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More farms change hands in December than any month since April 2008; prices per hectare stable

More farms change hands in December than any month since April 2008; prices per hectare stable

There was a big rise in farm sales in December.

250 were sold in the month, the highest level since April 2008 and the highest December level since the records available to us.

A big reason for the rise was the 62 dairy farms sold in the month, with sales especially strong in Taranaki.

The REINZ Dairy Farm Price Index rose by 5.3% in the three months to December compared to the three months to November, from 1,845.9 to 1,943.4.  Compared to December 2012 this index rose by 10.1%.  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.

The average price per hectare for dairy farms in Canterbury was another record high at $52,377/ha. Nelson dairy farm prices also reached a record high on $/ha basis. (the highest ever dairy land prices were recorded in Taranaki in June 2010 at $59,342/ha).

Another feature was a strong lift in the drystock sector with 54 finishing property sales and 98 grazing property sales, 38% more than for the same month a year earlier, with Manawatu/Wanganui and Otago being the stand out regions.

"The results for the three months to the end of December reflect strong confidence in the rural sector, with a further lift in sales volumes compared to three months ending November”, says REINZ Rural Spokesman Brian Peacocke.

“The combination of incremental price increases and ongoing demand for quality properties is a sign that these positive trends will continue into 2014.”


$/ha - December 2013   Arable Dairy Finishing Forestry Grazing Hort Special
                 
New Zealand   22,723 38,267 21,289 5,000 16,308 141,134 26,478
                 
Northland     13,162 10,800 4,439 9,588 20,575  
Auckland     29,724 38,673   18,975 189,048 375,548
Waikato   54,878 43,902 20,193   31,426 148,333 9,471
Bay of Plenty     28,040     25,371 164,781  
Gisborne   10,085   7,844   5,000 104,305 1,261
Hawkes Bay   9,018   10,298   10,624 95,238  
Taranaki   74,122 40,079 148,162   42,094   86,376
Manawatu/Wanganui   15,123 20,011 19,394   7,769   80,712
Wellington   2,288   7,905 20,418 10,485 122,222  
Nelson     27,778   3,450 6,989 142,341 100,000
West Coast     9,513     5,917    
Canterbury   41,155 52,377 25,277   22,488 39,965  
Otago   19,199 32,026 11,245 5,000 10,674   23,702
Southland     38,095 24,587   26,953   15,170

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

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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2 Comments

Okay, so where are the numbers for how many of them sold into foreign hands?

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December data is not available yet.

 

Check this website for details: http://www.linz.govt.nz/overseas-investment/decisions

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