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 441 farm sales in those three months, compared to 282 farm sales for the same period in 2019.
1,412 farms were sold in the year to November 2020, 9.0% more than were sold in the year to November 2019.
The median price per hectare for all farms sold in the three months to November 2020 was $27,763 compared to $25,190 recorded for the three months ending November 2019.
The REINZ All Farm Price Index fell 1.3% compared to the three months ending November 2019.
Eleven of the 14 regions recorded an increase in the number of farm sales for the three months ended November 2020 compared to the three months ending November 2019, with the most notable being Waikato and Northland.
Otago recorded the most significant decline in sales with Wellington and Gisborne also recording fewer farm sales than 2019.
“Sales data for the three-month period ending November 2020 confirms again that in terms of numbers, finishing properties are clearly the dominant category,” said Brian Peacocke, REINZ rural spokesman.
“The increase in sales volumes throughout the rural sector would indicate the banking sector is beginning to emerge from the deep freeze.”
Finishing farms accounted for the largest number of sales with a 34% share of all sales over the three months to November 2020.
Grazing farms accounted for 26%, Dairy accounted for 10%, and Horticulture accounted for 13% of all sales.
