Promising start to summer for farm sales

New data shows an increase in farm sales for the last three months of last year.

Figures released by the Real Estate Institute of New Zealand (REINZ) shows there were 46 more farm sales (+11.7 percent) for the three months ended December 2018 than for the three months ended December 2017. 

Overall, there were 440 farm sales in the three months ended December 2018, compared to 336 farm sales for the three months ended November 2018 (+31.0 percent), and 394 farm sales for the three months ended December 2017. 

REINZ Rural Spokesman Brian Peacocke said sales volumes were generally up across the board.

"Sales volumes for the three month period ending 31 December 2018 were stronger in all categories compared to the previous three month period, apart from horticulture sales which eased by 12 percent," he said.

However most were down on two years ago.

"Compared to the same period ending December 2016, all categories were down significantly apart from sales of finishing properties which increased over that period by 13 percent," said Mr Peacocke.

The median price per hectare for all farms sold in the three months to December 2018 was $27,288 compared to $29,266 recorded for three months ended December 2017 (-6.8 percent). 

The median price per hectare fell 10.3 percent compared to November 2018.  

Promising start to summer for farm sales
Photo credit: Supplied

Points of interest around New Zealand include:

• Dairy - a significant reduction in sales volumes throughout the upper North, Waikato and Rotorua/Bay of Plenty; holding par in Taranaki and Manawatu/Wanganui; miserable results in central South Island but consistent with previous seasons in Southland

• Finishing - steady sales in Northland and Hawke’s Bay; very strong activity throughout the wider Waikato/Northern King Country region although a number of smaller units bolstered sales figures; solid results throughout Nelson/Marlborough, Canterbury and Otago, with a strong upturn in Southland during December, which almost equated to one of their best months as recorded in December 2016

• Grazing - reasonable sales success in Northland and Gisborne; consistently solid in the Waikato, Hawke’s Bay and Canterbury, but an extremely good result for the month of December throughout the Manawatu/Wanganui region

• Arable - sales numbers are level with the better months in recent years, with Canterbury enjoying one of their stronger outcomes for some time

• Horticulture - sales results reflect a healthy industry in cruise mode for December, with Gisborne the clear leader of the regions and comfortably ahead of Bay of Plenty

• Forestry - minimal activity in most regions apart from steady sales and an equal sharing of honours between the Marlborough, Tasman and Nelson districts.

Read the full report here.