Rural sales still rising despite recent dip

Despite a recent dip in rural property sales, the Real Estate Institute said there is still an overall upward trend.

REINZ has reported a 38% rise in rural sales over the last quarter compared to the same period last year.

There were 265 farm sales in the three months to August 2011 with the median price per hectare $15,148, compared to $14,649 in the three months to July 2011 and $16,968 for the three months to August 2010.

Although there was a 12% drop in the number of sales from the three months to July, 1,003 farms were sold in the 12 months to August this year, the first time since October 2009 that the annual number of sales has exceeded 1,000.

The Bay of Plenty, Hawkes Bay, Wellington and Nelson recorded increases in sales volume for the three months to August, with only Waikato and Canterbury recording significant falls in the number of sales.

“Sales figures in August continue to reflect the peak seasonal workload for farmers at this time of year,” said REINZ rural market spokesman Brian Peacocke.

“Farmer returns remain solid with an expectation for commodity prices to hold or in some cases firm slightly as the season progresses. We are also seeing enquiry emerging for quality properties with an expectation of lower availability in the early stages of spring, until a clearer indication of pricing has emerged.”

For the three months to August the median sales price her hectare for dairy farm eased back $1,800 per hectare to $31,050 compared to the three months ending July.

The lifestyle property market also saw an easing in the number of sales in the three months to August 2011 compared to the three months to July.

The national median price eased $9,000 from $453,000 for the three months to July to $444,000 for the three months to August. Compared to the three months to August 2010 the median price increased by $7,250.

“Sales for August in the lifestyle market, while down from the peak in May this year are sill well above the number of sales for the same period last year,” said Mr Peacocke.

“The continuing easing in the median price is consistent with the trends in the rural and residential property markets, where sales volume increases are occurring but prices are either trending sideways or easing.”