Farm sale gives a mar­ket in­sight


AWaitoa dairy farm has sold at auc­tion for al­most $3 mil­lion, giv­ing buy­ers and sell­ers a rare in­sight into where the mar­ket is at in these slow times.

Bay­leys Real Es­tate’s sale of a 79ha farm and build­ings at Waitoa, with­out any Fon­terra shares, for $2.88 mil­lion comes at a time when the mar­ket has al­most slowed to a stand­still.

Agents said it would take nearly six years to sell the Waikato’s farm in­ven­tory of 296 farms if sales con­tin­ued at the cur­rent rate.

Bay­leys ru­ral sales man­ager Mark Dawe said the Waitoa auc­tion at­tracted three bid­ders. ‘‘ Even through the boom, if you had three bid­ders that was very good,’’ Mr Dawe said.

He said Bay­leys had also sold two other farms in the last few days, one of 60ha for a com­pa­ra­ble price and a 370ha unit.

He did not have author­ity to re­lease the fig­ures.

Mr Dawe said he hoped the fig­ures, which would soon be re­leased through the REINZ monthly re­port, would help buy­ers and sell­ers gauge the mar­ket.

The lat­est fig­ures, for the Au­gust to Oc­to­ber quar­ter, had the Waipa district as the only one in the Waikato to sell any farms in Au­gust. Two Waipa farms were sold in Septem­ber when there was one farm sale in Mata­mata-Pi­ako district and four in the Waikato district.

One farm sold in the Mata­mata-Pi­ako district in Oc­to­ber.

There were also farms sold in Otoro­hanga, Taupo and Waipa. Prices ranged from just un­der $1 mil­lion to just over $3 mil­lion.

Ru­ral con­fi­dence is low with farm­ers fac­ing a fourth con­sec­u­tive drought and the ex­tra costs, of around $100,000 per farm, of ex­tra feed and lost pro­duc­tion.

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