Farm sales up but val­ues de­cline

Matamata Chronicle - - Rural Delivery -

Arecord num­ber of farm sales re­flects the pos­i­tive out­look in the ru­ral sec­tor, but val­ues are de­clin­ing, the Real Es­tate In­sti­tute says.

Fig­ures re­leased by the in­sti­tute show there were 165 more farm sales for the three months to Jan­uary than in the same pe­riod last year, an in­crease of more than 40 per cent.

Over­all, there were 564 farm sales in the three months to the end of Jan­uary, com­pared with 554 farm sales for the three months to De­cem­ber, an in­crease of 1.8 per cent.

In the year to Jan­uary 1794 farms were sold, an in­crease of 23.3 per cent on the pre­vi­ous year and the high­est level of sales in a 12-month pe­riod since Fe­bru­ary 2009.

The REINZ All Farm Price In­dex rose by 2.3 per cent from 3256.1 to 3332.2 in the three months to Jan­uary com­pared with the three months to De­cem­ber.

Com­pared with Jan­uary last year the in­dex rose by 9.6 per cent.

In­sti­tute ru­ral spokesman Brian Pea­cocke said the in­crease in sales vol­umes for the three months to the end of Jan­uary showed a pos­i­tive mood was pre­vail­ing through­out the ru­ral sec­tor.

‘‘Most re­gions are see­ing solid de­mand for dairy, dairy sup­port and sheep and beef prop­er­ties,’’ he said.

How­ever the me­dian price per hectare for all farms sold in the three months to Jan­uary was $22,644, a 5.6 per cent drop com­pared with the $23,980 me­dian price recorded for the equiv­a­lent three-month pe­riod last year.

The me­dian price per hectare also fell by 6.3 per cent com­pared to De­cem­ber.

Eleven re­gions recorded more sales for the three months end­ing in Jan­uary com­pared to the equiv­a­lent pe­riod last year.

Otago recorded the big­gest in­crease with 35 more sales, fol­lowed by South­land with 31 more sales and Taranaki where sales in­creased by 27.

Two re­gions recorded falls in sales with Nel­son record­ing seven less and Auck­land four.

Mr Pea­cocke said the beef and sheep mar­ket had been strong in Otago but the short­age of list­ings was a con­straint.

Graz­ing prop­er­ties ac­counted for the largest num­ber of sales with a 42 per cent share of all sales over the three months to Jan­uary.

Fin­ish­ing prop­er­ties ac­counted for 21.1 per cent of sales, dairy farms ac­counted for 22.5 per cent and hor­ti­cul­ture prop­er­ties ac­counted for 6.4 per cent of all sales.

The mar­ket for life­style prop­er­ties continues to be healthy, both in vol­ume and me­dian price.

For the 12 months to Jan­uary there were 6631 sales of life­style prop­er­ties, an in­crease of 13.3 per cent over the equiv­a­lent pe­riod last year.

The na­tional me­dian price for life­style blocks sold in the three months to Jan­uary rose to a record high of $535,000, an in­crease of 7.3 per cent on the me­dian price in same three-month pe­riod in 2013.

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