Rural Market Enters Busy Period

FOR IMMEDIATE RELEASE

News Release 14 November 2008

Rural Market Enters Busy Period

The rural real estate market is moving into a busy period with sales figures recorded in October giving an early indication of a market that is still establishing itself according to the Real Estate Institute of New Zealand (REINZ).

Commenting on the October figures released today, REINZ National Councillor and rural spokesperson Peter McDonald said the signs point to a similar market as last year and in some cases, particularly dairy, even stronger.

“There have been plenty of enquiries for good properties. The only limiting factor is the availability of finance.”

Mr McDonald said that while farmers had no problems with budgets, a shortage of borrowing funds was having an impact on certain kinds of sales.

“We’re seeing a lot more offers made conditional on finance and that’s not possible in an auction situation where funds need to be immediately available.”

Nevertheless, the median sale price for farms in the three months to October New Zealand-wide was $1,500,000 compared with $1,305,000 in August - October 2007 and $930,000 in the corresponding period in 2006. Turnover was down however, with the number of farms sold in the three months to October 2008 down to 390 compared with 582 in the same period in 2007 and 470 in 2006.

In the month of October, the average price per hectare for dairy farms was $42,057 compared with $34,900 in September. This is also well up on the $36,246 average price per hectare for dairy farms in October 2007 and $34,188 in October 2006. Fifteen dairy farms were sold in October compared with 13 in September and 25 in October 2007.

The average price for milk solids dairy farms in October was $62.

In other farming categories, finishing farms remained steady with 14 sales at an average price per hectare of $18,190 in October compared with 11 sales for an average price of $18,352 per hectare in September.

The lifestyle property market continues to hold well and has been reasonably active, Mr McDonald said.

“Lifestyle farm sales are maintaining their hold where they have been for the last three or four months both in numbers of sales and median values.”

In the three months to October, there were 1054 lifestyle blocks sold with a median sale price of $425,278. This compares with 1071 sales at a median price of $435,000 in the three months to September 2008.

ENDS

REINZ_Rural_Market_Report_Stats_October_2008.pdf

Real Estate Institute of New Zealand

For more real estate information and market trends data, visit www.reinz.co.nz . For New Zealand's most comprehensive range of listings for residential, lifestyle, rural, commercial, investment and rental properties, visit www.realestate.co.nz - REINZ's official property directory website.

Explanatory Note:
The information provided by the Real Estate Institute in relation to the rural real estate market Regional Highlights covers a three month period. Therefore references to October results refer to the period from 1 August – 31 October and references to September refer to the period from 1 July – 30 September.

For more real estate information and market trends data, visit www.reinz.co.nz . For New Zealand's most comprehensive range of listings for residential, lifestyle, rural, commercial, investment and rental properties, visit www.realestate.co.nz - REINZ's official property directory website.

Rural Regional Highlights – October 2008
Northland
The median farm price in Northland dipped to $950,000 in October, from $1,077,500 in September (October 2007: $880,000). 29 farms sold (September 2008: 30; October 2007:38). The 29 farms sold consisted of 18 grazing, six horticulture, three dairy, one each finishing and arable). The median price for a lifestyle block increased to $399,000 in October, from $375,000 in September (October 2007: $310,000). 85 lifestyle blocks sold during the month (September 2008: 90; October 2007: 147).

Auckland
The median farm price in Auckland rose to $955,000 in October (September 2008: $850,000; October 2007: $1,450,000). 22 farms (17 grazing, three horticulture and two dairy) sold (September 2008: 16; October 2007: 35).

The number of lifestyle blocks sold increased to 137 in October. (September 2008: 128; October 2007: 306). The median price reached $766,100 in October, up slightly from $763,750 in September (October 2007: $754,150).

Waikato
46 farms (33 grazing, eight dairy, two each arable and finishing and one forestry) sold in October, up from the 42 sold in September (October 2007: 47). The median price was down at $2,475,000 from $2,540,000 in September (October 2007: $1,450,000).

116 lifestyle blocks sold in October, down on the 122 sold in September. The median price eased back to $454,250 from $457,250 in September. In October 2007, 219 lifestyle blocks sold with a median price of $440,000.

Bay of Plenty
The median price for a farm dipped to $1,200,000 in October (September 2008: $1,312,500; October 2007: $1,000,000). 29 farms (15 horticulture, nine grazing, four forestry and one dairy) sold in October, down one on the 30 sold in September (October 2007:32).

52 lifestyle blocks sold in October (September 2008:55; October 2007:115). The median price dropped to $525,500 from September’s $630,000. (October 2007: $515,000).

Gisborne
Six farms (three grazing, two horticulture and one finishing) sold in October (September 2008: two; October 2007: 11). The median price increased to $1,045,000 in October, from $983,375 in September (October 2007: $1,650,000).

Lifestyle block sales were down one with 17 sold (September 2008: 18; October 2007:14). The median price increased to $470,000 from $467,500 in September (October 2007: $412,500).

Hawkes Bay
The median farm price dropped to $1,070,000 in October, from $1,306,000 in September (October 2007: $1,198,000). Nine farms sold (September 2008:16; October 2007: 20) consisting of six grazing, two finishing and one horticulture.

37 lifestyle blocks sold in October, down from on the 48 sold in September. The median price jumped to $441,000 from $420,000 in September. In October 2007, 54 lifestyle blocks sold with a median sale price of $456,750.

Taranaki
The median farm price in Taranaki increased to $1,475,000 in October, from $1,160,000 in September (October 2007: $1,450,000). 22 farms (15 grazing, three each finishing and dairy and one horticulture) sold in October, down one on the 23 sold in September (October 2007:20).

36 lifestyle blocks sold in October (September 2008:42; October 2007: 68). The median price dipped to $384,000 in October (September 2008: $410,000; October 2007: $391,500).

Manawatu/Wanganui
31 farms (24 grazing, three finishing, two each dairy and arable) sold in October (September 2008: 42; October 2007: 41). The median price was down at $1,180,000 from $1,410,000 in October (October 2007: $1,136,000).

The median price for a lifestyle block was down at $315,000 in October (September 2008: $327,000; October 2007: $296,500). In total 119 lifestyle blocks sold, up on the 107 sold in September (October 2007: 134).

Wellington
The median price for a Wellington farm dipped to $1,950,000 in October, down from $2,475,000 in September (October 2007: $1,410,000). Nine farms (eight grazing and one arable) sold in October, up one from the eight sold in September (October 2007: 13).

52 lifestyle blocks sold in October (September 2008: 51; October 2007:112). The median price rose to $412,500 from $370,000 in September (October 2007: $382,500).

Nelson/Marlborough
The median farm price dropped to $600,000 in October, from $971,500 in September (October 2007: $755,000). In total, 17 farms (seven grazing, three forestry, two each arable, dairy and horticulture and one special) sold, down one from the 18 sold in September, and down on the 29 sold in October 2007.

57 lifestyle blocks sold in October, a decrease on the 59 sold in September 2008. (October 2007: 85). The median price jumped to $480,000 from $437,000 in September (October 2007: $455,000).

West Coast
Eight farms (five dairy and one each finishing, grazing and horticulture) sold in October, down on the 12 farms sold in September (October 2007: 11). The median price was steady at $2,526,725 (September 2008: $2,526,725; October 2007: $850,000).

The median price for a lifestyle block rose to $200,000 in October, from $150,000 in September (October 2007: $158,750). 23 lifestyle blocks sold in October, up on the 21 sold in September (October 2007: 18).

Canterbury
66 farms (32 grazing, 13 special, eight arable, six finishing, five dairy and two forestry) sold in October, down on the 79 sold in September (October 2007: 108). The median price rose to $2,137,560 from $1,800,000 in September and $1,525,000 in October last year.

194 lifestyle blocks sold, compared with 199 sold in September. The median price decreased to $430,000 from $450,000 in September. In October 2007, 265 lifestyle blocks sold with a median price of $366,000.

Otago
The median farm price dropped to $1,830,650 in October, down from $2,225,000 in September (October 2007: $1,330,000). 30 farms sold (September 2008: 40; October 2007: 65). The farms sold consisted of 11 each finishing and grazing, four dairy, two special, and one each, arable and horticulture.
70 lifestyle blocks sold in October (September 2008: 63; October 2007: 69). The median price fell to $317,500 from $360,000 in September and $450,000 in October 2007.

Southland
66 farms (37 grazing, 12 dairy, ten finishing, four special, two arable and one forestry) sold in October, down on the 72 sold in September 2008 (October2007: 112). The median price fell to $1,750,000 in October from $2,200,000 in September (October 2007: $1,777,500).

59 lifestyle blocks sold in October, down from the 68 sold in September. The median price also decreased to $297,000 from $313,000 in September. In October 2007, 66 lifestyle blocks sold with a median price of $250,000.

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