Prop­erty sales are on the rise again

Matamata Chronicle - - Rural Delivery - By ALI TOCKER

The Waikato re­gion led the coun­try in record­ing the high­est in­crease in farm sales in the De­cem­ber quar­ter com­pared to the three months to Novem­ber last year.

Lat­est Real Es­tate In­sti­tute of NZ (REINZ) fig­ures show 53 farms sold in Waikato in the De­cem­ber quar­ter, up 19 from the 34 sold in the three months to Novem­ber.

The Waikato recorded the third high­est in­crease in farm sales in the De­cem­ber quar­ter com­pared to the same pe­riod in 2011, with an in­crease of 13 sales, and beaten only by Auck­land – up 17 – and Nel­son – up 14.

Na­tion­ally, 382 farms sold in the De­cem­ber quar­ter, up 35.9 per cent on the 281 sold in the three months to Novem­ber 2012, and up 8.2 per cent on the 353 sold in the De­cem­ber 2011 quar­ter.

A to­tal of 1454 farms sold in the year to De­cem­ber – 21.9 per cent more than in the year to De­cem­ber 2011.

REINZ ru­ral mar­ket spokesman Brian Pea­cocke said the De­cem­ber fig­ures showed a healthy in­crease in vol­umes in most farm sales cat­e­gories, ex­cept hor­ti­cul­ture and forestry.

‘‘In the North Is­land we have seen an in­crease in ac­tiv­ity from sharemilk­ers, par­tic­u­larly in North­land and Taranaki, and more ac­tiv­ity in Waikato fo­cused on dairy prop­er­ties and dairy sup­port units.’’

There was also a no­tice­able lift in in­ter­est in dairy prop­er­ties in Can­ter­bury and South­land, he said.

The me­dian price per hectare for all farms sold in the De­cem­ber quar­ter was $23,070, a 12.8 per cent in­crease on the same pe­riod in 2011.

The REINZ All Farm Price In­dex rose by 1.1 per cent in the De­cem­ber quar­ter com­pared to the three months to Novem­ber, from 3,069.52 to 3,103.88.

Com­pared to De­cem­ber 2011, the REINZ All Farm Price In­dex in­creased by 0.4 per cent. The in­dex is in­tended to track price move­ments more ac­cu­rately, by ad­just­ing for prop­erty-spe­cific fac­tors such as lo­ca­tion, size and farm type and for macroe­co­nomic vari­ables such as in­ter­est rates, ex­change rates and com­mod­ity prices.

Mean­while, the na­tional life­style prop­erty mar­ket saw a 28.4 per cent in­crease in sales in the De­cem­ber quar­ter com­pared to the same pe­riod in 2011.

A to­tal of 1618 sales were recorded, up 358 on the 1260 sales in the three months to De­cem­ber 2011.

Nine re­gions recorded in­creases in life­style prop­erty sales over this pe­riod. Auck­land led with 135 more sales, fol­lowed by Waikato and ManawatuWhanganui with 50 more sales each.

The na­tional me­dian price for life­style blocks im­proved by $15,000 or 3.2 per cent from $475,000 for the three months to Novem­ber 2012, to $490,000 for the three months to De­cem­ber 2012 to reach a new record high.

Com­pared to the three months to De­cem­ber 2011, the me­dian price in the De­cem­ber 2012 quar­ter rose by 2.9 per cent or $13,750.

The life­style prop­erty mar­ket over­all was in good health with ris­ing vol­umes and the new record me­dian price, Mr Pea­cocke said.

‘‘Those prop­er­ties close to the main cen­tres, and Auck­land in par­tic­u­lar, are ex­pe­ri­enc­ing solid de­mand, although there is lit­tle pres­sure on prices in th­ese ar­eas.’’

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