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Farm Sales Hit New Record – REINZ
16 May 2008
The New Zealand farm real estate market continued its buoyant progress in April in stark contrast to the residential property market, according to REINZ National Councillor and rural spokesperson for the Institute Mr Peter McDonald.
The farm sales median price reached a new record of $1,810,000 for the three months to April 2008, up 52.1 per cent on the April 2007 median of $1,190,000.
Dairy farm sales were again a major contributor to both strong sales and prices, in what is traditionally the ‘high season’ for rural property sales.
Farm sales were up 36.7 pr cent to 786 in the three months to April 2008 compared with 575 in the same period last year and 717 sales to March 2008.
Dairy farm sales were up from 157 to March 2008 to 163, well up on the 118 sales to April 2007.
The dairy median price was down slightly from $4,060,000 to March 2008 to $3,900,000 in the latest period but well up on the dairy median of $2,692,500 to April 2007.
A big increase in grazing property sales also contributed to the buoyancy, with sales up from 303 to March to 359 to April, compared with 247 this time last year.
The grazing median was up slightly from $1,300,000 to March to $1,305,500 in the latest period, compared with the grazing median of $980,000 a year ago.
According to Mr McDonald, farms are looking increasingly like a ‘safe harbour’ investment at a time of worsening economic conditions and a deteriorating residential property market.
“There is a huge amount of capital pouring into the rural property market at present both from higher dairy returns as well as non-farmer investors. The dollar has fallen back which has given the market renewed confidence.”
This confidence was also reflected in the lifestyle property market which refused to follow the lead of the residential real estate market by recording an increase in the median from $450,000 to March to $455,000 for the three months to April 2008.
Sales were only slightly lower at 1,438 to April compared with 1,484 to March, however were well down on the April 2007 sales figure of 2,206.
In other farm categories arable farms achieved a median of $1,500,000 on 33 sales, down slightly on the $1,590,000 to March, while finishing properties saw their median increase from $2,040,000 to March to $2,195,516 on 124 sales.
Horticultural properties were also in good demand with sales up from 31 to March to 39 in the latest period and the median was up from $850,000 to $855,000 in the three months to April 2008, although slightly lower than the equivalent figure of $917,500 to April 2007.
REINZ Rural Market Report - April 2008.pdf
REINZ Rural Market Report Stats April 2008.pdf