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Latest REINZ statistics show rising volumes of farm sales and rising prices

Latest REINZ statistics show rising volumes of farm sales and rising prices

There's rising confidence in the rural sector with rising numbers of farms being sold at rising prices, according to the latest Real Estate Institute figures.

Our review of the July data is here »

Here's REINZ's full news release:

Data released by the Real Estate Institute of NZ (“REINZ”) shows there were 82 more farm sales (+23.0%) for the three months ended July 2013 than for the three months ended July 2012.  Overall, there were 438 farm sales in the three months to end of July 2013, compared to 474 farm sales for the three months ended June 2013 (-7.6%).  1,536 farms were sold in the year to July 2013, 6.7% more than were sold in the year to July 2012. 

The median price per hectare for all farms sold in the three months to July 2013 was $20,667; a 15.1% increase on the $17,955 recorded for three months ended July 2012.  The median price per hectare rose 4.8% compared to June. 

The REINZ All Farm Price Index rose by 2.1% in the three months to July compared to the three months to June, from 2,892.4 to 2,953.0.  Compared to July 2012 the REINZ All Farm Price Index rose by 4.6%.  The REINZ All Farm Price Index adjusts for differences in farm size, location and farming type compared to the median price per hectare, which does not adjust for these factors.

Nine regions recorded increases in sales volume for the three months ended July 2013 compared to the three months ended July 2012.  Waikato recorded the largest increase in sales (+25 sales), followed by Auckland (+23 sales) and Bay of Plenty (+13 sales).  Four regions recorded decreases in sales volume with Wellington recording the largest fall (-7 sales), followed by Manawatu/Wanganui and West Coast (-2 sales) and Gisborne (-1 sale).  Compared to the three months ended June 2013 six regions recorded an increase in sales, lead by Bay of Plenty (+10 sales).

“Ideal late winter and early spring conditions, combined with solid payout predictions for primary produce have raised levels of confidence in the rural sector”, says REINZ Rural Spokesperson Brian Peacocke, “Demand for quality farms is strong across the entire country and in most regions, early signs indicate a shortage of supply for the spring selling season.”

“Calving activity reduced sales of dairy farms in July, but sales of finishing and grazing properties have remained at healthy levels in the top half of the North Island as well as in Canterbury, Otago and Southland regions.  Sales for other farm types have remained light.”

“Activity has remained strong in Southland for all farm types, with particular demand for properties with soils that are capable of sustainable wintering.  There is strong interest in grazing properties, particularly dairy and dairy support properties in Otago.  The proposed irrigation schemes in Canterbury and Hawkes Bay are also generating interest in those regions.”

Grazing properties accounted for the largest number of sales with 44.1% share of all sales over the three months to July, Dairy properties accounted for 10.7%, Finishing properties accounted for 24.9% and Horticulture properties accounted for 8.9% of all sales.  These four property types accounted for 88.6% of all sales during the three months ended July 2013.

Dairy Farms

For the three months ended July 2013 the median sales price per hectare for dairy farms was $34,882 (47 properties), compared to $29,555, for the three months ended June (66 properties), and $22,679 (29 properties) for the three months ended July 2012.  The median dairy farm size for the three months ended July 2013 was 147 hectares.

Included in sales for the month of June were 10 dairy farms at a median sale value of $35,713 per hectare.  The median farm size was 149 hectares with a range of 64 hectares in Waikato to 525 hectares in Hawkes Bay.  The median production per hectare across all dairy farms sold in July 2013 was 861kgs of milk solids.

The REINZ Dairy Farm Price Index rose by 2.2% in the three months to July compared to the three months to June, from 1,738.9 to 1,777.1.  Compared to July 2012 the REINZ Dairy Farm Price Index rose by 12.2%.  The REINZ Dairy Farm Price Index adjusts for differences in farm size and location compared to the median price per hectare, which does not adjust for these factors.

Finishing Farms

For the three months ended July 2013 the median sale price per hectare for finishing farms was $22,500 (109 properties), compared to $18,672 for the three months ended June (92 properties), and $23,028 (71 properties) for the three months ended July 2012.  The median finishing farm size for the three months ended July 2013 was 50 hectares.

Grazing Farms

For the three months ended July 2013 the median sales price per hectare for grazing farms was $15,367 (193 properties) compared to $13,831 for the three months ended June (228 properties), and $13,023 (190 properties) for the three months ended July 2012.  The median grazing farm size for the three months ended July 2013 was 56 hectares.

Horticulture Farms

For the three months ended July 2013 the median sales price per hectare for horticulture farms was $100,667 (39 properties) compared to $120,345 (42 properties) for the three months ended June, and $130,000 (29 properties) for the three months ended July 2012.  The median horticulture farm size for the three months ended July 2013 was six hectares.

Farm sales

Select chart tabs

New Zealand
Source: REINZ
Arable
Source: REINZ
Dairy
Source: REINZ
Finishing
Source: REINZ
Forestry
Source: REINZ
Grazing
Source: REINZ
Horticulture
Source: REINZ

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