Friday, March 29, 2024

Farm sales activity hits a lull

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Farm sale volumes for the three months to the end of October fell by nearly 100 on the corresponding period a year earlier.
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The extent of the slowdown, caused largely by poor spring weather, was highlighted by the 261 October sales being lower than for the 271 for the three months to September.

The fall from the October period last year was 92, a 26% drop.

The median sale price was $24,982/ha for the latest period, more than 8% down on September and 3.8% lower than October last year.

The Real Estate Institute All-farm Index, which adjusted for difference in farm size, location and type, fell 5.7% September to October but finished 7.3% ahead of October last year, institute rural spokesman Brian Peacocke said.

Twelve of the 14 regions recorded reduced sales, headed by Auckland and Wellington.

There were low sales of dairy farms around the country, just five for October alone, with one of them being at a price close to $70,000/ha in Waikato.

The dairy farm median price for the October period was $40,012/ha, up from $37,812/ha in September and slightly lower than the $40,716/ha in October last year.

The institute’s Dairy Farm Index, which also adjusted for difference in farm size and location, went in the other direction, down 4.4% from September but up 9.2% on October last year.

Finishing farms accounted for the largest number of sales by sector, with 33% of the total over the three-month October period.

The median sale price was $29,057/ha, compared to $30,828/ha in September and up 8% from 26,834/ha for October last year.

Peacocke reported good prices paid for several well-located finishing farms in Canterbury.

The province also had increased arable farm sales activity, including one very strong sale in the Methven area at just over $58,000/ha.

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