Moderate Rise In Farm Prices And Sales

News Release 15 February 2011

Moderate Rise In Farm Prices And Sales

The median price for a farm is 13.5 percent up on a year ago and there is an increase in the number of sales in the latest Real Estate Institute of New Zealand (REINZ) Rural Market statistics released today.

For the three months to the end of January 2011, the national median farm sale price increased to $1,135,000 from $1,000,000 for the three months to January 2010. At 219, the number of farms sold in the three months is an increase on the 208 in the same period a year ago. Grazing properties accounted for the largest number of sales by farm type, with 92 changing hands throughout the country in the three months to January 2011. There were 46 dairy farm sales, up on the 33 in the same period a year ago.

“There is interest in all classes and categories of rural properties at the moment,” says REINZ rural market spokesman Peter McDonald. “Recent sales have included dairy support blocks, sheep and beef grazing properties, vineyards and other horticultural units.”

“The increase in dairy farm sales in December has not continued into January, traditionally a slow month,” says Peter McDonald. “But a considerable number of dairy properties are currently being marketed by tender or auction throughout the country and demand seems to be growing so we could see significantly more sales in March and April.”

Compared to the three months to the end of January 2010, there have been median price increases over the year from $561,000 to $640,000 in Northland, $612,500 to $890,000 in Manawatu/Wanganui, $907,269 to $1,850,000 in Nelson, $440,000 to $2,725,000 in West Coast, $1,555,000 to $1,815,500 in Canterbury, $730,000 to $1,449,500 in Otago, and from $875,000 to $2,683,068 in Southland. But compared to January 2010, median farm sale prices at the end of last month were down in the Auckland district from $1,085,000 to $827,500, Waikato from $1,600,000 to $1,500,000, Bay of Plenty from $1,175,000 to $867,500, Gisborne from $665,148 to $585,000, Hawkes Bay from $1,175,000 to $1,060,000, Taranaki from $2,800,000 to $2,400,000, and Wellington from $650,000 to $525,000.

Peter McDonald says strong demand is continuing in the lifestyle property market with turnover and prices reasonably steady. The national median selling price for a lifestyle property in the three months to January 2010 was $440,000, slightly down on the median price for the three months to December 2010 of $445,000, and on the median of $455,000 for the same period last year.
But increases in lifestyle properties median prices on those at the end of January 2011 were recorded in Auckland from $720,00 to $741,000, Bay of Plenty from $480,000 to $485,000, Gisborne from $454,810 to $477,500, Hawke’s Bay from $390,000 to $420,500, Taranaki from $351,000 to $364,000, Nelson from $495,000 to $519,300, Canterbury from $450,000 to $506,000 and Southland from $297,000 to $324,000.

A total of 985 lifestyle properties were sold in the three months to January 2011 compared with 1,089 in the three months to December 2010; well up on the 876 sold in the three months to January 2009 but down on the 1,213 sold in the three months to January 2010.

ENDS

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