Softening tone to rural real estate

There were 13 fewer farm sales for the three months ended June 2017 than for the three months ended June 2016 according to data released by the Real Estate Institute of NZ.

Overall, there were 459 farm sales in the three months ended June 2017, compared to 514 farm sales for the three months ended May 2017 and 472 farm sales for the three months ended June 2016.

The median price per hectare for all farms sold in the three months to June 2017 was $25,993 compared to $26,361 recorded for the three months ended June. The median price per hectare fell 4.5 per cent compared to May.

The REINZ All Farm Price Index fell 2.5 per cent in the three months to June 2017 compared to the three months to May 2017. Compared to June 2016 the REINZ All Farm Price Index rose 4.9 per cent. The REINZ All Farm Price Index adjusts for differences in farm size, location and farming type, unlike the median price per hectare, which does not adjust for these factors.

Eight regions recorded increases in sales volume for the three months ended June 2017 compared to the three months ended June 2016. Otago recorded the largest increase in sales (+13 sales), followed by Gisborne (+9 sales) and Southland (+7 sales).

Brian Peacocke, rural spokesman at REINZ, says the easing in farm sales volumes is in line with similar late autumn/early winter periods in recent years as farmers focus on wintering activities and the season ahead.

"Morale throughout the rural sector, wool producers excepted, is being stimulated by the positive outlook for dairy, beef, lamb, venison and horticultural products, and is likely to encourage continuing investment into those land-based industries.

“Record attendance at the recent National Field Days in the Waikato and reports of strong purchasing activity for vehicles and farm machinery were a boost to the economic barometer for the country and a further reflection of increasing confidence within the rural sector.”

There were 392 fewer lifestyle property sales for the three months ended June 2017 than for the three months ended June 2016. Overall, there were 2088 lifestyle property sales in the three months ended June 2017, compared to 2304 lifestyle property sales for the three months ended May 2017 and 2480 lifestyle property sales for the three months ended June 2016.

Lifestyle property sales were 8520 to June 2017, 447 fewer than were sold in the year to June 2016. The value of lifestyle properties sold was $6.63 billion for the year to June 2017.

The median price for all lifestyle properties sold in the three months to June 2017 was $601,250 and was $21,250 higher compared to the three months ended June 2016.

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