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Rural Real Estate market ends 2013 on positive note

News Release: 24 January 2014

Rural Real Estate market ends 2013 on positive note

Data released today by the Real Estate Institute of NZ (REINZ) shows there were 292 more farm sales (+20.1%) for the three months ended December 2013 than for the three months ended December 2012.

Overall, there were 554 farm sales in the three months to end of December 2013, compared to 414 farm sales for the three months ended November 2013 (+33.8%).  1,746 farms were sold in the year to December 2013, 20.1% more than were sold in the year to December 2012, the largest number of sales in a 12 month period since February 2009.

The median price per hectare for all farms sold in the three months to December 2013 was $24,163 compared to $23,070 recorded for three months ended December 2012 (+4.7%).  The median price per hectare rose 0.4% compared to November. 

The REINZ All Farm Price Index rose by 1.2% in the three months to December compared to the three months to November, from 3,218.3 to 3,256.1.  Compared to December 2012 the REINZ All Farm Price Index rose by 4.9%.  The REINZ All Farm Price Index adjusts for differences in farm size, location and farming type compared to the median price per hectare, which does not adjust for these factors.

10 regions recorded increases in sales volume for the three months ended December 2013 compared to the three months ended December 2012.  Otago recorded the largest increase in sales (+32 sales), followed by Southland (+30 sales) and Waikato (+25 sales).  Four regions recorded decreases in sales volume with Nelson recording the largest fall (-17 sales), followed by West Coast (-2 sales), and Auckland and Gisborne with one sale less each.  Compared to the three months ended November 2013, 12 regions recorded an increase in sales.

“The results for the three months to the end of December reflect strong confidence in the rural sector, with a further lift in sales volumes compared to three months ending November”, says REINZ Rural Spokesman Brian Peacocke, “The combination of incremental price increases and ongoing demand for quality properties is a sign that these positive trends will continue into 2014.”

Noteworthy points include: -

> A very healthy market for dairy properties with 121 sales for the three months ended December and an increase of 52 sales on the three months ended November, this being the result of activity in Northland, Waikato, Taranaki and Canterbury.
> A strong lift in the drystock sector with 111 finishing property sales and 237 grazing property sales, giving increases of 29 and 57 respectively for the months ended December, comapred to the three months ended November, Manawatu/Wanganui and Otago being the stand out regions.
> Continuing steady horticulture sales in the Bay of Plenty.

Grazing properties accounted for the largest number of sales with 42.8% share of all sales over the three months to December, Finishing properties accounted for 20.0%, Dairy Properties accounted for 21.8% and Horticulture properties accounted for 6.5% of all sales.  These four property types accounted for 91.2% of all sales during the three months ended December 2013.

Dairy Farms
For the three months ended December 2013 the median sales price per hectare for dairy farms was $38,267 (121 properties), compared to $40,023, for the three months ended November (69 properties), and $34,483 (63 properties) for the three months ended December 2012.  The median dairy farm size for the three months ended December 2013 was 112 hectares.

Included in sales for the month of December were 62 dairy farms at a median sale value of $36,933 per hectare.  The median farm size was 112 hectares with a range of 47 hectares in Taranaki to 370 hectares in Northland.  The median production per hectare across all dairy farms sold in December 2013 was 909 kgs of milk solids.

The REINZ Dairy Farm Price Index rose by 5.3% in the three months to December compared to the three months to November, from 1,845.9 to 1,943.4.  Compared to December 2012 the REINZ Dairy Farm Price Index rose by 10.1%.  The REINZ Dairy Farm Price Index adjusts for differences in farm size and location compared to the median price per hectare, which does not adjust for these factors.

Finishing Farms
For the three months ended December 2013 the median sale price per hectare for finishing farms was $21,289 (111 properties), compared to $19,696 for the three months ended November (82 properties), and $18,852 (64 properties) for the three months ended December 2012.  The median finishing farm size for the three months ended December 2013 was 96 hectares.

Grazing Farms
For the three months ended December 2013 the median sales price per hectare for grazing farms was $16,308 (237 properties) compared to $17,364 for the three months ended November (180 properties), and $16,511 (172 properties) for the three months ended December 2012.  The median grazing farm size for the three months ended December 2013 was 69 hectares.

Horticulture Farms
For the three months ended December 2013 the median sales price per hectare for horticulture farms was $141,134 (36 properties) compared to $142,341 (39 properties) for the three months ended November, and $89,139 (34 properties) for the three months ended December 2012.  The median horticulture farm size for the three months ended December 2013 was five hectares.

Lifestyle Properties
The lifestyle property market saw a 4.3% (+69 sales) increase in sales volume in the three months to December 2013 compared to December 2012.  1,687 sales were recorded in the three months to December 2013 compared to 1,618 sales in the three months to December 2012.  32 more sales were recorded compared to the three months to November 2013 (+1.9%).  For the 12 months to December 2013 there were 6,591 unconditional sales of lifestyle properties, an increase of 13.8% (+797 sales) over the 12 months to December 2012.

Nine regions recorded increases in sales compared to December 2012 while five recorded decreases in sales.  Northland recorded the largest increase (+51 sales), followed by Auckland (+39 sales) and Wellington (+23 sales).  Compared to November 2013, nine regions recorded an increase in sales with four regions recording decreases. 

The national median price for lifestyle blocks rose by $30,000 (+6.1%) from $490,000 for the three months to December 2012 to $520,000 for the three months to December 2013 to reach a new record high.  Canterbury, Manawatu/Wanganui and Waikato all recorded new record highs for the three months to December.   The median price for lifestyle blocks in Auckland rose by 12.1% in the year to December 2013 to $817,500.  The median price rose by 11.0% in Waikato to $510,000, and by 16.7% in Canterbury to $595,000. Compared to November 2013 the median price rose by $20,000 (+4.0%) from $500,000 in November to $520,000 in December.

The number of days to sell for lifestyle properties improved by three days, from 62 days for the three months to the end of November to 59 days for the three months to the end of December.  Compared to the three months ended December 2012 the number of days to sell improved by two days from 61 days to 59 days.  Taranaki recorded the shortest number of days to sell in December at 30 days, followed by Gisborne at 31 days and Auckland at 46 days.  West Coast recorded the longest number of days to sell at 241 days, followed by Bay of Plenty at 108 days and Hawkes Bay at 89 days.

Commenting on the lifestyle property market Brian Peacocke said, “A positive aspect if the lifestyle market is the steady increase in sales numbers over the past six months, with 1,687 sales for the three months ended December, moving close to the peak volumes seen earlier this year.”

“The national median price of $520,000 reaching a new high and is an indication of the current healthy market activity, with Northland, Taranaki, Nelson/Marlborough and Southland all experiencing increases in sales volumes.”
ENDS

© Scoop Media

 
 
 
 
 
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