Dairy Sector Drives Strong Rural Property Market Activity in NZ
The latest data from the Real Estate Institute of New Zealand (REINZ) reveals a mixed rural property market due to consistent inflation concerns.
However, this was still a 10% decrease on the 231 sales recorded for the three months ending July 2024.
In total, 923 farms were sold in the year to August 2024, a decline of 166 farms compared to the previous year.
Overall, the REINZ All Farm Price Index showed stability, with a slight decrease of 2.1% in the three months leading up to August compared to July.
The three months leading to August 2023 marked a 3.2% decline.
REINZ rural spokesman Shane O’Brien says that despite the headwinds currently faced by the rural sector, it is encouraging to see sales levels reach the same levels of the past two years, with 57 sales recorded in August 2024 compared to 55 in August 2022 and 51 in August 2023.
“August is traditionally a slow month for sales as many sellers wait for the warmer spring months and the traditionally busier selling months of October to December,” O’Brien says.
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“Many agents across the country are reporting increased enquiries during the month, with many tipping, so there could be some renewed confidence among buyers towards the dairy and dairy support sectors of the market,” he says.
For the three months ending August 2024, the median sales price per hectare for dairy farms was $36,930, compared to $35,705 for the three months ending July 2024 and $35,960 for the three months ending August 2023. The median price per hectare for dairy farms has increased by 2.7% over the past 12 months.
