More farms change hands in December than any month since April 2008; prices per hectare stable

There was a big rise in farm sales in December.

250 were sold in the month, the highest level since April 2008 and the highest December level since the records available to us.

A big reason for the rise was the 62 dairy farms sold in the month, with sales especially strong in Taranaki.

The REINZ Dairy Farm Price Index rose by 5.3% in the three months to December compared to the three months to November, from 1,845.9 to 1,943.4.  Compared to December 2012 this index rose by 10.1%.  The REINZ Dairy Farm Price Index adjusts for differences in farm size and location compared to the median price per hectare, which does not adjust for these factors.

The average price per hectare for dairy farms in Canterbury was another record high at $52,377/ha. Nelson dairy farm prices also reached a record high on $/ha basis. (the highest ever dairy land prices were recorded in Taranaki in June 2010 at $59,342/ha).

Another feature was a strong lift in the drystock sector with 54 finishing property sales and 98 grazing property sales, 38% more than for the same month a year earlier, with Manawatu/Wanganui and Otago being the stand out regions.

"The results for the three months to the end of December reflect strong confidence in the rural sector, with a further lift in sales volumes compared to three months ending November”, says REINZ Rural Spokesman Brian Peacocke.

“The combination of incremental price increases and ongoing demand for quality properties is a sign that these positive trends will continue into 2014.”