NZ rural farm sales surge 109% in March quarter
Rural farm sales surged in the March quarter to the highest level in a three-month period since September 2008, the start of the global financial crisis.
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BUSINESSDESK: Rural farm sales surged 109% in the March quarter to the highest level in a three-month period since September 2008, the start of the global financial crisis.
The number of farms sold rose to 397 in the three months ended March 31 from 190 sales a year earlier, says the Real Estate Institute of New Zealand.
The median price per hectare for all farms sold rose 14.1% to $17,577.
“Sales over the three months to March reflect the strengthening of the rural economy, bolstered by favourable growing conditions, very good levels of production, solid market returns and a positive climate for borrowing,” REINZ rural market spokesman Brian Peacocke said.
All regions, apart from the Hawke's Bay, recorded an increase in sales in the March quarter compared with a year earlier.
Canterbury showed the largest increase, up 39 sales, followed by Waikato on 38, while the Hawke's Bay dropped four.
“Irrespective of the above, a note of caution is clearly emerging as the industry prepares for winter, with the expectation that income levels may moderate next season, and, given seasonal variabilities, it is unlikely the combination of current benevolent factors will be repeated for some time to come,” Mr Peacocke said.
Grazing properties accounted for the largest increase in sales, up 59.9% over the three months. The median sale price for a grazing farm rose to $15,696 a hectare from $13,220 in March 2011.
The lifestyle property market increased its sales by 42.4% to 1347.
Hannah Lynch
Wed, 18 Apr 2012
Wed, 18 Apr 2012
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NZ rural farm sales surge 109% in March quarter
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