Click here for Rural Press Release
Click here for Rural Market Report
Click here for All Farm Price Index
Click here for Lifestyle Press Release
Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 60 fewer farm sales (-22.2%) for the three months ended July 2023 than for the three months ended July 2022. Overall, there were 210 farm sales in the three months ended July 2023, compared to 225 farm sales for the three months ended June 2023 (-6.7%), and 270 farm sales for the three months ended July 2022.
In the year to July 2023, 1,096 farms were sold, 535 fewer than were sold in the year to July 2022, with 35.5% fewer dairy farms, 11.1% fewer dairy support, 18.8% fewer grazing farms, 39.1% fewer finishing farms and 21.2% fewer arable farms sold over the same period.
The median price per hectare for all farms sold in the three months to July 2023 was $29,450 compared to $27,875 recorded for the three months ended July 2022 (+5.7%). The median price per hectare increased by 6.1% compared to June 2023.
The REINZ All Farm Price Index decreased 0.8% in the three months to July 2023 compared to the three months to June 2023. Compared to the three months ending July 2022 the REINZ All Farm Price Index decreased 7.2%. 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.
Three regions recorded an increase in the number of farm sales for the three months ended July 2023 compared to the three months ended July 2022, with the most notable being West Coast (+11 sales) and Bay of Plenty (+5 sales). Southland ( -20 sales) and Northland ( -14 sales) recorded the biggest decreases in sales. Compared to the three months ended June 2023, four regions recorded an increase in sales, the most notable being Auckland, Bay of Plenty and Otago (+3 sales).
Shane O’Brien, Rural Spokesman, at REINZ said: “The market once again followed the trend of the first six months of 2023 with a reduction in the number of sales across New Zealand in all sectors compared to the same time in 2022. The largest reduction occurred in the dairy sector with a 35% reduction in sales as farmers focused on controlling farm costs and higher interest rates and a predicted drop in farm gate milk prices. Similarly, the volume of sales of dairy support units was back.”
“There was also a substantial decrease in the volumes of sales in the pastoral sector, including both grazing and finishing properties. Recent weather events across a lot of New Zealand, a lower number of listings on the market and a drop in inquiry for carbon farming and forestry will have impacted this sector.”
O’Brien went on to say, “On a more positive and important note, while sales volumes are well down, sale values are holding steady with the previous 12 months with the median price paid across all sectors actually being up by 5%. This shows that buyers, although being cautious will pay a good price for the right property that meets their needs.”
In July 2023, finishing farms accounted for a 31% share of all sales. Grazing farms accounted for 26% of all sales, dairy farms accounted for 12% of all sales and horticulture farms accounted for 10% of all sales. These four property types accounted for 79% of all sales during the three months ended July 2023.
Dairy Farms
For the three months ended July 2023, the median sales price per hectare for dairy farms was $38,850 (25 properties), compared to $37,470 (29 properties) for the three months ended June 2023, and $39,290 (23 properties) for the three months ended July 2022. The median price per hectare for dairy farms has decreased by 1.1% over the past 12 months. The median dairy farm size for the three months ended July 2023 was 100 hectares.
On a price per kilo of milk solids basis, the median sales price was $31.94 per kg of milk solids for the three months ended July 2023, compared to $36.67 per kg of milk solids for the three months ended June 2023 (-12.9%), and $36.94 per kg of milk solids for the three months ended July 2022 (-13.5%).
The REINZ Dairy Farm Price Index increased by 2.8% in the three months to July 2023 compared to the three months to June 2023. Compared to July 2022, the REINZ Dairy Farm Price Index increased by 5.4%. 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 July 2023, the median sale price per hectare for finishing farms was $34,690 (65 properties), compared to $36,410 (66 properties) for the three months ended June 2023, and $35,320 (105 properties) for the three months ended July 2022. The median price per hectare for finishing farms has decreased by 1.8% over the past 12 months. The median finishing farm size for the three months ended July 2023 was 31 hectares.
Grazing Farms
For the three months ended July 2023, the median sales price per hectare for grazing farms was $13,600 (55 properties), compared to $14,080 (63 properties) for the three months ended June 2023 and $13,730 (75 properties) for the three months ended July 2022. The median price per hectare for grazing farms has decreased by 0.9% over the past 12 months. The median grazing farm size for the three months ended July 2023 was 159 hectares.
Horticulture Farms
For the three months ended July 2023, the median sales price per hectare for horticulture farms was $462,400 (21 properties), compared to $331,970 (17 properties) for the three months ended June 2023 and $403,715 (28 properties) for the three months ended July 2022. The median price per hectare for horticulture farms has increased by 14.5% over the past 12 months. The median horticulture farm size for the three months ended July 2023 was 4159 hectares.
