Farm sales sluggish during 2017
Falling dairy prices and up and down weather have seen 12.5 per cent fewer farms sold over the year compared to the year before.
A total of 1577 farms were sold in the year to November, although the Real Estate Institute of New Zealand’s (REINZ) all farm price index rose by 13.9 per cent compared to a year ago.
Lifestyle block sales were also down by 14.9 per cent, with 7748 sold, 1360 fewer than last year.
Out of 14 regions, only Taranaki and Southland showed increased sales over the past three months.
REINZ rural spokesman Brian Peacocke said climatic and financial factors continued to keep the rural sector under pressure.
‘‘Having experienced the wettest and most difficult late winter/early spring period on record, the majority of the rural regions throughout the country are now having their resources stretched as the anticipated spring disappeared into one of the driest pre-Christmas periods experienced in many years.’’
‘‘The easing in the dairy payout gives an additional cautionary signal and the early dry is impacting on the ability to finish cattle and lambs in many regions. As signalled last month, and for the reasons outlined then, it would appear a record number of farms have come to the market this spring,’’ Peacocke said in a statement.
The median price per hectare for
"The majority of the rural regions throughout the country are now having their resources stretched." REINZ rural spokesman Brian Peacocke
dairy farms declined 6.8 per cent over the past 12 months, as did finishing farms (3.7 per cent) and grazing farms (5.5 per cent). Horticulture properties bucked the downward price trend with a rise of 69.3 per cent over the past year.
Peacocke said a number of dairy farms in Waikato failed to sell at auction but were later settled, while in North Canterbury a number of dairy farms were for sale amid word that liquidity was constrained as banks tightened their lending criteria.
The median price for all lifestyle properties sold in the three months to November 2017 was $620,000, $50,000 higher compared to the three months ended November last year.