Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 129 more farm sales (+39.2%)
for the three months ended February 2021 than for the three months ended February 2020. Overall, there were 458 farm
sales in the three months ended February 2021, compared to 517 farm sales for the three months ended January 2021
(-11.4%), and 329 farm sales for the three months ended February 2020.
1,542 farms were sold in the year to February 2021, 23.1% more than were sold in the year to February 2020, with 51.3%
more Dairy farms, 3.1% more Grazing farms, 42.9% more Finishing farms and 30.1% less Arable farms sold over the same
period.
The median price per hectare for all farms sold in the three months to February 2021 was $25,665 compared to $20,569
recorded for three months ended February 2020 (+24.8%). The median price per hectare decreased 0.8% compared to January
2021.
The REINZ All Farm Price Index decreased 1.0% in the three months to February 2021 compared to the three months to
January 2021. Compared to the three months ending February 2020 the REINZ All Farm Price Index rose 7.4%. 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.
Ten of the 14 regions recorded an increase in the number of farm sales for the three months ended February 2021 compared
to the three months ended February 2020, with the most notable being Waikato (+27) and Auckland (+24). Gisborne and
Wellington recorded the most notable decline in sales (-5). Compared to the three months ended January 2021, two regions
recorded an increase in sales, namely Southland and Waikato ( +1).
Brian Peacocke, Rural Spokesman, at REINZ says: “Sales figures for the 3-month period ending February 2021 confirm the
rural market is in good shape with dairy farm sales holding well followed closely by those in the finishing and grazing
sectors.
“Of particular note are the encouraging signals emerging from the world marketplace for dairy produce which in turn is
being translated into an increasing payout to the dairy farmers. The increased cashflow from this sector alone will have
significant benefits for the New Zealand economy.
“Sales of finishing and grazing properties reflect the commitment from those sectors to explore every possibility in the
marketplace in spite of serious supply chain issues, with the resultant increasing demand and sustainability of land
values of properties within those sectors reflecting an underlying and seemingly sustainable degree of confidence.
“Activity is gearing up within the horticulture sector as the kiwifruit industry prepares for a bumper harvest, with the
availability of reefer shipping helping to overcome the difficulties of transportation to the market due to the extreme
shortage of containers.
“Regrettably, with the impact of COVID-19 restricting the availability of labour from off-shore under the Regional
Seasonal Employer (RSE) Scheme, the shortage of labour is having a dramatic impact across the horticultural sector with
considerable amounts of export potential produce not being able to be harvested, the pip fruit industry being a
particular, albeit not isolated, case in point,” he concludes.Activity within the rural market around New Zealand includes the following: -Northland/Auckland - an improved number of dairy farm sales in the Far North District, albeit lower priced, with a steady sprinkling of
finishing and grazing farm sales stretching down into the Whangarei and Kaipara Districts; a healthy number of finishing
farm transactions at strong prices in the lower North particularly in the Rodney DistrictWaikato/King Country - a resurgence in dairy farm sales, predominantly in the Waikato and Waipa districts, backed up by a strong level of
finishing property sales at healthy prices; lighter activity on grazing units throughout the region but dairy support
and finishing units gained solid traction in the Waitomo and Taupo districtsBay of Plenty/Rotorua - a good cross-section of sales in most categories with horticultural properties dominating the Western Bay of Plenty;
Whakatane and Opotiki districts experienced reasonable results compared to a quieter time in the Rotorua district which
had only one finishing block saleGisborne/Hawke’s Bay - strong prices albeit reduced numbers with one smaller finishing block being the feature in the Gisborne district;
acceptable results in the Hawke’s Bay where sales of grazing units dominatedTaranaki - solid prices achieved for dairy and finishing properties in the New Plymouth and South Taranaki districtsWanganui/Manawatu/Tararua - quiet in the northern localities with steady prices paid for a range of finishing and grazing properties in the
Manawatu, Tararua and Horowhenua districtsWairarapa/Wellington - calm conditions prevailed over much of the southern sector with registrable activity only in the grazing and dairy
categoriesNelson/Marlborough - encouraging results in the northern segment of the South Island with finishing properties at steady prices dominating
the other forms of land useCanterbury/West Coast - a good level of activity on finishing and grazing units at solid prices in the Hurunui and Waimakariri districts;
similar results in the Selwyn and Timaru regions but quiet in the Ashburton locality; reasonable activity across the
board on grazing, finishing and dairy support properties on the West CoastOtago - well spread activity in all districts with current prices holding for dairy, finishing and grazing properties; one
standout transaction involved a small pinot noir vineyard at Bannockburn in Central OtagoSouthland - strong activity within the Southland district specifically with healthy prices being paid for a good range of dairy,
finishing and grazing properties.
Finishing farms accounted for the largest number of sales with a 30% share of all sales over the three months to
February 2021, Grazing farms accounted for 30%, Dairy accounted for 20% and Horticulture accounted for 9% of all sales.
These four property types accounted for 89% of all sales during the three months ended February 2021.
Dairy Farms
For the three months ended February 2021, the median sales price per hectare for dairy farms was $33,538 (90
properties), compared to $33,444 (91 properties) for the three months ended January 2021, and $35,142 (50 properties)
for the three months ended February 2020. The median price per hectare for dairy farms has decreased 4.6% over the past
12 months. The median dairy farm size for the three months ended February 2021 was 132 hectares.
On a price per kilo of milk solids basis the median sales price was $35.48 per kg of milk solids for the three months
ended February 2021, compared to $34.78 per kg of milk solids for the three months ended January 2021 (+2.0%), and
$35.29 per kg of milk solids for the three months ended February 2020 (+0.5%).
The REINZ Dairy Farm Price Index rose 1.1% in the three months to February 2021 compared to the three months to January
2021. Compared to February 2020, the REINZ Dairy Farm Price Index rose 5.9%. 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 February 2021, the median sale price per hectare for finishing farms was $35,718 (138
properties), compared to $34,699 (156 properties) for the three months ended January 2021, and $28,911 (80 properties)
for the three months ended February 2020. The median price per hectare for finishing farms has increased 23.5% over the
past 12 months. The median finishing farm size for the three months ended February 2021 was 37 hectares.
Grazing Farms
For the three months ended February 2021, the median sales price per hectare for grazing farms was $11,597 (137
properties), compared to $11,472 (146 properties) for the three months ended January 2021 and $10,090 (112 properties)
for the three months ended February 2020. The median price per hectare for grazing farms has increased 14.9% over the
past 12 months. The median grazing farm size for the three months ended February 2021 was 127 hectares.
Horticulture Farms
For the three months ended February 2021, the median sales price per hectare for horticulture farms was $355,547 (41
properties), compared to $308,960 (53 properties) for the three months ended January 2021 and $243,421 (27 properties)
for the three months ended February 2020. The median price per hectare for horticulture farms has increased 46.1% over
the past 12 months. The median horticulture farm size for the three months ended February 2021 was 6 hectares.