Farm sales and prices steady overall, dairy farm prices up, but big drops in sales of horticultural and lifestyle blocks, REINZ says

Photo: Amanda Slater

The number of farms being sold is down slightly compared to a year ago, although there has been a more significant drop in sales of lifestyle blocks.

According to the Real Estate Institute of New Zealand, 459 farms were sold in the three months ended June, down 2.8% compared to the same period of last year.

The median price per hectare was $25,993 in the three months to June, down 4.5% compared to the three months to May, but down just 1.4% compared to the three months to June last year.

The REINZ All Farm Price Index, which adjusts for differences in farm size, location and type, was up 4.9% compared to June last year.

On the dairy front, 59 dairy farms were sold in the three months to June compared to 46 over the same period of last year, while the median price per hectare was $34,789, up 6.7% compared to a year earlier.

The median price per kilo of milk solids was $33.45 in the three months to June, up 10% compared to the same period of last year.

The REINZ Dairy Farm Price Index was up 17.7% in June compared to a year earlier.

“Morale throughout the rural sector, wool producers excepted, is being stimulated by the positive outlook for dairy, beef, lamb, venison and horticultural products, and is likely to encourage continuing investment into those land-based industries,” REINZ rural spokesman Brian Peacocke said.

“Record attendance at the recent National Field Days in the Waikato and reports of strong purchasing activity for vehicles and farm machinery were a boost to the economic barometer,” he said.

However there has been a sharp drop in the price and number of horticultural properties sold.

Sixty two horticultural properties were sold in the three months to June compared to 77 in the same period last year, while the median price per hectare dropped to $159,161 in the three months to June, compared to $223,165 in the same period last year (-28.7).

There has also been a sharp decline in sales of lifestyle blocks, with 2,088 sales in the three months to June compared to 2,480 in the same period last year (-15.8%).

The median price was $601,250, up 3.7% compared to a year earlier.