NZ farm prices rise in February
BUSINESSDESK: New Zealand farm prices extended their gains in the latest rolling three month period ending in February as higher production offset a softening in the prices achieved for locally produced raw materials.
The median price for all farms rose to $21,641 per hectare in the three months ended Feb. 29, up from $20,299 per hectare in the period ending in January, and higher than the $21,266 per hectare a year ago, according to Real Estate Institute figures. The number of sales fell to 351 in the period from 354 in the three months ended Jan. 30, but was up from 204 in 2011.
“Buyers remain focused on grazing, fattening, and dairy properties with indications of a shortage of listings coming through due to the number of transactions that have taken place over the past few months,” REINZ rural market spokesman Brian Peacocke said in a statement. “Morale in the rural sector remains high, with the impact of lower product prices being offset by the increase in production from one of the best growing seasons experienced for many years.”
The price of New Zealand’s locally produced raw materials was unchanged last month, according to the ANZ Commodity Price Index. Commodity prices surged to new record highs last year due to burgeoning demand in developing Asian economies.
Lifestyle property sales rose to 1,243 in the rolling three-month period from 1,231 in the January period, and up from 930 sales a year earlier. The national median price fell to $465,000 in the February period from $465,000 in the three months ended Jan. 31. The median price was $435,500 in the 2011 February period.