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.