Farming market booming
Returning confidence in the rural sector has increased farm sales, the latest Real Estate Institute of New Zealand rural market report reveals.
A total of 1451 farms were sold across the country in the year to August, a 44.7 per cent increase on the corresponding period last year and the highest number of sales on record since April 2009.
The median price per hectare also rose a solid 18.5 per cent year on year.
One hectare cost $17,995 in the three months to August while it went for $15,148 in the same three months last year, the report shows.
Institute rural spokesman Brian Peacocke said the lift in numbers showed confidence returning to the sector after the financial crisis caused farm prices to drop and sales to reduce.
"The increases come from quite a low base, but there has been a pickup of confidence.’’
He said there was still volatility in the market, with Fonterra revising its milk payout forecast range and exchange-rate concerns, but the report figures provided a strong platform for spring.
Waikato figures reflected the national trend, with increases in sales and prices.
The price of dairy farms per hectare in the region went from $36,044 in the three months to August last year to $42,166 this year.
In the same period 31 farms were sold in Waikato, compared with 24 in the same threemonth period last year.
The region is one of the strongest nationally in lifestyle property sales, with 203 lifestyle blocks sold in the last year at a median price of $467,500