Farms still selling well in south of NZ

| July 17, 2008 | 0 Comments

drive_0370-150x150The rural property market continued to outpace the residential property market in June with continued strong prices and sales, according to REINZ National Councillor and rural spokesperson for the Institute Mr Peter McDonald.

In particular lifestyle properties featured with a rise in the lifestyle median price from $450,000 in May to $455,000 in June, also up on the June 2007 figure of $450,000, indicating that lifestyle properties are proving to be something of a property ‘hedge’ against the wider malaise in residential property.

The national farm median price was down slightly from $1,860,000 for the three months to May, to $1,805,000 for the three months to June, but the market was nevertheless very strong according to REINZ rural agents.

Sales were down a little as well from 745 to May to 711 to June, but up on the 665 sales for the period to June 2007.

“The rural property market seems to go from strength to strength with the dairy sector continuing to make a major contribution to the buoyancy,” Mr McDonald said today.

Dairy sales were down a little from 147 for the three months to May, to 120 to June, largely as a result of the commencement of the new production season and the end of the traditional ‘window’ for dairy farm sales, between seasons.

The dairy median was down slightly from $4,050,000 for the three months to May to $4,025,000 for the three months to June, but agents reported demand from both existing dairy farmers and city investors remained strong.

“The dairy sector continues to underpin the rural property market but it is not alone in that, with finishing properties and grazing properties also highly sought after,” according to Mr McDonald.

The finishing property median price was up from $2,300,000 to $2,350,000, on sales up from 134 to May to 137 to June.

Grazing properties were also keenly sought with the median up from $1,380,000 to $1,440,000, although sales were down a little from 337 to May to 325 in the latest period, however this was well up on the sales a year ago of 285.

The lifestyle property market was similarly strong with eight of the 14 districts reporting increased median prices, pushing the median for lifestyle properties up from $450,000 in May, to $455,000 in June.

Sales were well down though from 1,335 in the three months to May to 1,177 for the three months to June, nearly half the level of sales for the period to June 2007, of 2,041.

“The strength of lifestyle property prices, despite the big drop in sales, is testimony to the confidence in the rural sector and must be to the envy of city property owners as the weakness in residential prices at present is not evident in the lifestyle property market,” Mr McDonald said.

Horticultural properties were also maintaining their position with the median price up from $950,000 to $985,000, although sales were a little lower at 40 to June, compared with 45 for the period to May.

Two sales of South Island high country Merino properties were also recorded in June, with a median price of $11,035,000.

 

Rural Regional Highlights – June 2008 
Northland

The median farm price in Northland increased to $2,370,000 in June, from $2,200,000 in May (June 2007: $1,250,000). 43 farms sold (May 2008: 46; June 2007: 55). The 43 farms sold consisted of 17 grazing, 13 dairy, eight finishing, three horticulture and one each arable and forestry.

The median price for a lifestyle block rose to $377,000 in June, up from $362,500 in May and $337,500 in June 2007. 114 lifestyle blocks sold during the month (May 2008: 126; June 2007: 177).

Auckland

The median farm price in Auckland reached $2,030,000 in June (May 2008: $1,250,000; June 2007: $1,227,500). 30 farms (19 grazing, seven dairy, four horticulture) sold (May 2008: 29; June 2007: 42).

144 lifestyle blocks sold in June, down on the 165 sold in May and the 410 sold in June 2007. The median price eased to $747,500 in June, from $790,000 in May (June 2007: $842,500).

Waikato

99 farms (46 grazing, 35 dairy, nine finishing, five arable, three special, one horticulture) sold in June (May 2008: 112; June 2007: 66). The median price eased to $2,200,000 from $2,425,500 in May (June 2007: $1,650,000).

138 lifestyle blocks sold in June, down on the 181 sold in May and the 257 sold in June 2007. The median sales price rose to $455,000 from $420,000 in May (June 2007: $425,000).

Bay of Plenty

The median price for a farm dipped to $1,431,750 in May (May 2008: $1,465,000; June 2007: $1,200,000). 44 farms (21 grazing, 12 horticulture, eight dairy, three forestry) sold in June (May 2008: 50; June 2007: 40).

84 lifestyle blocks sold in June, up on the 75 sold in May (June 2007: 153). The median price rose to $533,000 from $510,000 in May (June 2007: $478,000).

Gisborne

14 farms (seven grazing, six horticulture, one finishing) sold in June (May 2008: 15; June 2007: nine). The median price eased to $1,100,000 in June, from $1,200,000 in May (June 2007: $710,000).

Lifestyle block sales increased slightly with nine sold in June (May 2008: eight; June 2007: 19). The median price also rose, reaching $440,000 in June (May 2008: $357,000; June 2007: $425,000).

Hawkes Bay

The median farm price eased to $1,500,000 in June, from $1,525,000 in May (June 2007: $1,250,000). 19 farms sold (May 2008: 22; June 2007: 15). The 19 farms sold consisted of six finishing, five horticulture, four grazing, two arable, one dairy and one special.

46 lifestyle blocks again sold in June (May 2008: 46; June 2007: 83). The median price rose to $530,000 in June from $527,500 in May (June 2007: $490,000).

Taranaki

The median farm price in Taranaki eased to $1,250,000 from $1,507,500 in May (June 2007: $1,300,500). 33 farms (24 grazing, seven dairy, one special, one finishing) sold in June, down on the 48 and 38 sold in May 2008 and June 2007 respectively.

49 lifestyle blocks sold in June, down on the 56 sold in May and the 66 sold in June 2007. The median price eased to $410,000 in June from $418,500 in May (June 20077: $418,500).

Manawatu/Wanganui

69 farms (39 grazing, 13 dairy, nine finishing, six arable and two special) sold in June (May 2008: 62; June 2007: 60).The median price rose to $1,825,000 from $1,742,500 in May (June 2007:$1,063,000).

The median price for a lifestyle block rose to $358,000 in June, from $345,000 in May (June 2007: $330,000). 103 lifestyle blocks sold, down on the 117 sold in May (June 2007: 155).

Wellington

The median price for a Wellington farm rose to $1,220,180 in June (May 2008: $1,185,090; June 2007: $870,000). Nine farms (three grazing, two dairy, one each horticulture, arable, finishing and forestry) sold in June, down on the 12 and 19 sold in May 2008 and June 2007 respectively.

59 lifestyle blocks sold in June (May 2008: 68; June 2007: 114). The median price dipped to $455,000 from $470,000 in May (June 2007: $425,000).

Nelson/Marlborough

The median farm price reached $1,156,500 in June (May 2008: $1,155,000; June 2007: $805,000). 26 farms (13 grazing, six horticulture, four special, one each finishing, forestry and South Island high country merino) sold in June (May 2008: 27; June 2007: 35).

54 lifestyle blocks sold in June, down on the 76 and 93 sold in May 2008 and June 2007 respectively. The median price rose to $530,000 from $477,500 in May and $460,000 in June 2007.

West Coast

14 farms (nine dairy, five grazing) sold in June, one more than the 13 sold in May (June 2007: 18). The median price eased to $2,450,000 from $2,600,000 in May (June 2007: $2,000,000).

The median price for a lifestyle block eased to $189,000 in June, from $212,500 in May (June 2007: $155,000). 20 lifestyle blocks sold in June, one more than the 19 sold in May (June 2007; 18).

Canterbury

132 farms (60 grazing, 26 finishing, 22 arable, 15 special, nine dairy) sold in June (May 2008: 129; June 2007: 109). The median price fell to $1,675,000 (May 2008: $1,800,000; June 2007: $895,000).

209 lifestyle blocks sold, down on the 237 and 329 sold in May 2008 and June 2007 respectively. The median price remained steady at $450,000 in both May and June 2008 (June 2007: $400,000).

Otago

The median farm price eased to $1,712,500 in June, from $1,875,000 in May (June 2007: $1,250,000). 66 farms sold, six less than the 72 sold in May (June 2007: 56). The farms sold consisted of 32 finishing, 23 grazing, four special, three dairy, two horticulture, one forestry and one South Island high country Merino.

88 lifestyle blocks sold in June (May 2008: 90; June 2007: 96). The median price rose to $452,500 from $417,500 in May and $394,375 in June 2007.

Southland

113 farms (44 grazing, 43 finishing, 13 dairy, eight special, four forestry and one arable) sold in June, up on the 108 and 103 sold in May 2008 and June 2007 respectively. The median price eased to $2,150,000 from $2,413,750 in May (June 2007: $1,400,000).

60 lifestyle blocks sold in June, down on the 71 sold in both May 2008 and June 2007. The median price rose to $324,000 in June, from $300,000 in May and $190,000 in June 2007.

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