The rural property sector is still suffering according to the latest data from the Real Estate Institute of New Zealand, with dairy farms struggling the most.Only 241 farms sold in the three months to the end of 2009, down from 346 during the same period
The rural property sector is still suffering according to the latest data from the Real Estate Institute of New Zealand, with dairy farms struggling the most.
Only 241 farms sold in the three months to the end of 2009, down from 346 during the same period in 2008 and 753 in the three months to December 2007.
The number of dairy farms sold in December took a big dive to only 30 sales from 43 the same time last year.
Prices also plummeted, with the national medium average for the three months to December at $1 million, down from $1.52 million in 2008 and $1.65 million in 2007.
The Canterbury region was the most active for sales, with thirty dairy farms sold in the area between October and December.
Waikato had 28 dairy farms change hands in the final three months of last year.
Demand is much tighter in the Canterbury region. Real estate listings website realestate.co.nz has 120 dairy farms in the Waikato area but only 48 in the Canterbury region.
In the Taranaki region six dairy farms sold, three were sold in Otago and seven sold in Southland during the three months to December.
Real Estate Institute of New Zealand president Peter McDonald said stricter lending policies had affected dairy farm transactions.
“Tightening up of the rural finance sector due to the economic climate has impacted the ability of the young farmer to graduate to farm ownership in the traditional way – by purchasing a farm and then building on their investment,” Mr McDonald said.
He added that the majority of sales had been grazing blocks. “December is normally a peak time for dairy farm sales.”
