Farm sales and prices up

Matamata Chronicle - - Rural Delivery -

Re­turn­ing con­fi­dence in the ru­ral sec­tor has in­creased farm sales, the lat­est Real Es­tate In­sti­tute of New Zealand ru­ral mar­ket re­port re­veals.

A to­tal of 1451 farms were sold across the coun­try in the year to Au­gust, a 44.7 per cent in­crease on the cor­re­spond­ing pe­riod last year and the high­est num­ber of sales on record since April 2009.

The me­dian price per hectare also rose a solid 18.5 per cent year on year.

One hectare cost $17,995 in the three months to Au­gust while it went for $15,148 in the same three months last year, the re­port shows.

In­sti­tute ru­ral spokesman Brian Pea­cocke said the lift in num­bers showed con­fi­dence re­turn­ing to the sec­tor af­ter the fi­nan­cial cri­sis caused farm prices to drop and sales to re­duce.

‘‘The in­creases come from quite a low base,’’ Mr Pea­cocke said.

‘‘But there has been a pickup of con­fi­dence.’’

He said there was still volatil­ity in the mar­ket, with Fon­terra re­vis­ing its milk pay­out fore­cast range.

Waikato fig­ures re­flected the na­tional trend, with in­creases in sales and prices. The price of dairy farms per hectare in the re­gion went from $36,044 in the three months to Au­gust last year to $42,166 this year.

In the same pe­riod 31 farms were sold in Waikato, com­pared with 24 in the same three-month pe­riod last year.

The re­gion is one of the strong­est na­tion­ally in life­style prop­erty sales – 203 life­style blocks sold dur­ing the past year at a me­dian price of $467,500.

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