Sales of working farms slowed sharply in September with only 77 units changing hands, 25% less than the same month a year ago

Sales of working farms slowed sharply in September with only 77 units changing hands, 25% less than the same month a year ago

The number of farms sold in September fell to a 19 month low. Only 77 units changed hands compared with 103 in the same month a year ago, and an average of 90 for a September over the previous four years.

In fact only two dairy units sold in September, one in Southland and one in Canterbury.

The median selling price per hectare for dairy units fell to a recent low of just $19,604 for the three months to September.

Overall, sales numbers were especially low for all types of farms, although grazing units held up best.

The real estate industry is noting that there is a serious shortage of farms listed for sale and this will keep the trading numbers low for some time yet.

“Unsettled weather and market conditions have put a dampener on the early spring rural real estate market,” says REINZ Rural Market Spokesman Brian Peacocke.  “Cold, wet conditions have impacted on feed supplies and production resulting in increased ‘on farm’ stress.”

“We are seeing strong demand for quality dairy and larger sheep and beef farms, but the shortage of listings is a serious constraint on buyers.  Whilst we are expecting more properties to come to market during October and November, the anticipated increase is unlikely to be sufficient to meet the increasing demand.”

September sales included:

    4 arable farms, at an average per hectare of $25,629 (July was $24,025)

    2 dairy farms, at an average per hectare of $19,604 ($24,492)

  16 finishing units, at an average per hectare of $22,468 ($20,941)

  40 grazing properties, at an average per hectare of $11,444 ($11,297)

    8 horticultural, at an average per hectare of $141,968 ($130,000)

    7 farms of other types

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