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).
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.
Two major red meat sector projects are getting up to a combined $1.7 million in funding from the New Zealand Meat Board (NZMB).
Angus Barr and Tara Dwyer of The Wandle, Lone Star Farms in Strath Taieri have been named the Regional Supreme Winners at the Otago Ballance Farm Environment Awards in Dunedin.
OPINION: The distress that the politicians and bureaucrats are causing to the people of Wairoa and the wider Tairāwhiti is unforgivable.
Dairy
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.
Telco infrastructure provider Chorus says that it believes all Kiwis – particularly those in the rural areas – need access to high-speed, reliable broadband.
OPINION: Talking about plant-based food: “Chicken-free chicken” start-up Sunfed has had its valuation slashed to zero by major investor Blackbird…
OPINION: Synlait's financial woes won’t be going away anytime soon.