Thursday, 15 December 2011 14:46

Rural real estate on the move

Written by 

TURNOVER IN farms and lifestyle blocks has picked up to levels not seen for three years, judging by Real Estate Institute of New Zealand (REINZ) data released today.

In the three months to the end of November 315 farms sold, nearly double the 170 sold in the same period last year and comfortably ahead of 2009’s 223 sales spanning the same period.

Median price/hectare was $20,445, back 2% on the September-November median last year and 3.7% behind the 2009 equivalent.

REINZ Rural Market Spokesman Brian Peacocke says excellent spring growing conditions, favourable product prices, low interest rates and good banking support have created an ideal climate for land transactions.

“However, despite these positive factors, buyers remain quite selective in their purchase decisions,” he adds.

Dairy farm prices show a noticeable lift with some over $50,000/ha in Canterbury and $55,000/ha in Waikato, including Fonterra shares. The dairy median, at $36,766/ha, is comfortably ahead of 2009 median of $33,318/ha for the comparable period, and 2010’s $29,668/ha.

Sales in November included 18 dairy farms at an average of $35,871/ha, with an average farm size of 144ha, ranging from 52ha in Taranaki to 323ha in Canterbury.  Average production across all dairy farms sold in November 2011 was 1,034kgMS/ha.

Grazing properties accounted for the largest number of sales with 59.4% share of all sales over the three months.  Finishing properties accounted for 13.0%, Dairy properties 8.6%, and Horticulture properties 7.9%.  These four property types accounted for 88.9% of all sales during the three months ended November 2011.

For the three months ended November 2011 the median sales price per hectare for dairy farms was $36,766 (27 properties), compared to $29,668 for the three months ended October 2011 (17 properties), and $26,590 (14 properties) for the three months ended November 2010.  The median dairy farm size for the three months ended November 2011 was 122 hectares.

For the three months ended November 2011 the median sales price per hectare for finishing farms was $20,445 (41 properties) compared to $18,847 for the three months ended October 2011 (43 properties), and $13,368 (13 properties) for the three months ended November 2010.  The median finishing farm size for the three months ended November 2011 was 100 hectares.

For the three months ended November 2011 the median sales price per hectare for grazing farms was $16,591 (187 properties) compared to $16,013 for the three months ended October 2011 (168 properties), and $14,071 (90 properties) for the three months ended November 2010.  The median grazing farm size for the three months ended November 2011 was 65 hectares.

For the three months ended November 2011 the median sales price per hectare for horticulture farms was $106,471 (25 properties) compared to $84,960 (22 properties) for the three months ended October 2011, and $161,757 (34 properties) for the three months ended November 2010.  The median horticulture farm size for the three months ended November 2011 was seven hectares.

The lifestyle property market also saw a modest increase in the number of sales in the three months to November 2011 compared to the three months to October 2011.  1,222 sales were recorded in the three months to November, up 25 (+2.1%) on the three months to October 2011, and up 146 (+13.6%) compared to the three months to November 2010. 

Eight regions recorded increases in sales compared to October while five recorded falls.  Nelson recorded the largest increase (+15 sales), followed by Auckland (+14 sales) and Hawkes Bay (+11 sales), followed by Northland (+6 sales) and Waikato (+4 sales). Wellington recorded the largest drop (-20 sales), followed by Taranaki (-6 sales) and Southland (-4 sales).

The national median price for lifestyle blocks rose by $15,000 from $435,000 for the three months to October to $450,000 for the three months to November.  Compared to three months to November 2010 the median price increased by $18,250. 

 “We are seeing some improving trends in the lifestyle property market, with rising sales and prices across many regions,” says Peacocke.

“Canterbury has been the stand out performer with 72% more sales in the three months to November this year compared to three months to November last year.”

More like this

Farm sales start to look up

Farm sales were down 21.6% for the three months ended December 2019 versus the year prior ­— but sales look to be lifting.

Weather impacts farm sales

Farm sales dropped slightly, according to data released today by the Real Estate Institute of New Zealand.

A promising start to summer

Summer has seen a good start to farm sales, according to the latest data from the Real Estate Institute of New Zealand (REINZ)

Featured

Water reforms come at a cost

The government’s new freshwater laws, signed off this week, have the potential to create significant unnecessary costs for ratepayers, farmers and entire communities, Federated Farmers says.

2020 harvest yields up

Final harvest data for wheat, barley and oats (milling/malting and feed) in 2020 show yields were up 17% overall across the six crops.

 

Difficult but the right call

DairyNZ chief executive Dr Tim Mackle says the joint decision three years ago to eradicate Mycoplamsa bovis was a difficult call.

Milking cluster milks runner-up award

DeLaval has come away with the runner up prize in this year’s Fieldays Online innovation competition with a new milking cluster that eliminates the need for conventional liner changes.

Glow worms to cows

Thomas Lundman's work focus has gone from tracking tiny critters in pitch black caves to looking after considerably larger animals in paddocks near Whakatane.

» Latest Print Issues Online

The Hound

Spell check

Your old mutt was not surprised to see the NZ Dairy Industry Awards hastily remove the title of this year’s…

About time!

Your canine crusader has been a long-time critic of NZ governments – of all stripes – who, for the past…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter