Data released today by the Real Estate Institute of NZ (“REINZ”) shows there were 13 more farm sales (+3.3%) for the three months ended June 2012 than for the three months ended June 2011. Overall, there were 406 farm sales in the three months to end of June 2012, compared with 467 farm sales in the three months to May 2012, an decrease of 61 sales (-13.1%). On a seasonally adjusted basis, after accounting for normal seasonal fluctuations, the number of sales fell by 6.8%.
1,413 farms were sold in the year to June 2012, 47.2% more than were sold in the year to June 2011.
The median price per hectare for all farms sold in the three months to June 2012 was $17,565; a 12.8% increase on the $15,568 recorded for three months ended June 2011, and an increase of 3.1% on the $17,031 recorded for the three months to May 2012.
Nine of the fourteen regions recorded increases in sales volumes for the three months ended June 2012 compared to the three months ended June 2011. Wellington recorded the largest increase in sales (+11 sales), followed by Bay of Plenty (+10 sales) and Nelson (+8 sales). Southland recorded 12 fewer sales, Otago 11 fewer sales and Waikato six fewer sales in the three months to June 2012 compared to the three months to June 2011. Compared to the three months ended May 2012 only Hawkes Bay, Northland and Wellington recorded increases in sales.
“Demand for farm properties remains strong, despite the onset of winter and the continuing volatility in commodity prices,” says REINZ Rural Market Spokesman Brian Peacocke. “We are seeing continued strength in the finishing and grazing sectors, with continuing solid enquiry for good quality dairy farms, with some late in the season settlements.”