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New Zealand Farm Sales Begin Year on Cautious Note
Farm prices and sales in New Zealand began the year on a seemingly cautious note according to the January Real Estate Institute of New Zealand rural report. The January national median farm price was $1,160,000, up on the January 2006 figure of $1,135,000 but down on the strong December month figure of $1,425,000.
Sales reverted to their usual low January level with 140 sales compared with 145 in January 2006, well down on the busy December figure of 210 transactions. However on a year on year basis the four main categories are showing good increases, the REINZ National President Murray Cleland said.
The Dairy median price was up from $2,465,000 in January 2006 to $2,972,000 in January 2007, while the Finishing property price was up from $1,070,000 in January a year ago to $1,200,000 in
January 2007.
The Grazing property median was showing good gains from $850,000 in January 2006 to $955,000 in the latest month, while the Horticulture median price was up from $1,025,000 to $1,242,500 for the same period.
Things were rather more confused in the lifestyle sector with an apparently big drop in the median price on a quite large fall in sales.
The lifestyle median price was down from December’s $450,000 to $415,000 in January, largely due to a drop in sales from 621 in December to 534 in January 2007, closer to the January 2006 sales figure of 487 properties.
According to Mr Cleland, “lifestyle property prices tend to move around a bit when the sales figures decline and probably not too much should be read into the January figures, especially given the very strong performance of lifestyle property prices in 2006, which comfortably outperformed the residential property market.”
Looking ahead into 2007 Mr Cleland said that while there were clouds on the horizon for the rural sector including the continued strength of the dollar and falling sheep meat prices, “the rural sector has had a great run in recent years and if the strength of prices, especially dairy farm prices, is anything to go buy then this should be another pretty strong year for rural real estate”.
Rural Regional Highlights – January 2007
Northland
The median price for a farm in Northland eased to $360,000 in January from $1,550,000 in December and $725,000 in January 2006. In total, 15 farms sold, one more than the 14 sold in December and three more than the 12 sold in January 2006. The 15 farms sold consisted of eight grazing, four dairy, two horticulture and one forestry farm.
The median price for a lifestyle block eased to $345,000 in January from $370,000 in December.
Sales turnover also eased with 55 lifestyle blocks changing hands in January, down on the 71 sold in December. In January 2006, 55 lifestyle blocks sold with a median sales price of $255,000.
Auckland
The median farm price in Auckland increased to $997,500 during January, up on December’s median price of $827,500 (January 2006: $1,940,000). Sales volume was also up, with 14 farms (13 grazing, one horticulture) sold during the month, two more than the 12 sold in December and six more than the eight sold in January 2006.
In total, 74 lifestyle blocks sold in January, well down on the 113 sold in December, but up on the 66 that sold in January last year. Despite the easing sales, the median sales price increased to reach $752,500 during the month (December 2006: $680,000; January 2006: $702,500).
Waikato
16 farms (five finishing, five grazing, four dairy, one each arable and horticulture) sold in the Waikato in January, down on the 28 sold in December. The median sales price attained also eased to $1,761,000 from $1,950,000 in December. In January 2006, 15 farms sold with a median price of $1,300,000.
Lifestyle block sales dipped during the month with 60 sold, nine less than the 69 sold in December and nine more than the 51 sold in January last year. The median sales price attained also eased slightly to $418,500 from $462,000 in December (January 2006: $325,000).
Bay of Plenty
The median price for a farm in this region increased to $1,725,000 in January, well up on December’s median price of $900,000 and January 2006’s median price of $1,025,000. In total, eight farms (three horticulture, two grazing, two dairy and one forestry) sold during the month, one less than the nine sold in December and six less than the 14 sold in January 2006.
In total, 32 lifestyle blocks sold in the region in January, 12 less than the 44 sold in December.
The median sales price eased to $485,000 during the month, down on December’s median price of $587,500. In January 2006, 34 lifestyle properties sold with a median price of $465,000.
Gisborne
Five farms (four horticulture, one grazing) sold in the Gisborne region in January (December 2006: four; January 2006: four). The median sales price achieved eased to $767,500 in January, down on December’s median price of $937,500 (January 2006: $1,297,000).
Lifestyle block sales were steady in January with three sold; the same as in December (January 2006: 11). The median sales price also increased substantially from $280,000 in December to $610,000 in January (January 2006: $365,000).
Hawkes Bay
The median price for a farm in the Hawkes Bay eased to $1,200,000 in January from $1,410,000 in December (January 2006: $1,135,000). In total, seven farms (four horticulture, three grazing) sold during the month, up on the five and six farms sold in December 2006 and January 2006 respectively.
In total, 18 lifestyle blocks sold in this region in January, slightly down on the 25 sold in December, but up on the 17 sold in January 2006. The median sales price achieved on the 18 sales improved to reach $519,500, up from $430,000 in December and $490,000 in January 2006.
Taranaki
The median price for a farm in the Taranaki decreased to $1,270,000 in January, from $1,420,000 in December and $2,010,000 in January 2006. Sales volume was also down, with 12 farms sold during the month (December 2006: 21; January 2006: 13). The 12 farms sold consisted of six grazing, four dairy, and one each arable and special farms.
In total, 18 lifestyle properties sold in this region in January, four less than the 22 sold in December and four more than the 14 sold in January 2006. The median sales price attained decreased during the month to $305,250 from $432,500 in December 2006 and $308,793 in January 2006.
Manawatu/Wanganui
In total, six farms sold in this region in January, well down on the 24 sold in December, and one less than the seven sold in January 2006. The six farms sold consisted of three grazing and one each dairy, arable and forestry farms. The median sales price attained eased from $1,237,500 in December to $610,000 in January (January 2006: $1,000,000).
The median price for a lifestyle block rose to $340,000 in January, from $273,125 in December and $306,562 in January 2006. In total, 48 lifestyle blocks sold during the month, down on the 56 sold in December, but up on the 39 sold in January 2006.
Wellington
The median price for a Wellington farm eased to $575,000 in January from $757,188 in December and $2,250,000 January 2006. Sales volume also decreased with four grazing farms sold during the month, down on the ten sold in December, but up on the single farm sale achieved in January 2006.
A total of 32 lifestyle blocks sold in Wellington in January (December 2006: 28; January 2006: 27).
The median sales price attained on the 32 sales eased slightly to $397,500 in January from $405,750 in December (January 2006: $381,000).
Nelson/Marlborough
The median price for a farm in this region eased to $1,310,000 in January, down from $1,450,000 in December and up on January 2006’s median price of $950,000. In total, just four farms (three grazing, one forestry) sold during the month, well down on the 17 sold in December (January 2006: four).
In total, 27 lifestyle blocks sold in January, down on the 39 sold in December, but up on the 23 sold in January 2006. The median sales price attained increased to $550,000 in January, from $523,000 in December and $415,000 in January 2006.
West Coast
Two grazing farms sold on the West Coast in January (December 2006: two; January 2006: one).
The median sales price eased to $1,065,000 from $1,925,000 in December 2006 and $780,000 in January 2006.
The median price for a lifestyle block in this region increased to $136,500 in January from $127,000 in December. In total, 13 lifestyle blocks changed hands in January, up on the seven sold in December.
In January 2006, nine lifestyle blocks sold with a median sales price of $160,000.
Canterbury
In total, 15 farms sold in Canterbury in January, down on the 31 sold in December and the 28 sold in January 2006. The 15 farms sold consisted of seven finishing, four grazing, two dairy and one each arable and special. The median sales price attained eased to $1,230,000 in January from $1,850,000 in December and $1,313,500 in January 2006.
In total, 100 lifestyle blocks sold in this region in January, six more than the 94 sold in December, and four less than the 104 sold in January last year. The median sales price achieved also improved to reach $436,250 up from $396,250 in December and $290,000 in January 2006.
Otago
The median sales price for a farm in Otago eased to $1,115,000 in January, from $1,450,000 in
December (January 2006: $560,000). Sales turnover increased though with 16 farms sold, up on the 13 sales that were recorded in both December 2006 and January 2006. The 16 farms sold consisted of nine grazing, five finishing and two special farms.
In total, 34 lifestyle blocks sold in the region in January, up on the 25 and 20 sold in December 2006 and January 2006 respectively. The median sales price achieved on the 34 sales eased from $405,000 in December to $355,000 in January (January 2006: $290,000).
Southland
16 farms (ten finishing, three grazing and one each dairy, horticulture and special) sold in Southland in January, down on the 20 farms sold in December, and three less than the 19 sold in January 2006.
The median sales price attained on the 16 sales eased to $1,160,000 in January, from $1,247,500 in December (January 2006: $930,000).
The median price for a lifestyle block eased to $275,000 in January, from $285,000 in December
(January 2006: $225,000). In total, 20 lifestyle blocks changed hands in January, down on the 25 sold in December, and up on the 17 sold in January 2006.
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