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Rural Sales Volumes Lifting As Spring Sales Season Gets Underway


15 Dec 2011


Data released today by the Real Estate Institute of NZ (“REINZ”) shows there were 145 more farm sales (+85.3%) for the three months ended November 2011 than for the three months ended November 2010.  Overall, there were 315 farm sales in the three months to end of November 2011, compared with 170 farm sales in the three months to November 2010.  The number of sales increased by 29 (+10.1%) in the three months to November 2011 compared to the three months ended October 2011.

The median price per hectare for all farms sold in the three months to November 2011 was $20,445 (+8.3%) compared to $18,878 in the three months to October 2011 and $20,891 for the three months to November 2010. 

Eight regions recorded increases in sales volume for the three months ended November 2011, with Canterbury again recording the largest increase (+11 sales), followed by Taranaki (+10 sales) and Auckland (+9 sales).  Four regions recorded lower sales with Wellington recording the largest fall (-6 sales) followed by Manawatu/Wanganui (-3 sales), Nelson and Hawkes Bay (-2 sales each), when compared to the three months ended October 2011.

“Excellent spring growing conditions, favourable product prices, low interest rates and good banking support have created an ideal climate for land transactions,” says REINZ Rural Market Spokesman Brian Peacocke.  “However despite these positive factors, buyers remain quite selective in their purchase decisions.  Prices for dairy farms have seen a noticeable lift with peak prices being paid in excess of $50,000 per hectare in Canterbury and $55,000 per hectare in the Waikato.  Although these values include Fonterra shares, they nevertheless reflect a solid gain on prices being paid earlier in the year.”

Included in sales for the month of November were 18 dairy farms at an average sale value of $35,871 per hectare.  The average farm size was 144 hectares with a range of 52 hectares in Taranaki to 323 hectares in Canterbury.  The average production per hectare across all dairy farms sold in November 2011 was 1,034 kgs of milk solids.

Grazing properties accounted for the largest number of sales with 59.4% share of all sales over the three months.  Finishing properties accounted for 13.0%, Dairy properties 8.6%, and Horticulture properties 7.9%.  These four property types accounted for 88.9% of all sales during the three months ended November 2011.

For the three months ended November 2011 the median sales price per hectare for dairy farms was $36,766 (27 properties), compared to $29,668 for the three months ended October 2011 (17 properties), and $26,590 (14 properties) for the three months ended November 2010.  The median dairy farm size for the three months ended November 2011 was 122 hectares.

For the three months ended November 2011 the median sales price per hectare for finishing farms was $20,445 (41 properties) compared to $18,847 for the three months ended October 2011 (43 properties), and $13,368 (13 properties) for the three months ended November 2010.  The median finishing farm size for the three months ended November 2011 was 100 hectares.

For the three months ended November 2011 the median sales price per hectare for grazing farms was $16,591 (187 properties) compared to $16,013 for the three months ended October 2011 (168 properties), and $14,071 (90 properties) for the three months ended November 2010.  The median grazing farm size for the three months ended November 2011 was 65 hectares.

For the three months ended November 2011 the median sales price per hectare for horticulture farms was $106,471 (25 properties) compared to $84,960 (22 properties) for the three months ended October 2011, and $161,757 (34 properties) for the three months ended November 2010.  The median horticulture farm size for the three months ended November 2011 was seven hectares.

The lifestyle property market also saw a modest increase in the number of sales in the three months to November 2011 compared to the three months to October 2011.  1,222 sales were recorded in the three months to November, up 25 (+2.1%) on the three months to October 2011, and up 146 (+13.6%) compared to the three months to November 2010. 

Eight regions recorded increases in sales compared to October while five recorded falls.  Nelson recorded the largest increase (+15 sales), followed by Auckland (+14 sales) and Hawkes Bay (+11 sales), followed by Northland (+6 sales) and Waikato (+4 sales). Wellington recorded the largest drop (-20 sales), followed by Taranaki (-6 sales) and Southland (-4 sales).

The national median price for lifestyle blocks rose by $15,000 from $435,000 for the three months to October to $450,000 for the three months to November.  Compared to three months to November 2010 the median price increased by $18,250. 

Commenting on the lifestyle property market statistics Brian Peacocke said, “We are seeing some improving trends in the lifestyle property market, with rising sales and prices across many regions.  Canterbury has been the stand out performer with 72% more sales in the three months to November this year compared to three months to November last year.”

REINZ Rural Press Release November 2011.pdf
REINZ Rural Market Statistics - November 2011.pdf