Farm prices continue to firm with the dairy sector finishing its traditional pre-spring transaction period on a high note with a national median price of $3,162,500, the Real Estate Institute said today.
The national farm median price was up from $1,250,000 to $1,270,000 for the three months to July, according to REINZ National President Murray Cleland.
“Sales were slightly up at 669 for the three months to July compared with 665 for the three months to June, but again it was a case of demand exceeding supply with keen buyers outstripping supply of farm listings with the resultant pressure on prices”.
The dairy median price was up from the June figure of $2,684,092 and at $3,162,500 was second only to the March 2007 median of $3,275,000, however this figure was recorded before the Institute introduced three month rolling median prices in June, and therefore is not directly comparable.
Mr Cleland said that the recent increased dairy payouts and the dollar appearing to ‘come off the top’ would underpin confidence in rural property
Dairy farm sales were down a little at 100 sales compared with 112 to June, while demand for grazing properties remained strong also with 281 sales to July compared with 285 to June, with the grazing median price steady at $1,200,000.
Finishing properties sales were up from 90 to June to 105 to July with the median price up from $1,245,000 to June to $1,650,000 to the end of July.
Horticulture properties remained in good demand with 58 sales to July compared with 59 to June and the median price rising from $1,030,000 to $1,140,000.
However, the lifestyle block market followed the cue of the residential property market in July with an easing of sales and prices, despite quite strong demand in some regions.
Lifestyle sales were down from 2041 in June to 1898 in July, compared with 1927 in the same three months to July 2006, and the national lifestyle median price was down from $450,000 in June to $445,750 in July.
However, of the 14 regions surveyed, eight experienced higher median prices and four experienced declines with two having unchanged median prices.
Auckland continued to be the most expensive area for lifestyle properties with a median of $820,000 to the end of July compared with $842,500 to the end of June, while Hawkes Bay was the second priciest area for lifestyle properties with a median of $495,000 to the end of July compared with $490,000 to the end of June.
Mr Cleland said that the underlying indications for lifestyle properties remained good judging by the regional median price performances, “lifestyle properties are pretty much money in the bank at present because of the favourable rub-off from the farm economy and the constant demand for residential properties on the outskirts of the cities”.