20 June 2018
For immediate release
Steady Volumes at End of Season
Data released today by the Real Estate Institute of NZ (REINZ) shows there were 71 fewer farm sales (-13.8%) for the
three months ended May 2018 than for the three months ended May 2017. Overall, there were 443 farm sales in the three
months ended May 2018, compared to 418 farm sales for the three months ended April 2018 (+6.0%), and 514 farm sales for
the three months ended May 2017. 1,453 farms were sold in the year to May 2018, 18.8% fewer than were sold in the year
to May 2017, with 4.0% more finishing farms, 1.7% fewer dairy farms, 36.3% fewer grazing and 34.3% fewer arable farms
sold over the same period.
The median price per hectare for all farms sold in the three months to May 2018 was $26,219 compared to $27,212 recorded
for three months ended May 2017 (-3.6%). The median price per hectare fell 4.0% compared to April.
The REINZ All Farm Price Index rose 1.2% in the three months to May 2018 compared to the three months to April 2018.
Compared to May 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.
Across the country, 10 of 14 regions recorded decreases in the number of farm sales for the three months ended May 2018
compared to the three months ended May 2017. Northland recorded the most substantial decline in sales (-33 sales)
followed by Otago (-22 sales) and Waikato (-12 sales). Manawatu/Wanganui (+14), West Coast (+9) and Bay of Plenty (+6)
were the top three regions to increase the number of farm sales compared to May 2017. Compared to the three months ended
April 2018, five regions recorded a decrease in sales with the biggest drop being in Auckland (-3 sales).
Brian Peacocke, Rural Spokesman, at REINZ says: “The 2017/2018 farm sales season ended on a good note with sales figures
reflecting a solid degree of confidence, albeit an easing in volumes from an annual perspective.
“The confidence referred to appears to have been carried through into attendance and purchase figures at the recent
National Fieldays at Mystery Creek in the Waikato, reinforced by an improving dairy payout, strong markets for beef and
lamb, and the continuation of lower interest rates which in turn reflect the current low-inflation economy,” he
continues.
“Regretfully, however, the optimism stemming from an extremely benevolent autumn has been dominated by the pervasive
impact of the mycoplasma bovis disease which is having a dramatic financial and social impact on many in the rural
sector. Time will tell if the Ministry of Primary Industries in tandem with other animal health entities and the wider
farming community are to be successful with the current plan to eradicate as opposed to managing this
difficult-to-detect biosecurity invader,” he concludes.
Points of Interest around New Zealand include:
Dairying – a consistent surge of later sales in the Waikato region with some particularly strong results in the eastern areas for
Tatua and special end-use dairy land; quieter in the Upper North; constrained in Taranaki and the lower North Island;
several reasonable outcomes in Canterbury and Southland
Finishing – strong results and values throughout much of the country, with particular success in the Waikato/Bay of Plenty,
Taranaki, Manawatu, Canterbury, Otago and Southland regions
Grazing – again, encouraging results in many districts, including an upturn in the Nelson/Marlborough region, with standout
performances in the Manawatu/Wanganui and Otago provinces
Horticulture – Bay of Plenty again dominated this sector with great consistency in volumes and strong prices, with Hawke’s Bay sales
during May being equal to the better months recorded over the last two years
Arable – patches of activity throughout the main cropping regions of the country with Nelson/Marlborough recording one of its
stronger results for a considerable period of time
Forestry – light activity in general with those few sales recorded being in the Upper North, Taranaki and Southland.
Finishing farms accounted for the largest number of sales with a 33% share of all sales over the three months to May
2018, Grazing farms accounted for 27%, Dairy properties accounted for 17%, and Horticulture properties accounted for 14%
of all sales. These four property types accounted for 90% of all sales during the three months ended May 2018.
Dairy Farms
For the three months ended May 2018, the median sales price per hectare for dairy farms was $35,901 (74 properties),
compared to $36,028 for the three months ended April 2018 (82 properties), and $34,789 (89 properties) for the three
months ended May 2017. The median price per hectare for dairy farms has increased 3.2% over the past 12 months. The
median dairy farm size for the three months ended May 2018 was 96 hectares.
On a price per kilo of milk solids basis, the median sales price was $36.45 per kg of milk solids for the three months
ended May 2018, compared to $37.38 per kg of milk solids for the three months ended April 2018 (-2.5%), and $36.26 per
kg of milk solids for the three months ended May 2017 (+0.5%).
The REINZ Dairy Farm Price Index increased 0.4% in the three months to May 2018 compared to the three months to April
2018. Compared to May 2017, the REINZ Dairy Farm Price Index fell 8.2%. 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 May 2018, the median sale price per hectare for finishing farms was $29,093 (145 properties),
compared to $29,427 for the three months ended April 2018 (134 properties), and $27,141 (157 properties) for the three
months ended May 2017. The median price per hectare for finishing farms has risen 7.2% over the past 12 months. The
median finishing farm size for the three months ended May 2018 was 49 hectares.
Grazing Farms
For the three months ended May 2018, the median sales price per hectare for grazing farms was $10,687 (120 properties)
compared to $10,692 for the three months ended April 2018 (109 properties) and $14,160 (155 properties) for the three
months ended May 2017. The median price per hectare for grazing farms has fallen 24.5% over the past 12 months. The
median grazing farm size for the three months ended May 2018 was 125 hectares.
Horticulture Farms
For the three months ended May 2018, the median sales price per hectare for horticulture farms was $277,842 (60
properties) compared to $278,258 (52 properties) for the three months ended April 2018 and $181,427 (64 properties) for
the three months ended May 2017. The median price per hectare for horticulture farms has risen 53.0% over the past 12
months. The median horticulture farm size for the three months ended May 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.
Editor’s Note:
The information provided by REINZ in relation to the rural real estate market covers the most recently completed
three-month period; thus references to May refer to the period from 1 March 2018 to 31 May 2018.
The REINZ Farm Price Indices have been developed in conjunction with the Reserve Bank of New Zealand. It adjusts sale
prices for property specific factors such as location, size and farm type which can affect the median $/hectare
calculations and provides a more accurate measure of farm price movements. The REINZ Farm Price Indices has been
calculated with a base of 1,000 for the three months ended May 1996. The REINZ Farm Price Indices is best utilised in
assessing percentage changes over various time periods rather than trying to apply changes in the REINZ Farm Price Index
to specific property transactions.