Farm sales up despite land price rise

There were 82 more farm sales for the three months to the end of last month than for the three months to the end of July last year.

Overall, the Real Estate Institute of New Zealand (REINZ) said there were 438 farm sales in the three months to end of July 2012, compared to 474 farm sales for the three months ended June 2013.

REINZ statistics showed that 1536 farms were sold in the year to July 2013, 6.7 per cent more than were sold in the year to July 2012.

The median price per hectare for all farms sold in the three months to July 2013 was $20,667; a 15.1 per cent increase on the $17,955 recorded for three months ended July 2012.

The median price per hectare rose 4.8 per cent compared to June.

Nine regions recorded increases in sales volume for the three months ended July 2013 compared to the three months ended July 2012. Waikato recorded the largest increase in sales (+25 sales), followed by Auckland (+23) and Bay of Plenty (+13).

Four regions recorded decreases in sales volume with Wellington recording the largest fall (-7 sales), followed by Manawatu/ Wanganui and West Coast (-2) and Gisborne (-1).

Compared to the three months ended June 2013 six regions recorded an increase in sales, led by Bay of Plenty (+10 sales).

‘‘Ideal late winter and early spring conditions, combined with solid payout predictions for primary produce have raised levels of confidence in the rural sector,’’ said REINZ rural spokesperson Brian Peacocke.

‘‘Demand for quality farms is strong across the entire country and in most regions, early signs indicate a shortage of supply for the spring selling season.

‘‘Calving activity reduced sales of dairy farms in July but sales of finishing and grazing properties have remained at healthy levels in the top half of the North Island as well as in Canterbury, Otago and Southland regions. Sales for other farm types have remained light. ‘‘Activity has remained strong in Southland for all farm types, with particular demand for properties with soils that are capable of sustainable wintering.

There is strong interest in grazing properties, particularly dairy and dairy support properties in Otago. The proposed irrigation schemes in Canterbury and Hawke’s Bay are also generating interest in those regions.’’

Grazing properties accounted for the largest number of sales with a 44.1 per cent share of all sales over the three months to July, while dairy properties accounted for 10.7 per cent, finishing properties 24.9 per cent and horticulture properties 8.9 per cent.

These four property types accounted for 88.6 per cent of all sales during the three months ended July 2013. months ended June (228 properties), and $13,023 (190 properties) for the three months ended July 2012. The median grazing farm size for the three months ended July 2013 was 56ha. (+101 sales), followed by Canterbury (+41) and Otago (+25). Compared to June 2013, 10 regions recorded increases in sales with three regions recording a decrease. Otago recorded the largest increase in sales (+ 14 sales), followed by Canterbury (+11) and Waikato (+6).

The national median price for lifestyle blocks rose by $13,500, from $ 475,000 for the three months to July 2012 to $488,500 for the three months to July 2013. The median price for lifestyle blocks in Auckland rose by 16.5 per cent in the year to July 2013, and rose by 4.4 per cent in Waikato. However, the median price fell by 14.2 per cent in Canterbury. Compared to June 2013 the median price fell by $16,500 from $505,000 in June to $488,500 in July.

The number of days to sell for lifestyle properties eased by three days, from 69 days for the three months to the end of June to 72 days for the three months to the end of July. Compared to the three months ended July 2012 the number of days to sell improved by 13 days from 85 days to 72 days. Taranaki recorded the shortest number of days to sell in July at 28 days, followed by Southland at 46 days and Canterbury at 55 days. Gisborne recorded the longest number of days to sell at 124 days, followed by Northland and Bay of Plenty, both on 105 days. ‘‘Rising residential prices in the major cities is providing additional stimulus in the lifestyle sector,’’ Mr Peacocke said.