Farm sales dip a lit­tle but prices down by a third

South Waikato News - - RURAL DELIVERY -

From a high of $4,650,000 in Au­gust 2008 the three­month me­dian price for dairy­ing prop­er­ties is down by a third to $3,100,000 in the lat­est REINZ Ru­ral Mar­ket Re­port statis­tics.

Only 17 dairy farms were sold in the three months to Au­gust, one fewer than in the same pe­riod last year and sig­nif­i­cantly be­low the 67 trans­ac­tions in the three months to Au­gust 2008.

Just three dairy farms sold in Au­gust at an av­er­age price of $2,543,333 and the av­er­age price per hectare de­creased to $31,598 from $36,435 in July.

The av­er­age price per kilo­gram of milk solids has fallen fur­ther to $33 from $37 in July, $40 in June and $45 in May.

From a peak of $90,125 in Au­gust 2009, the av­er­age price per hectare of all types of farms has fallen to $29,739.

The 192 farms sold in the three months to the end of Au­gust is an in­crease on the 183 in the same pe­riod last year but fewer than the 516 trans­ac­tions in the three months to Au­gust 2008.

The na­tional me­dian farm sale price eased from $ 1,118,500 for the three months to July to $ 1,127,754 for the three months to Au­gust 2010.

Well down on the me­dian of $ 1,742,500 for the equiv­a­lent pe­riod in 2008, the lat­est Au­gust fig­ure is frac­tion­ally above the me­dian for all farms of $ 1,000,000 for the same three months in 2009.

How­ever, with the low num­ber of sales oc­cur­ring, price fluc­tu­a­tions, both up­wards and down­wards, can be im­pacted by the range of prices of the mix of prop­er­ties be­ing sold.

On a re­gional ba­sis the largest num­ber of farm sales dur­ing the three months to Au­gust was 31 in Can­ter­bury, 24 of them graz­ing prop­er­ties and 27 in South­land, 11 of them graz­ing prop­er­ties.

Dur­ing the past year me­dian prices for farms have de­clined in eight out of the 14 dis­tricts.

In the three months to Au­gust 2010 com­pared with the cor­re­spond­ing pe­riod in 2009, farm sale prices were down in Waikato from $ 1,663,655 to $ 1,187,500 and in Bay of Plenty from $1,000,000 to $920,000.

There was an­other de­crease in the num­ber of sales of life­style prop­er­ties from 1088 at the end of July to 1066 in the three months to t he end of Au­gust and t he na­tional me­dian sell­ing price eased from $447,500 at the end of July to $ 436,750 l ast month.

While the Au­gust 2010 me­dian is stil l up on $430,000 for the same three month pe­riod in 2009 it is be­low t he Au­gust 2008 me­dian of $450,000.

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