Friday, March 29, 2024

Land sales reflect positive mood

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Another rise in sales volume of rural property shows a positive mood prevails throughout the rural sector, Real Estate Institute spokesman Brian Peacock says.
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Most of the activity was outside the dairy sector, possibly accounting for a fall in the median price/hectare from $23,980 to $22,664 though that was also influenced by a $2000/ha drop in dairy land prices.

Grazing properties accounted for the largest number of sales with 42.2% share of all sales in the three months to the end of January.

Finishing properties accounted for 21.1%, dairy for 22.5% and horticulture for 6.4% of all sales.

“Most regions are seeing solid demand for dairy, dairy support and sheep and beef properties,” Peacocke said.

“The dairy farm market in Canterbury has reached a plateau where the demand for very good properties has been driven mainly by local buyers.” There was evidence of some syndicates capitalising on the extensive development work they had done, releasing shareholders into the buying pool for smaller properties.

The beef and sheep market was strong in Otago but the shortage of listings was a constraint though sellers of dairy and dairy support properties in adjoining regions had added strong momentum to the marketplace.

“Steady demand for dairy farms has been the driving factor in Southland but the prevailing shortage of sheep and beef properties is resulting in buyers focusing further north,” he said.

A strong top end market in Waikato had resulted in strengthening inquiry in the lower-priced categories though a hint of caution was emerging as dry conditions prevail in central Waikato.

There was also a continuing steady market in the lower North Island and strong inquiry for dairy support properties in Nelson/Marlborough, indicating a shortage of listings.

In the three months to the end of January there were 165 more farm sales (+41.4%) than for the three months ended January 2013.

Overall, there were 564 farm sales in the three months to end of January compared to 554 farm sales for the three months ended December 2013 (+1.8%).

In the year to the end of January 1794 farms were sold, 23.3% more than were sold in the year to January 2013, the largest number of sales in a 12-month period since February 2009.

January sales were up 35 in Otago, 31 in Southland and 27 in Taranaki.

 

Dairy Farms

For the three months ended January 2014 the median sales price/ha for dairy farms was $36,509 (127 properties) compared to $38,267, for the three months ended December (121 properties) and $35,530 (82 properties) for the three months ended January 2013.

The median dairy farm size for the three months ended January 2014 was 123ha.

January sales included 25 dairy farms at a median sale value of $22,634/ha. The median farm size was 138ha with a range of 42ha in Waikato to 495ha in Manawatu/Wanganui.

The median production/ha across all dairy farms sold in January was 639kg MS.

 

Finishing Farms

For the three months ended January the median sale price/ha for finishing farms was $20,720 (119 properties) compared to $21,289 for the three months ended December (111 properties) and $18,852 (69 properties) for the three months ended January 2013.

The median finishing farm size for the three months ended January 2014 was 106ha.

 

Grazing Farms

For the three months ended January 2014 the median sales price/ha for grazing farms was $13,995 (238 properties) compared to $16,308 for the three months ended December (237 properties) and $16,250 (176 properties) for the three months ended January 2013.

The median grazing farm size for the three months ended January was 84ha.

 

Horticulture Farms

For the three months ended January 2014 the median sales price/ha for horticulture farms was $132,474 (36 properties) compared to $141,134 (36 properties) for the three months ended December and $89,047 (36 properties) for the three months ended January 2013.

The median horticulture farm size for the three months ended January was six hectares.

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