Farm sales drag over big wet
Farm sales have slumped as record rainfall across much of the country hits the rural real estate market.
The latest figures from the Real Estate Institute of New Zealand (REINZ) showed there were 117 fewer farm sales which was a drop of 30.2 per cent for the three months ending September than for the same period last year.
Overall, there were 271 farm sales in the three months ending September, compared with 388 farm sales a year ago.
REINZ rural spokesman Brian Peacocke said sales volumes reflected the extreme climatic conditions faced by the farming community in recent months.
‘‘Record rainfall has created soil moisture levels bordering on capacity throughout much of the country,’’ he said.
‘‘Waterlogged pastures during September have resulted in a very slow start to the milk production season, and frustration for both arable farmers and agricultural contractors alike where ground conditions in many regions have kept machinery in the sheds.
‘‘Rural morale has been severely tested but the redeeming features of a strengthening milk payout, stable interest rates and a steady exchange rate environment have provided light at the end of the tunnel.
‘‘An increase in sunshine would be the bonus.’’
However, a considerable number of farms were now coming on the market, with evidence of more land owners considering their options, Peacocke said.
‘‘Labour, climate, environmental issues and politics are amongst the driving factors for decisions currently being made.’’
Finishing properties accounted for the largest number of sales, with a 38 per cent share of all sales over the three months to September.
The median sale price per hectare for finishing farms was $30,828, compared with $26,834 for the three months ending September last year, an increase of 14.9 per cent.
Grazing properties made up a quarter of all sales, although the median sales price per hectare of
$12,031 was down 22 per cent on the
$15,339 recorded a year ago. Dairy farms accounted for 8 per cent of sales. The median sales price per hectare for dairy farms was $37,812 compared with $33,132 a year ago, an increase of 14.1 per cent.
On a price per kilogram of milk solids basis, the median sales price was $36.78 a kilogram of milk solids compared with $43.05/kg a year ago (down 14.6 per cent).
The median price per hectare for all farms sold in the three months to September was $27,363 compared with $26,825 a year ago (up 2 per cent).
Sales volumes dropped in 11 of 14 regions for the three months ending September from a year ago.
Nelson had the largest decrease with 23 fewer sales followed by Auckland (19 fewer).
A new listing in Canterbury was Glenralloch farm, overlooking Pigeon Bay, which has been in the same family for 174 years since Scottish settler Ebenezer Hay settled in 1843 with 10 head of cattle.
The 500-hectare sheep and finishing farm with a six-bedroom mansion has a rateable value of $3.54 million. Bayleys agents said interest in the property had been strong since it was listed in the first week of October, but no offers had been made.
Rural morale has been severely tested but ... a strengthening milk payout [and] stable interest rates have provided light.
Brian Peacocke