Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were -51 less farm sales (-14.3%)
for the three months ended August 2021 than for the three months ended August 2020. Overall, there were 306 farm sales
in the three months ended August 2021, compared to 364 farm sales for the three months ended July 2021 (-15.9%), and 357
farm sales for the three months ended August 2020.
1,680 farms were sold in the year to August 2021, 37.3% more than were sold in the year to August 2020, with 153.8% more
Dairy farms, 1% more Dairy Support, 24.4% more Grazing farms, 50.8% more Finishing farms and 46.4% less Arable farms
sold over the same period.
The median price per hectare for all farms sold in the three months to August 2021 was $27,250 compared to $25,460
recorded for three months ended August 2020 (+7%). The median price per hectare increased0.3% compared to July 2021.
The REINZ All Farm Price Index increased 0.9% in the three months to August 2021 compared to the three months to July
2021. Compared to the three months ending August 2020 the REINZ All Farm Price Index increased 14.6%. 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.
Four regions recorded an increase in the number of farm sales for the three months ended August 2021 compared to the
three months ended August 2020, with the most notable being Nelson/Marlborough (+11 sales) and Southland (+6 sales).
Manawatu-Wanganui ( -22 sales) and Wellington ( -15 sales) recorded the biggest decreases in sales. Compared to the
three months ended July 2021, no regions recorded an increase in sales.
Brian Peacocke, Rural Spokesman at REINZ says: “Sales figures for the most recent three month period reflect both the
time of the year, when the rural sector is busy with calving and lambing, and the impact of the COVID-19 influenced
lockdown, with both factors impacting on sluggish sales results.
“From a national perspective for the period, arable sales were down 66% from the same time last year; finishing sales
eased 13%; grazing sales dropped 20% and horticulture sales eased 15%. The dairy sector was the bright spot with 29
sales for the three month period, an increase of 262% from the eight sales recorded in the period ending August 2020.
“Given the eventual freeing up of the lockdown however, prospects for the rural sector look bright: -The dairy payout is close to the peak experienced in recent yearsBeef prices reflect the mix of strong market conditions and a shortage of supplyLamb returns are strong with record prices being paid at saleyardsHorticulture income is healthy across the broad spectrum of the kiwifruit, avocado, pip-fruit, stone-fruit, and
viticulture sectorsFine wool returns continue to dominate the strong wool sector, where a carpet-induced lifeline is tantalizingly close to
the latterThe financial sector is portraying an encouraging stance despite a predicted increase in the official cash rate which,
if and when it occurs, will impact on the retail market for interest ratesRegretfully however, labour, compliance and environmental issues continue to lurk and frustrate,” he concludes.Points of Interest around New Zealand include:Upper NorthNorthland recorded results in all categories, with sales of finishing, grazing and horticulture properties registering
comfortably for this time of yearAuckland by comparison dropped into the minimum sales zone with light results in the main categories.Central RegionsDairy farm sales in the Waikato, King Country and Taupo regions were steady and more solid than in the previous two
seasons, with finishing and grazing sales just getting on the registerBay of Plenty remained solid in the horticulture sector where smaller avocado orchards dominated; activity in the
Rotorua district remained modestGisborne recorded a single grazing unit sale with the mirror image in Hawke’s Bay bolstered by the sale of a versatile
pip-fruit/stone fruit orchardTaranaki scored light runs in 3 of the 7 categories.Lower North IslandSales in the Manawatu, Wanganui, Tararua regions were uncharacteristically light with minimal results recordedThis trend was exacerbated with zero results in the Wairarapa and Wellington districts.Upper South IslandLight results for the Nelson, Tasman, Marlborough province with minimal sales in each categoryConstrained activity within the arable, finishing, grazing and forestry sectors throughout Canterbury, where promising
activity is building up in the dairy sectorWest Coast scored two runs on the grazing scoreboard.Lower South IslandOtago achieved steady outcomes for finishing and grazing properties, albeit considerably down on results from 12 months
agoSouthland maintained par with their northern neighbors with steady sales of finishing and grazing properties.
In August 2021, Finishing farms accounted for a 31% share of all sales. Grazing farms accounted for 29% of all sales,
Horticulture farms accounted for 15% of all sales and Dairy farms accounted for 9% of all sales. These four property
types accounted for 84% of all sales during the three months ended August 2021.
Dairy Farms
For the three months ended August 2021, the median sales price per hectare for dairy farms was $41,830 (29 properties),
compared to $35,740 (36 properties) for the three months ended July 2021, and $32,885 (8 properties) for the three
months ended August 2020. The median price per hectare for dairy farms has increased 27.2% over the past 12 months. The
median dairy farm size for the three months ended August 2021 was 122 hectares.
On a price per kilo of milk solids basis the median sales price was $40.93 per kg of milk solids for the three months
ended August 2021, compared to $33.30 per kg of milk solids for the three months ended July 2021 (+22.9%), and $ 31.60
per kg of milk solids for the three months ended August 2020 (+29.5%).
The REINZ Dairy Farm Price Index increased 6.9% in the three months to August 2021 compared to the three months to July
2021. Compared to August 2020, the REINZ Dairy Farm Price Index increased 15.7%. 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 August 2021, the median sale price per hectare for finishing farms was $31,010 (95
properties), compared to $33,380 (120 properties) for the three months ended July 2021, and $32,670 (109 properties) for
the three months ended August 2020. The median price per hectare for finishing farms has decreased -5.1% over the past
12 months. The median finishing farm size for the three months ended August 2021 was 36 hectares.
Grazing Farms
For the three months ended August 2021, the median sales price per hectare for grazing farms was $11,670 (89
properties), compared to $11,905 (112 properties) for the three months ended July 2021 and $11,155 (112 properties) for
the three months ended August 2020. The median price per hectare for grazing farms has increased 4.6% over the past 12
months. The median grazing farm size for the three months ended August 2021 was 119 hectares.
Horticulture Farms
For the three months ended August 2021, the median sales price per hectare for horticulture farms was $291,640 (45
properties), compared to $247,250 (47 properties) for the three months ended July 2021 and $270,400 (53 properties) for
the three months ended August 2020. The median price per hectare for horticulture farms has increased 7.9% over the past
12 months. The median horticulture farm size for the three months ended August 2021 was 8 hectares.ENDSReal 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 August 2021 refer to the period from 1 June 2021 to 31 August 2021.
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 March 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.
From March 2021 there has been a change in the methodology for calculating rural statistics. To date, the rural
statistics have referred to a Return Period which is the month in which a sale record was submitted to REINZ. Going
forward, the rural statistics will refer to an Unconditional Month i.e., the month in which the sale went unconditional.
This change in methodology ensures that sales that took place in April, for instance, are recorded against April even if
they were submitted to REINZ late. The change also brings Rural statistics calculation into line with the Residential
statistics calculation, where the Unconditional Month approach has been used successfully to calculate Residential
Statistics for several years now. The Unconditional Month methodology also ensures that the most up-to-date state of the
REINZ database is reported at the time the data is released with revision of prior months statistics often occurring to
reflect the submission of late data or sale amendments that took place after the prior statistics release.
In addition to the calculation period change there are two additional changes to the data worth noting:
1. 12 Districts have been replaced by 13 Regions. These are consistent with the parts of the residential press release
and it has been done to be consistent with regional definitions outside REINZ e.g., Statistics NZ
2. Dairy Support is a new farm category and we now have the ability to separate Lifestyle Blocks into Bareland and
Farmlets.
If you have any questions regarding this change in methodology, please email statistics@reinz.co.nz.