Farm sales continued to decline in May, as buyers kept their cash in their pockets.
The latest rural sales figures from the Real Estate Institute of New Zealand (REINZ) show that 258 farms of all types were sold nationally over the three months to the end of May, down 39% compared to the same period of last year.
REINZ rural spokesman Shane O'Brien said the decline in sales had been evident throughout this year.
O'Brien said many buyers were taking a wait and see approach against a backdrop of higher interest rates, increased farm expenses and lower farm incomes off the back of adverse weather and challenging economic conditions.
"Many agents are reporting continued enquiry from buyers, but many are not committing to land purchases yet," O'Brien said.
"While no one factor is causing the reduction in sales, the culmination of these along with an uncertain outcome in this year's general election is creating caution in many areas," he said.
The dramatic downturn in sales has affected all farm types, with dairy farm sales down 47% over the three months to May compared to the same period of last year, while finishing farm sales were down 50%, grazing farm sales were down 30% and horticultural property sales were down a whopping 64%.
Prices have also eased, with the REINZ All Farm Price Index, which adjusts for differences in the mix of properties sold by farm size, location and type, declining by 5.5% over the 12 months to the end of May.
Dairy farm prices fared better, with the REINZ Diary Farm Price Index increasing by 1.6% over the 12 months to the end of May.
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