Rural market taking a hit
Rural sales and land prices have plummeted over recent months, the Real Estate Institute of New Zealand reports.
Rural sales and land prices have plummeted over recent months, the Real Estate Institute of New Zealand reports.
In the three months up to July 31 there were 301 farm sales, compared to 393 sales in the three months to June 2011 and 262 in the three months to July 2010.
The median price per hectare for all farms sold in the three months to July 2011 was $14,649, compared to $17,901 for the three months to July 2010.
The median price per hectare is now at its lowest point since September 2003 and continues the downward trend in median prices evident since early 2009.
The drop in the number of sales reverses the trend of the past four months, which has seen sales increase from 190 in the three months ended March 2011 to 393 in the three months ended June 2011.
All regions bar one recorded a fall on sales for the three months to July, with Southland, Canterbury and Otago recording the largest number of falls.
“The drop in farm sales for the three months to July reflects the time of year and the focus of farmers on seasonal workloads,” said REINZ rural market spokesman Brian Peacocke.
Farmers are treading with caution due to current financial events.
“Nevertheless, forward enquiry for quality properties remains positive,” he said.
“As we have seen in the past few months most of the sales activity was in the grazing, finishing and dairy support properties, with Canterbury, Otago and Southland once again the most active.”
Nicola Williams
Fri, 12 Aug 2011
Fri, 12 Aug 2011
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Rural market taking a hit
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