The rural property slump continued in the first quarter, with both the number of farms sold and median selling prices well down on where they were in the first quarter (Q1) last year.
According to the Real Estate Institute of New Zealand, 215 farms of all types were sold throughout the country in Q1 this year.
That was down 13.3% compared to Q1 last year, and down 48% compared to Q1 2022. (See the graph below for the trend).
Prices were also softer, with the median price per hectare in Q1 this year ($25,130), down 15.4% compared to Q1 last year.
"The decline in farm sales is not limited to a single sector," according to the REINZ's latest Rural Report.
"In the year leading up to March 2024, 957 farms were sold, marking a a decrease of 387 sales compared to the previous year.
"This decline is spread across various farming sectors, with dairy farms experiencing a 37.3% reduction, dairy support farms down by 10.9%, grazing farms decreasing by 38.3% finishing farms by 28.3% and arable farms down 2.2%," the report said.
The REINZ All Farm Price Index, which adjusts for differences in the mix of farms sold by size, type and location, was down 8.8% in Q1 this year compared to Q1 last year.
The REINZ Dairy Farm Price Index was down 5.9% in Q1 this year compared to Q1 last year.
"The better than expected farm gate milk price and some positive [Global] Dairy Trade [auction] results hasn't managed to increase sales activity in the dairy sector, as farmers take a cautious approach to farm investment," REINZ rural spokesman Shane O'Brien said.
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3 Comments
Is it time - to paraphrase Mr Buffet - "to be greedy when others are fearful"???
Offer 50% of asking price and see what happens. Had a friend do that last week and they came back with a 40% reduction ready to sign.
Going to get interesting in the next 6 months.
Yep, been watching local market. Nothing much moving, in fact initial offers that were turned down have turned into an even lower price.
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