 16 122,500 30 147,500
Nelson/
Marlborough 9 280,000 12 228,500 18 222,500
West Coast 9 71,650 2 56,500 5 81,000
Canterbury 56 153,500 47 152,000 47 146,667
Otago 11 182,500 20 137,500 9 170,000
Southland 5 73,000 5 110,000 13 118,200

TOTAL 376 180,000 345 170,000 389 177,000

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