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Farm prices rise despite sales falls


23 Jan 2006


December farm prices firmed despite unusually low sales volumes, according to the latest rural sales report from the Real Estate Institute of New Zealand (Inc).  

The national median price reached $1,200,000 in December compared with $1,142,500 in November and $1,167,500 in December 2004.

Sales were well down however, with 233 transactions compared with 236 in November and the December 2004 figure of 326.

A similar trend was apparent in the lifestyle block sector with the median up from $380,000 to $387,500 in December, but sales were down to 552 compared with 720 in November and 633 in December 2004.

REINZ Vice President Mr Murray Cleland said today the sales fall was an indication of the shortage of listings with the farming community enjoying a sustained period of good returns and favourable climatic conditions.

A feature of the month was the continual rise in dairy farm prices with a new record of $3,282,000 reached compared with the November figure of $2,365,000 and the December 2004 figure of $2,260,000.

“Dairy farm prices have continued to set new records over the last few years and although this month saw a number of larger properties transacted which affected the median, there is no doubt that dairy farm prices are at an all-time high” Mr Cleland said.

Dairy farm sales were down from 54 in November to 46 in December, well below the December 2004 figure of 75 sales.

Finishing property prices were also buoyant, up from the November median of $1,450,000 to $1,800,000 on 27 sales, the same as November.

The December 2004 finishing property median was $1,525,000 based on 34 sales at the time.

Grazing property sales continued to dominate the figure with 105 sales in December, the same as November, with a median of $890,000, compared with $820,000 in November and the December 2004 median of $827,757.

 

Download full document: REINZ Rural Market Report December 2005.pdf