Healthy farm sales over spring, says report

New figures show there was an increase in farm sales for the past three months, and a jump in sales prices.

Data released by the Real Estate Institute of NZ (REINZ) shows there were 20 more farm sales (+6.3 percent) for the three months ended November 2018 than for the three months ended November 2017. 

Overall, there were 336 farm sales in the three months ended November 2018, compared to 263 farm sales for the three months ended October 2018 (+27.8 percent), and 316 farm sales for the three months ended November 2017. 

However year on year the number dropped, with 1486 farms sold in the year to November 2018, that's 5.9 percent fewer than were sold in the year to November 2017.

The median price per hectare for all farms sold in the three months to November 2018 was $30,411 compared to $26,802 recorded for three months ended November 2017 (+13.5 percent).

The median price per hectare rose 12.1 percent compared to October 2018.  

Brian Peacocke, rural spokesman at REINZ, said the sector is looking healthy.

He said sales data for November 2018 compared to the same periods in 2017 and 2016 reflects an increase in volume for the finishing category, but reductions in the dairy, grazing and arable categories. 

Horticulture improved from 2017 but was down 28 percent on November 2016. Forestry remained relatively stable.

"Reports from the regions confirm significant numbers of properties being available for sale during the spring, particularly dairy farms, this being an indication of a mix of factors including age and stage of property owners; increasing charges; costs relating to compliance and labour; dissatisfaction with a milk processing company, and in some quarters, frustration with the perceived lack of empathy emanating from central Government."

Mr Peacocke said unsettled environment, sheep, beef, arable and horticulture properties have continued to create good demand and sell well.

"By contrast, perhaps as a result of vendor expectations and the reduced confidence amongst some purchasers, a number of dairy farms have failed to sell," he said.


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