Wednesday, 22 January 2020 10:40

Farm sales start to look up

Written by  Staff Reporters
Farm sales increased by 22.3% in the three months ended December 2019 compared to the three months ended November 2019. Farm sales increased by 22.3% in the three months ended December 2019 compared to the three months ended November 2019.

Farm sales were down 21.6% for the three months ended December 2019 versus the year prior ­— but sales look to be lifting.

Data released today by the Real Estate Institute of New Zealand (REINZ) shows that farm sales increased by 22.3% in the three months ended December 2019 compared to the three months ended November 2019, with 345 and 282 sales respectively. 

The lift follows a fall in the year ending December 2019: 1,266 farms were sold in 2019, 15.8% fewer than 2018, with 41.6% less dairy farms, 2.8% less Grazing farms, 31.4% less finishing farms, and 10.8% less arable farms sold.

The median price per hectare for all farms sold in the three months to December 2019 was $38,152 compared to $40,589 recorded for three months ended December 2018 (-6.0%). 

The median price per hectare decreased by 3.8% compared to November 2019.  

Five of the 14 regions recorded an increase in the number of farm sales for the three months ended December 2019 compared to the three months ended December 2018 with the most notable being Auckland (+12) and West Coast and Otago (both +5). 

Waikato recorded the most substantial decline in sales (-32 sales) followed by Northland and Southland (both -16 sales). 

Compared to the three months ended November 2019, nine regions recorded an increase in sales with the biggest increase being in Manawatu/Wanganui (+23), Waikato (+19) and Taranaki (+7 sales). 

“Whilst sales volumes for the 3-month period ending December 2019 were down significantly on the equivalent period 12 months ago, there was nevertheless a distinct improvement on the previous 3-month period ending November 2019,” says REINZ Rural Spokesman, Brian Peacocke.

REINZ Rural Spokesman, Brian Peacocke.

“Of particular significance was the lift in dairy farm sales in the Waikato, from 2 per month for October and November to 11 for December 2019.

“Modest gains were also recorded in the finishing and horticulture sectors, with a strong lift in volume in the grazing sector during the month of December.

“Product prices remained strong leading into the Christmas/New Year holiday period, with increasingly optimistic forecasts emerging for the milk payout in the dairy sector.

“There is little evidence of change in the market-suppressing stance from the majority of the trading banks where it would appear one bank in particular is enjoying the benefit of leaving the shop door open.

“Whilst rural morale is generally good, a mood of caution exists relating to the forthcoming summer dry period, and huge sympathy is evident as New Zealand farmers empathize with their fire-ravaged Australian counterparts,” says Peacocke. 

More like this

Shift in farm sales, prices

Farm sales are on the rise. According to recent data from the Real Estate Institute of New Zealand (REINZ), there was an 18.9% increase in farm sales for the three months ending August 2024 compared to the same period in 2023.

Buyers hunting for right farm

It could be that buyers are hunting out the right farm to purchase as farm sales drop for the three months ended December 2023. That’s according to the Real Estate Institute of New Zealand (REINZ).

Buyers influence rural market

Recently released data from the Real Estate Institute of New Zealand (REINZ) shows there were 77 fewer farm sales for the three months ended November 2023 than for the three months ended November 2022.

Change in govt could boost farm sales

Recent data from the Real Estate Institute of New Zealand (REINZ) shows October was another month in which there were fewer farm sales than at the same time in 2022.

Featured

Trial shows benefits of spring nitrogen use

A landmark New Zealand trial has confirmed what many farmers have long suspected - that strategic spring nitrogen use not only boosts pasture growth but delivers measurable gains in lamb growth and ewe condition.

Eric Roy: Championing the pork industry

It was recently announced that former MP and Southland farmer Eric Roy has stepped down of New Zealand Pork after seven years. Leo Argent talks with Eric about his time at the organisation and what the future may hold.

National

Machinery & Products

JDLink Boost for NZ farms

Connectivity is widely recognised as one of the biggest challenges facing farmers, but it is now being overcome through the…

New generation Defender HD11

The all-new 2026 Can-Am Defender HD11 looks likely to raise the bar in the highly competitive side-by-side category.

» Latest Print Issues Online

Milking It

Buttery prize

OPINION: Westland Milk may have won the contract to supply butter to Costco NZ but Open Country Dairy is having…

Gene Bill rumours

OPINION: The Gene Technology Bill has divided the farming community with strong arguments on both the pros and cons of…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter