Farm sales up de­spite land price rise

Matamata Chronicle - - Rural Delivery -

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.

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