Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 125 fewer farm sales (-24.0%)
for the three months ended January 2018 than for the three months ended January 2017. Overall, there were 396 farm sales
in the three months ended January 2018, compared to 394 farm sales for the three months ended December 2017 (+0.5%), and
521 farm sales for the three months ended January 2017. 1,527 farms were sold in the year to January 2018, 12.7% fewer
than were sold in the year to January 2017, with 20.1% more finishing farms, 28.2% more dairy farms and 31.9% fewer
grazing and 38.0% fewer arable farms sold over the same period.
The median price per hectare for all farms sold in the three months to January 2018 was $28,257 compared to $27,058
recorded for three months ended January 2017 (+4.4%). The median price per hectare fell 3.4% compared to December.
The REINZ All Farm Price Index fell 0.5% in the three months to January 2018 compared to the three months to December
2017. Compared to January 2017 the REINZ All Farm Price Index rose 5.8%. The REINZ All Farm Price Index adjusts for
differences in farm size, location and farming type, unlike the median price per hectare, which does not adjust for
these factors.
Eleven of 14 regions recorded decreases in the number of farm sales for the three months ended January 2018 compared to
the three months ended January 2017. Otago recorded the most substantial decline in sales (-26 sales) followed by
Northland (-25 sales). Gisborne (+5), Nelson (+2) and Southland (+2) were the three regions to increase the number of
farm sales compared to January 2017. Compared to the three months ended December 2017, six regions recorded a decrease
in sales with the biggest drop being in Bay of Plenty (-10 sales).
Brian Peacocke, Rural Spokesman, at REINZ says: “Sales figures for the 3 month period ending January 2018 are reasonably
consistent compared to the previous 3 month period, albeit significantly lower than the equivalent periods in 2016 and
2017.
“The grazing category (-32%) and the arable category (-40%) reflect the greatest reduction in volumes as opposed to
steadier numbers for the dairy, finishing and horticulture sectors,” he continues.
“Widespread rain during January has alleviated the feed supply situation throughout much of the country, however, parts
of Otago and Southland were amongst those areas less fortunate,” points out Peacocke
“Whilst the benefit has been widespread, the market remains relatively constrained, particularly in the dairy sector
where the Dairy Farm Price Index records an easing in price for the last 12 months of 8.9%, this being in strong
contrast to the All Farm Price Index which showed an increase of 5.8% over the period,” he concludes.
Points of Interest around New Zealand include:
•Northland – a quieter period with limited listings; purchasers are being very selective but good quality properties are drawing a
good response; marginal dairy units being considered for beef; strong demand in the far north for land for planting
avocados, albeit water consents for such plantings are a constraint
•Waikato – Farmers’ confidence is improving with good rain and a steady payout; listings are currently slower, and purchasers
constrained and careful; good properties continue to sell well, with no demand for lower quality farms; dairy farm
prices are down 10% plus; a quieter post-holiday period
•Bay of Plenty/Rotorua – a similar situation to the Waikato region with reduced activity, even in the horticultural sector where sales were
down by 50% on the previous two months
•Taranaki – a busy January with solid sales of dairy units, often as a result of pre-Christmas auction and tender programmes that
did not sell at the time; very few top farms available and prices for 2nd and 3rd tier properties are down 10% - 15%;
listings currently short; quality labour in dairy sector being sought out strongly
•Hawke’s Bay/Manawatu – solid activity on good finishing and grazing properties throughout the central region with a strong focus on quality
units; minimal activity on dairy
•Wairarapa – good demand during January with successful outcomes on sheep & beef units and runoff-type Wellington properties; dairy farms slow
•Nelson/Marlborough/West Coast – very quiet in the upper South Island with minimal sales activity during the period
•Canterbury – reasonable activity on finishing units but overall, a constrained market with a medium level of listings and reduced
number of buyers; climatic conditions have suppressed activity in the arable and vegetable growing sectors; purchasers
being very selective with reports of bank advice impacting on prices
•Otago – a good run of sales of finishing and grazing properties but climatic conditions have had a considerable impact on the
region
•Southland – the combination of holidays and dry weather reduced market activity in January, although sales continued in the
dairy, finishing and grazing sectors; the outlay for capital stock and the need for higher equity is keeping the market
for sheep and beef properties sluggish; mycoplasma bovis is creating major concerns surrounding movements of dairy cows
and replacement heifers, an issue that has the potential to impact negatively on the rural sector throughout the
country.
Grazing farms accounted for the largest number of sales with a 29% share of all sales over the three months to January
2018, Finishing farms accounted for 25%, Dairy properties accounted for 24%, and Horticulture properties accounted for
12% of all sales. These four property types accounted for 90% of all sales during the three months ended January 2018.
Dairy Farms
For the three months ended January 2018, the median sales price per hectare for dairy farms was $37,235 (96 properties),
compared to $40,484 for the three months ended December 2017 (79 properties), and $44,322 (94 properties) for the three
months ended January 2017. The median price per hectare for dairy farms has decreased 16.0% over the past 12 months. The
median dairy farm size for the three months ended January 2018 was 100 hectares.
On a price per kilo of milk solids basis, the median sales price was $36.91 per kg of milk solids for the three months
ended January 2018, compared to $36.67 per kg of milk solids for the three months ended December 2017 (+0.7%), and
$39.75 per kg of milk solids for the three months ended January 2017 (-7.1%).
The REINZ Dairy Farm Price Index rose 1.3% in the three months to January 2018 compared to the three months to December
2017. Compared to January 2017, the REINZ Dairy Farm Price Index fell 8.9%. The REINZ Dairy Farm Price Index adjusts for
differences in farm size and location compared to the median price per hectare, which does not adjust for these factors.
Finishing Farms
For the three months ended January 2018, the median sale price per hectare for finishing farms was $30,328 (100
properties), compared to $32,000 for the three months ended December 2017 (97 properties), and $28,268 (136 properties)
for the three months ended January 2017. The median price per hectare for finishing farms has risen 7.3% over the past
12 months. The median finishing farm size for the three months ended January 2018 was 42 hectares.
Grazing Farms
For the three months ended January 2018, the median sales price per hectare for grazing farms was $11,828 (113
properties) compared to $11,937 for the three months ended December 2017 (110 properties) and $11,102 (166 properties)
for the three months ended January 2017. The median price per hectare for grazing farms has risen 6.5% over the past 12
months. The median grazing farm size for the three months ended January 2018 was 139 hectares.
Horticulture Farms
For the three months ended January 2018, the median sales price per hectare for horticulture farms was $205,807 (47
properties) compared to $242,988 (58 properties) for the three months ended December 2017 and $204,281 (53 properties)
for the three months ended January 2017. The median price per hectare for horticulture farms has risen 0.7% over the
past 12 months. The median horticulture farm size for the three months ended January 2018 was eight hectares.
ENDS
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.