176 farms were sold in November; prices per hectare rise for dairy, fall for all other types

There were 176 farms sold in New Zealand in November, the highest number for a November since 2007.

40 of them were dairy farms, also the highest number for a November since 2007.

The average price per hectare for these dairy farm sales was $40,023 the highest level ever on a national basis.

The dairy farm sales were driven by Waikato demand. But it is Canterbury where the top prices are being paid, especially for irrigated units. In fact, the median Canterbury dairy farm went for a remarkable $51,199 per hectare.

REINZ Rural Spokesman Brian Peacocke said "Prices across the board for dairy properties have firmed, with a clear emphasis on quality and location."

The REINZ Dairy Farm Price Index rose by 4.2% in the three months to November compared to the three months to October, from 1,772.0 to 1,845.9.  Compared to November 2012 the REINZ Dairy Farm Price Index rose by 2.6%.  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.

‘Spectacular’ prices have been paid for select properties in prime locations, particularly in the main dairying areas of Waikato, Taranaki, Canterbury and Southland, the REINZ said.

However, they say price resistance from some purchasers is now an emerging issue at the upper end of the market.

Areas such as Rotorua/Taupo, Northland and Otago are experiencing a strong increase in activity as those seeking a higher return on investment and first farm buyers focus on regions where lower prices prevail.

Demand for land suitable for dairy conversion in the South Island continues to put pressure on supply, with dairy support properties being pushed further into fringe areas.

Demand for good sheep and beef properties is strong in Hawkes Bay, Canterbury, Otago and Southland, particularly in the 5,000 – 10,000 su range. Prices generally range from $7,000 - $10,000 per hectare, with values as high as $15,000 - $23,000 per hectare at the top end of the finishing/grazing market.

The horticultural market in Auckland, Bay of Plenty and Marlborough continues at a steady level.

November sales included: 

    9 arable farms,
  40 dairy farms,
  38 finishing units,
  72 grazing properties,
  13 horticultural,
    4 farms of other types

The number of sales is presented here, without the average price, because average prices bounce around dramatically depending on the size and type of business unit being sold. However, the following table sets out the median prices per hectare over the past three months, as reported by REINZ.

You can find current farms for sale and listed on the market here.

for more perspectives, see

- Exchange rates
- Commodity prices
- Farm cost indexes
- Interest rate trends
- Rural credit aggregates
- Farm sales activity
- Farms for sale
- International dairy prices

for saleyard and processor price trend graphs, see

- lamb
- beef
- deer
- velvet