Dairy farm sales are still at low levels, and this could be because of tough lending conditions rather than weak buyer interest according to the latest data from the Real Estate Institute of New ZealandThere were only 33 dairy farms sold in the three mont
Dairy farm sales are still at low levels, and this could be because of tough lending conditions rather than weak buyer interest according to the latest data from the Real Estate Institute of New Zealand
There were only 33 dairy farms sold in the three months to January, down from 40 the same time last year and 156 two years ago.
In the three months to January 33 dairy farms were sold, but only seven of these transactions took place in January itself which is usually a busy time in the dairy farm sale market.
Real Estate Institute of New Zealand president Peter McDonald said that was “alarming”.
“[January] is normally a prime time for selling dairy farms,” Mr McDonald said.
In total, 208 farms were sold in the three months to December including 33 dairy farms and 91 grazing farms. The same time last year a total 305 farms were sold, down from 732 the year before.
The value of farms sold held steady at an average of $1 million in the three months to January, down from $1.52 million last year and $1.79 million the year before.
Tough lending conditions could be to blame for the low number of sales, Mr McDonald said.
“There is confidence amongst buyers in the rural sector and a lot of interest in farms but there appears to be a distinct lack of confidence from lenders.”
