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.
Overall, there were 426 farm sales in the three months ended February 2022, compared to 498 farm sales for the three months ended January 2022, down 12.4%, and 472 farm sales for the three months ended February 2021.
A total of 1,760 farms were sold in the year to February 2022, 148 more than were sold in the year to February 2021.
The median price per hectare for all farms sold in the three months to February 2022 was $30,130.
The REINZ All Farm Price Index increased 0.3% in the three months to February 2022 compared to the three months to January 2022.
The REINZ All Farm Price Index adjusts for differences in farm size, location, and farming type, unlike the median price per hectare, which does not adjust for these factors.
“Interesting times continue in the farming community, with the distractions of Covid, Delta, Omicron and the Ukraine war offset by strong product prices, the dairy sector being the star performer as a record milk price beckons,” says REINZ rural spokesman Brian Peacocke.
“Climate conditions, ever variable, continue to be a particular challenge in the current farming season,” he concludes.
