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.
The number of farm sales, with the total of 498, was up 5.5% for the three months ending April 2014, compared to the same total last year.
Compared to April 2013 the REINZ All Farm Price Index rose by 14.7%. The REINZ All Farm Price Index adjusts for differences in farm size, location and farming type compared to the median price per hectare, which does not adjust for these factors.
Eight regions recorded increases in sales volume for the three months ended April 2014 compared to the same period last year. Bay of Plenty recorded the largest increase in sales (+25 sales), followed by Otago and Northland with nine sales each, and Nelson with eight sales. Compared to the three months ended March 2014, six regions recorded an increase in sales.
REINZ rural spokesman Brian Peacocke says morale has rebounded following drought breaking rainfall in the northern regions. "Conversely, the surplus of rain that has been great for the pastoral sector in the South Island has impacted heavily on some in the arable sector."
Noteworthy points include: -
• A steady market for dairy and grazing properties in Northland
• A shortage of listings for good dairy and dairy support properties throughout the wider Waikato region
• A strong upturn in prices in the Bay of Plenty for good quality, well situated kiwifruit orchards with local buyers to the fore
• Following a healthy period of activity, a distinct winding down of the market in Taranaki as the season draws to a close
• Steady sales volumes for dairy and grazing properties in Manawatu but a quieter market in the south eastern North Island
• Depleted stocks are tied to the seasonal slowdown in Canterbury – still good enquiry for quality dairy farms albeit buyer resistance to higher prices has become evident
• Continuing strong enquiry but a shortage of properties available in Otago
• A busy market across all fronts in Southland with additional interest stimulated by the release of a number of Solid Energy properties within the province
• Grazing properties accounted for the largest number of sales with 37.1% share of all sales over the three months to April, Finishing properties accounted for 21.5%, Dairy properties accounted for 21.1% and horticulture properties accounted for 9.6% of all sales. These four property types accounted for 89.4% of all sales during the three months ended April 2014.
