Big drop in the number of farms sold over the last 12 months with dairy farms leading the decline

There has been a significant drop in the number of farms being sold and the selling prices being achieved.

According to the Real Estate Institute of New Zealand, 329 farms throughout the country were sold in the three months to the end of February, down 11.1% compared to the same period 12 months earlier.

Of the farms sold in the three months to the end of February, the median price per hectare was $20,569, down 8.4% from the same period a year earlier.

In the 12 months to the end of February, 1253 farms of all types were sold, 14.8% fewer than in the previous 12 months.

The biggest annual decline was in dairy farm sales -37.0%, followed by finishing farms -27.9%, grazing farms -10.0% and arable farms -9.9%.

The REINZ All Farms Price Index, which adjusts for differences in the size, type and location of farms sold, was down 13.7% in the 12 months to February compared to the previous 12 months.

The REINZ Diary Farm Price Index, which adjusts for differences in dairy farm size and location, was down 9.7% in the 12 months to the end of February compared to the previous 12 months.

The bright spot in the rural property sector appears to be lifestyle blocks.

There were 1769 lifestyle property sales in the three months to the end of February which was up 20.5% compared to the same period a year earlier.

The median price of all lifestyle properties sold throughout the country in the three months to the end of February was $710,000, up $20,000 (+2.9%) compared to a year earlier.

Here is more detail of the monthly farm sales activity.

And this chart tracks monthly farm sales by type. Add each three month set to match the data in this article above.

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