There has been a big drop in the number of farms being sold, particularly dairy farms, although prices are mostly steady.
The latest rural sales figures released by the Real Estate Institute of NZ show that 383 farms throughout the country were sold in the three months to the end of March, compared with 474 in the three months to February, 425 in the three months to March last year and 472 in the three months to March 2014.
The downturn in sales was even more dramatic for dairy farms, with just 48 sales in the three months to March compared to 76 in the three months to February, 86 in the three months to March last year and 102 in the three months to March 2015.
The REINZ All Farm Price Index, which adjusts for differences in farm type, size and location, dropped 1.7% in the three months to March compared to the three months to February, but was up 1.7% compared to the three months to March 2015.
The REINZ Dairy Farm Price Index rose 4.3% in the three months to March compared to February, but was down 15.9% compared to a year earlier.
Horticultural properties and lifestyle blocks continue to be the stars of the rural property market, with both showing continuing gains in the number of sales and horticultural properties also showing big price gains.
Sixty four horticultural properties were sold in the three months to March, up 45% compared to two years ago, while the median price per hectare increased by 71% to $261,665 over the same period.
And lifestyle block sales continued to increase with 2,135 selling in the three months to March, which is up by a third compared to two years ago.
"Figures for the three month period ending March 2016 indicate an easing in sales volumes for most categories of rural property with the exception of horticulture, sales for which confirm the sector is in very good heart," REINZ rural spokesman Brian Peacocke said.
"In general terms the dairy sector is subdued but isolated sales of good quality farms at very good prices, often to neighbouring interests, do reflect optimism in the longer term future of the industry.
"Enquiry continues for good beef finishing properties, but due to the absorption of that class of land into the dairy industry in recent years, there is insufficient supply to cater for the demand," he said.
There were only 148 sales recorded in the month of March 2016, as follows:
13 arable farms,
21 dairy farms,
29 finishing units,
51 grazing properties,
28 horticultural,
6 farms of other types
More details can be found here.
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