Plenty of city folk looking for their rural patch of paradise, while farm prices remain solid, according to REINZ figures

Plenty of city folk looking for their rural patch of paradise, while farm prices remain solid, according to REINZ figures

City slickers looking for a slice of rural splendour have helped to drive the prices of lifestyle blocks to record highs, according to new figures out from the Real Estate Institute of New Zealand.

It is the second month in a row that lifestyle block prices have hit a new peak.

The national median price for lifestyle blocks rose by $8,500 (+1.7%) in the three months to January to a new high of $498,500 for the three months to January.

In terms of overall farm sales there were 45 more farm sales (+12.7%) for the three months ended January 2013 than for the three months ended January 2012.

Overall, there were 399 farm sales in the three months to end of January 2013, compared with 382 farm sales in the three months to December 2012, an increase of 17 sales (+4.4%).

Some 1454 farms were sold in the year to January 2013, 18.1% more than were sold in the year to January 2012. The median price per hectare for all farms sold in the three months to January 2013 was $23,980; an 18.1% increase on the $20,299 recorded for three months ended January 2012. The median price per hectare increased by 3.9% compared to December.

The REINZ All Farm Price Index eased by 2.1% in the three months to January compared to the three months to December, from 3,103.88 to 3,039.77. Compared with January 2012 the REINZ All Farm Price Index fell by 3.2%.

Commenting on the lifestyle block figures, REINZ Rural Market Spokesman Brian Peacocke said that compared with the three months to January 2012 the median price rose by $28,500 (+6.1%).

"Activity remains strong around Auckland, and steady across the rest of the North Island. In the South Island activity is healthy in Nelson and Canterbury but weaker in the lower South Island, Peacocke said.

On the overall farm sales figures, seven regions recorded increases in sales volume for the three months ended January 2013 compared with the three months ended January 2012. Nelson recorded the largest increase in sales (+21 sales), followed by Auckland (+19 sales) and Waikato (+17 sales).

Seven regions recorded decreases in sales volume with Canterbury recording the largest fall (-9 sales), followed by Southland (-7 sales) and Bay of Plenty and Otago together with three fewer sales. Compared with the three months ended December 2012 seven regions recorded an increase in sales, lead by Waikato (+14 sales).

"The supply of listings is barely able to keep up with demand with demand for good quality properties outstripping supply," Peacocke said.

"This situation is unlikely to change in the next few months as farmers begin to make commitments for the forthcoming season."

"Northern parts of the country are seeing higher levels of activity on sheep and beef properties, whereas in the South Island the spotlight remains firmly on dairy. Demand for dairy support units is solid in the Canterbury region, but due to dry weather is soft in the Waikato. Viticulture demand remains buoyant in Marlborough where supply and demand are evenly matched."

Grazing properties accounted for the largest number of sales with 44.1% share of all sales over the three months to January. Dairy properties accounted for 20.6%, finishing properties accounted for 17.3% and horticulture properties accounted for 9.0% of all sales. These four property types accounted for 91% of all sales during the three months ended January 2013.

For the three months ended January 2013 the median sales price per hectare for dairy farms was $35,530 (82 properties), compared with $34,483 for the three months ended December (63 properties), and $34,298 (58 properties) for the three months ended January 2012.

The median dairy farm size for the three months ended January 2013 was 98 hectares.

Included in sales for the month of January were 25 dairy farms at a median sale value of $32,000 per hectare. The median farm size was 136 hectares with a range of 52 hectares in Waikato to 464 hectares in Hawkes Bay. The median production per hectare across all dairy farms sold in January 2013 was 1,047kgs of milk solids; the highest ever recorded median production in a calendar month. The REINZ Dairy Farm Price Index fell by 0.9% in the three months to January compared to the three months to December, from 1,765.90 to 1,749.36. Compared to January 2012 the REINZ Dairy Farm Price Index fell by 8.0%.

Among finishing farms the median sales price per hectare was $18,852 (69 properties), compared with $18,852 for the three months ended December (64 properties), and $21,080 (64 properties) for the three months ended January 2012.

The median sales price per hectare for grazing farms was $16,250 (176 properties) compared with $16,511 for the three months ended December (172 properties), and $13,601 (182 properties) for the three months ended January 2012. The median grazing farm size for the three months ended January 2013 was 68 hectares.

Among horticulture farms the median sales price per hectare for horticulture farms was $89,047 (36 properties) compared with $89,139 (34 properties) for the three months ended December, and $140,000 (17 properties) for the three months ended January 2012. The median horticulture farm size for the three months ended January 2013 was nine hectares.

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8 Comments

Good news, now all we need is the heaps of interest in our block to turn unconditional.

I call BS. My experience in North Auckland lifestyle blocks there are many properties that have been on the market unsold for a period of 3-4 years. 50% or more that have been for sale are still unsold. The few sales that happen are those that come down 20% or so to meet the market.

Urbaninzation and lifestlye block are eating up productive agricutural land.
 
I foresee an amendment of some Act happening to prevent that. 
 
For more info.
 

Journal of the Royal Society of New

Zealand

 

Publication details, including instructions for authors and

subscription information:

http://www.tandfonline.com/loi/tnzr20

 

Expansion of lifestyle blocks and urban

areas onto high-class land: an update

for planning and policy

 

R Andrew a & JR Dymond a

a Landcare Research, Palmerston North, New Zealand

Version of record first published: 13 Dec 2012.

Your not the only one foreseeing that; hence part of the reason why prices are going up. 

I don't blame people for going the lifestyle block way. Battery housing the people in small flats and sections is only going to get worse.
 
Just hope the lifestylers realise they have the same responsibilies as farmers. OSH, ACC, Fire fighting and public liability insurance, animal health, NAIT and looking after the soil etc.
 
The number of accidents on lifestyle blocks gets thrown in with the farming accident stats. Yet how many pay the farming ACC levy.

I wonder what NZ's most famous lifestyler 'pdk' thinks about this sprawl of lifestyle properties?
Anyone heard from him lately? Last spotted streaking across Russian skies to the sound of 'bits of the planet' ..........

Yep, Those in the "finite resources" and "they aren't making any more of it" camp ,take note.
NASA reckons about 10,000 tons of new stuff just arrived.

Lifestyle blocks are flooding the market at an unhealthy level above what the market would supply under normal conditions.
 
The councils (especially in Auckland) rating system is inherently flawed with vast ineffeciencies for rural landowners which puts farmers at a huge disadvantage forcing them to sub divide and/or sell down completely.
 
More productive land is falling into unproductive ruch commuter McMansion play pens as it is always the best and most accessable land ie fertile cleared clean farmland, that falls into lifestyle blocks.
 
The hidden cost here is the displacement of family owned farms that can't keep facing the ever increasing rate hikes that for medium/small farms can total some tens of thousands easily. 

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