The rural property market continued to outpace the residential property market in June with continued strong prices and sales, according to REINZ National Councillor and rural spokesperson for the Institute Mr Peter McDonald.
In particular lifestyle properties featured with a rise in the lifestyle median price from $450,000 in May to $455,000 in June, also up on the June 2007 figure of $450,000, indicating that lifestyle properties are proving to be something of a property ‘hedge’ against the wider malaise in residential property.
The national farm median price was down slightly from $1,860,000 for the three months to May, to $1,805,000 for the three months to June, but the market was nevertheless very strong according to REINZ rural agents.
Sales were down a little as well from 745 to May to 711 to June, but up on the 665 sales for the period to June 2007.
“The rural property market seems to go from strength to strength with the dairy sector continuing to make a major contribution to the buoyancy,” Mr McDonald said today.
Dairy sales were down a little from 147 for the three months to May, to 120 to June, largely as a result of the commencement of the new production season and the end of the traditional ‘window’ for dairy farm sales, between seasons.
The dairy median was down slightly from $4,050,000 for the three months to May to $4,025,000 for the three months to June, but agents reported demand from both existing dairy farmers and city investors remained strong.
“The dairy sector continues to underpin the rural property market but it is not alone in that, with finishing properties and grazing properties also highly sought after,” according to Mr McDonald.
The finishing property median price was up from $2,300,000 to $2,350,000, on sales up from 134 to May to 137 to June.
Grazing properties were also keenly sought with the median up from $1,380,000 to $1,440,000, although sales were down a little from 337 to May to 325 in the latest period, however this was well up on the sales a year ago of 285.
The lifestyle property market was similarly strong with eight of the 14 districts reporting increased median prices, pushing the median for lifestyle properties up from $450,000 in May, to $455,000 in June.
Sales were well down though from 1,335 in the three months to May to 1,177 for the three months to June, nearly half the level of sales for the period to June 2007, of 2,041.
“The strength of lifestyle property prices, despite the big drop in sales, is testimony to the confidence in the rural sector and must be to the envy of city property owners as the weakness in residential prices at present is not evident in the lifestyle property market,” Mr McDonald said.
Horticultural properties were also maintaining their position with the median price up from $950,000 to $985,000, although sales were a little lower at 40 to June, compared with 45 for the period to May.
Two sales of South Island high country Merino properties were also recorded in June, with a median price of $11,035,000.