Dairy farm prices dropped back in the three months to January but the overall rural property market remains firm

Dairy farm prices dropped back in the three months to January but the overall rural property market remains firm

Horticultural properties were the stand out in the rural property market in the three months to the end of January, but dairy prices eased.

Latest figures from the Real Estate Institute of New Zealand show the average price per hectare of horticultural properties sold in the three months to January was $205,634, compared with $202,308 in the three months to the end December.

That compares with $132,474 per hectare in the three months to January 2014 and just $89,047 per hectare in the three months to January 2013.

There has also been a big increase in the number of horticultural properties sold, with 51 changing hands in the three months ended January compared with 36 in the three months ended January 2014.

The strong rise in prices is believed to have been primarily driven by the recovery of the kiwifruit industry's fortunes.

REINZ said there was strong and ongoing demand for kiwifruit orchards in the Bay of Plenty, with sale prices for both gold and green fruit orchards close to the record levels attained before the outbreak of PSA disease.

However prices for horticultural properties were highest in the Auckland region where they sold for an average $344,157 per hectare.

Overall, prices of rural properties have generally remained firm, and the REINZ All Farm Price Index, which adjusts for differences in farm size, location and type, rose  0.9% on the three months ended January, compared with the three months ended December, although it was down 1.6% compared with the three months ended January last year.

However dairy farm prices have eased, with the REINZ Dairy Farm Price Index dropping 8.6% in the three months ended January compared to the three months ended December.

The average selling price of dairy farms sold in the three months ended January was $40,742 per hectare, compared with $41,227 per hectare in the three months ended December.

Lifestyle blocks continue to sell well, with 1623 selling in the three months ended January, up from 1539 in the three months ended January 2014 and 1504 in the three months ended January 2013.  

To read the REINZ's full Rural Market Report, with the sales figures for all farm types across all regions, click on this link.

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