The September number was 388, a 15% lift on the 337 of a year earlier. In the three months to the end of August there were 393 sales.
Dairy farm sales continued to be scarce, with just 12 reported for the latest three months, down from an also low 14 in the August period, according to Real Estate Institute of New Zealand (REINZ) figures.
This time of year is typically quiet for farm sales, with farmers just getting past the busy lambing and calving period.
September had been a month of appraisals ahead of anticipated marketing programmes being launched in the October to December months, REINZ rural spokesman Brian Peacocke said.
“Volatility of prices for rural produce has been a frustration for many, but the counter-balancing factor for all, including the keenly focused banking sector, has been that, in the main, signals from the marketplace have been positive as opposed to the more pessimistic outlook of 12 months ago.”
The median price per hectare for all farms sold in the September period was $26,825, up from $26,020 a year earlier. This was a 3% lift.
The REINZ All Farm index, which adjusts for differences in farm size, location and farming type, rose 9.6% over the year.
The median price for finishing farms over the year rose 5.6% to a September figure of $26,834/ha over 74 sales, compared to $25,414/ha for 65 sales. The August figure had been slightly higher at $27,208.
Grazing properties contributed the most sales, at 41% of the September total, ahead of horticulture 21%, finishing farms 19%, and arable 9%.
Grazing farms had a slightly lower median price, down 3.9% compared to a year earlier, $15,339/ha with 158 sales, down from $15,966 on 152 sales.
There was a jump in horticulture farm sales, to 82 from 58 a year earlier and the median price was $177,726/ha compared to $166,652. In the August period, the median price was $190,338.
Peacocke warned the low number of dairy farm sales over the September periods meant it was easy for index figures to be distorted.
The Dairy Farm Index was 18.3% higher than in the September period last year, and 2.4% ahead of the latest August three-month period.
“Volatility of prices for rural produce has been a frustration for many, but the counter-balancing factor for all, including the keenly focused banking sector, has been that, in the main, signals from the marketplace have been positive.”
Brian Peacocke
REINZ
On a median price basis, dairy farms were at $33,132/ha for the 12 sales, up from $25,108 from 11 sales a year earlier. The median price gain year-on-year was 32%.
However, the September median price was lower than the $40,469/ha registered in the latest August period from 14 sales.
Nine regions had an increase in sales year-on-year, headed by Nelson (plus 14 sales), Southland (13), and Bay of Plenty and Otago (plus 12 each).
In Southland, benefiting from an excellent winter and spring, activity levels were increasing, with good levels of quality listings but a clear value divergence between vendors and buyers.
Northland beef units were also achieving good activity levels, especially in the start-up range of $6500 to $7000/ha, and there was a surge in sales of land suitable for avocado growing, Peacocke said.
He reported “simmering” early spring activity in Auckland and Waikato, ahead of a larger number of properties expected on the market from October onwards.
Wet weather through Rotorua and Taupo had delayed the start of the selling season, but there was a positive mood in the market, and a large number of farms were expected on the market in Taranaki after virtually no activity during September.
In the South Island, there was good inquiry for sheep and beef farms in northern areas, but few listings. Similarly there was good demand in the central South Island, with sales to adjoining landowners but also inquiry from further afield.
There was a build-up of listings of finishing and grazing farms in Otago, Peacocke said.
