And the boost provided by high milk prices is offset by red meat sector issues, rising interest rates and some buyer resistance to high prices.
But sales were up 40% on the corresponding three months the previous year.
Solid volumes of farm sales in the three months to February 28 reflected continuing confidence in the rural sector, Real Estate Institute rural spokesman Brian Peacocke said.
“The recent increase in the Fonterra payout has both widened the smiles of those within the dairy industry and provided a genuine boost to the regional and national economies.
“However, across the country there is an underlying tone of caution due to the issues within the red meat sector, the impact of the semi-drought in significant areas of the North Island and the emerging reality of interest rate increases in the short to medium term future,” he said.
There had been strong sales activity in Waikato resulting in a shortage of properties for sale.
The market for kiwifruit orchards was very strong for both green and gold in the Te Puke area with values for top properties doubling in the last 12 months.
A buoyant dairy market in the Central Plateau lifted some values by 10% to 20%.
There was genuine interest in well farmed properties in Hawke’s Bay where demand outstripped supply.
Continuing strong demand in Taranaki meant most available properties had been sold.
A quiet market in Nelson-Marlborough was partly because of dry weather with anticipation of an exceptional harvest in the viticulture sector.
There was buyer caution in Canterbury because of the impact of the regional water plan but prices were still strong with sales of cropping and grazing properties exceeding vendor expectations.
Buyers were active on the West Coast though decision making was slower.
Otago had an extremely strong market for sheep and beef properties, partly because of a shortage of listings and buyer resistance emerging at current price levels.
It had been a good season and a busy market in Southland with strong focus on dairy support and finishing properties. Corporate buyers were still active there.
Throughout the country there were 155 more farm sales (+40.9%) for the three months ended February than for the three months ended February 2013.
There were 534 farm sales in the three months ended February 28 and 564 farm sales for the three months ended January 31 (-5.3%).
In all 1829 farms were sold in the year to February 2014, 26.6% more than were sold in the year to February 2013, the largest number of sales in a 12-month period since February 2009.
The median price per hectare for all farms sold in the three months to February 2014 was $22,644 compared to $21,951 recorded for three months ended February 2013 (+3.2%).
All regions recorded increases in sales volume for the three months ended February 2014 compared to the three months ended February 2013.
Otago and Taranaki both recorded the largest increase in sales (+28) followed by Northland (+16), Bay of Plenty and Southland (+15).
Grazing properties accounted for the largest number of sales with a 39.9% share of all sales over the three months to February, finishing properties accounted for 21.9%, dairy properties 23% and horticulture properties 6.7%.
Dairy farms
For the three months ended February 2014 the median sales price/ha for dairy farms was $34,499 (123 properties), compared to $36,509, for the three months ended January (127 properties) and $33,254 (77 properties) for the three months ended February 2013. The median dairy farm size for the three months ended February 2014 was 123ha.
Included in sales for February were 36 dairy farms at a median sale value of $34,766/ha. The median farm size was 121ha with a range of 60ha in the Auckland region to 454ha in Otago. The median production/ha across all dairy farms sold in February 2014 was 986kg MS.
Finishing farms
For the three months ended February 2014 the median sale price/ha for finishing farms was $20,720 (117 properties), compared to $20,720 for the three months ended January (119 properties) and $19,029 (71 properties) for the three months ended February 2013. The median finishing farm size for the three months ended February 2014 was 79ha.
Grazing farms
For the three months ended February 2014 the median sales price/ha for grazing farms was $14,444 (213 properties) compared to $13,995 for the three months ended January (238 properties) and $12,900 (169 properties) for the three months ended February 2013. The median grazing farm size for the three months ended February 2014 was 83ha.
Horticulture farms
For the three months ended February 2014 the median sales price/ha for horticulture farms was $133,125 (36 properties) compared to $132,474 (36 properties) for the three months ended January and $118,371 (30 properties) for the three months ended February 2013. The median horticulture farm size for the three months ended February 2014 was 6ha.
