News Release 17 May 2010

Rural Property Market Remains Slow And Inactive

The rural property market remains constrained with no significant rise in either prices or farm sales in the latest market statistics for the three months to April released today by the Real Estate Institute of New Zealand (REINZ).

“Though there have been lots of inquiries the slow inactive market continues as buyers are being very cautious,” says Real Estate Institute of New Zealand (REINZ) President Peter McDonald.

The national median farm sale price rose to $1,000,000 for the three months to April 2010, fractionally up on the median of $970,000 for the three months to March 2010, but still down on the February figure of $1,045,000.

The total number of farms sold in the three months to April was 267, almost the same as the 266 in the same period last year but well down on the 786 farms sold in the three months to April 2008.

Though it is effectively the last month in the dairy farm sales season, only 12 dairy farms sold in April and the median price for the three month period fell from $3,600,000 at the end of March to $3,550,000. The average price per hectare for the April dairy farm sales was just $34,766, a further decline on the March average of $36,905, and the February average of $43,970. And the average sale price per kilogram of milk solids fell to $36 from $42 in March and $47 in February.

On a regional basis the largest number of farm sales during the three months to April was 38 in the Waikato followed by 30 in Manawatu/Wanganui. There were increased sales of grazing properties with 123 sold in the three month period and a rise in the median price to $900,000 from $850,000 at the end of March. There was also an increase in the median price for finishing farms from $953,100 at the end of March to $1,225,000 in the three month period ending in April.

While there was an increase in the sale of lifestyle properties from 1118 at the end of the three months to March to 1167 at the end of the three months to April, the national median selling price remained the same at $440,000. In Auckland the median price for lifestyle properties fell from $735,000 to $706,000 but on the West Coast it increased from $166,000 to $202,000. On an annual basis there has been no increase in the median price of lifestyle properties and they remain down on the $455,000 median price at the end of the three months to April 2008.

ENDS

REINZ_Rural_Market_Statistics_Report__April_2010.pdf

For more real estate information and market trends data, visit www.reinz.co.nz. For New Zealand's most comprehensive range of listings for residential, lifestyle, rural, commercial, investment and rental properties, visit www.realestate.co.nz - REINZ's official property directory website.

Explanatory Note:
The information provided by the Real Estate Institute in relation to the rural and lifestyle real estate market covers a three month period. Therefore references to April results refer to the period from 1 February – 30 April 2010 and references to March refer to the period from 1 January - 31 March 2010.

Rural Regional Highlights – April 2010
Northland
The information provided by the Real Estate Institute in relation to the rural and lifestyle real estate market covers a three month period. Therefore references to April results refer to the period from 1 February – 30 April 2010 and references to March refer to the period from 1 January - 31 March 2010.

The median farm price in Northland increased to $680,000 in April (March 2010: $580,000; April 2009: $520,000). 25 farms sold (March 2010: 15; April 2009: 19). The 25 farms sold consisted of 12 grazing, seven horticulture, two each forestry and finishing and one each arable and dairy.
At $310,000 the median price for a lifestyle block was down in April (March 2010: $320,000; April 2009: $319,000). 83 lifestyle blocks sold during the period (March 2010: 87; April 2009: 100).

Auckland
The information provided by the Real Estate Institute in relation to the rural and lifestyle real estate market covers a three month period. Therefore references to April results refer to the period from 1 February – 30 April 2010 and references to March refer to the period from 1 January - 31 March 2010.

The median farm price in Auckland increased to $922,500 in April (March 2010: $632,500; April 2009: $790,000). 14 farms sold (9 grazing, four horticulture and one dairy). (March 2010: 8; April 2009: 19).

The number of lifestyle blocks sold increased to 225 in April (March 2010: 210; April 2009: 181). The median price decreased to $706,000 in April (March 2010: $735,000; April 2009: $705,000).

Waikato
The information provided by the Real Estate Institute in relation to the rural and lifestyle real estate market covers a three month period. Therefore references to April results refer to the period from 1 February – 30 April 2010 and references to March refer to the period from 1 January - 31 March 2010.

38 farms (20 dairy, 15 grazing and one each arable, finishing and special) sold in April, up on the 33 sold in March (April 2009: 30). The median price was down at $1,985,000 in April (March 2010: $2,000,000; April 2009: $2,140,000).

137 lifestyle blocks sold in April, up on the 120 sold in March. The median price decreased slightly to $446,000 (March 2010: $447,500). In April 2009, 136 lifestyle blocks sold with a median price of $419,000.

Bay of Plenty
The information provided by the Real Estate Institute in relation to the rural and lifestyle real estate market covers a three month period. Therefore references to April results refer to the period from 1 February – 30 April 2010 and references to March refer to the period from 1 January - 31 March 2010.

The median price for a farm was down at $922,500 in April (March 2010: $950,000; April 2009: $915,000). 26 farms (20 horticulture, three grazing, two dairy and one forestry) sold in April, up from the 20 sold in March (April 2009: 27).

85 lifestyle blocks sold in April (March 2010: 78; April 2009: 93). The median price decreased to $475,000 (March 2010: $487,500; April 2009: $475,000).

Gisborne
The information provided by the Real Estate Institute in relation to the rural and lifestyle real estate market covers a three month period. Therefore references to April results refer to the period from 1 February – 30 April 2010 and references to March refer to the period from 1 January - 31 March 2010.

Lifestyle block sales volume remained the same as last month with six sold (March 2010: six; April 2009: 12). The median price increased to $400,063 from March’s $323,000 (April 2009: $311,000).

Hawkes Bay
The information provided by the Real Estate Institute in relation to the rural and lifestyle real estate market covers a three month period. Therefore references to April results refer to the period from 1 February – 30 April 2010 and references to March refer to the period from 1 January - 31 March 2010.

The median farm price decreased to $1,410,000 in April, down from $1,475,000 in March (April 2009: $1,322,500). 12 farms sold (March 2010: 11; April 2009: 12) consisting of seven grazing, three finishing and one each dairy and horticulture.

56 lifestyle blocks sold in April, down from the 58 sold in March. The median price was down at $419,000 (March 2010: $457,500). In April 2009, 47 lifestyle blocks sold with a median sale price of $415,000.

Taranaki
The information provided by the Real Estate Institute in relation to the rural and lifestyle real estate market covers a three month period. Therefore references to April results refer to the period from 1 February – 30 April 2010 and references to March refer to the period from 1 January - 31 March 2010.

The median farm price in Taranaki was down at $1,200,000 in April, from $1,251,550 in March (April 2009: $1,257,500). 21 farms (15 grazing, five dairy and one forestry) sold in April (March 2010: 18; April 2009: 22).

52 lifestyle blocks sold in April (March 2010: 46; April 2009: 56). The median price dipped to $396,000 in April (March 2010: $398,500; April 2009: $381,000).

Manawatu/Wanganui
The information provided by the Real Estate Institute in relation to the rural and lifestyle real estate market covers a three month period. Therefore references to April results refer to the period from 1 February – 30 April 2010 and references to March refer to the period from 1 January - 31 March 2010.

30 farms (16 grazing, six finishing, three dairy, two each forestry and horticulture and one special) sold in April (March 2010: 25; April 2009: 24). The median price increased to $930,000 from March’s $900,000 (April 2009: $945,000).

The median price for a lifestyle block increased to $292,500 in April (March 2010: $286,250; April 2009: $311,000). In total 103 lifestyle blocks sold, down one on the 104 sold in March (April 2009: 93).

Wellington
The information provided by the Real Estate Institute in relation to the rural and lifestyle real estate market covers a three month period. Therefore references to April results refer to the period from 1 February – 30 April 2010 and references to March refer to the period from 1 January - 31 March 2010.

The median farm price in Wellington increased to $1,012,500 in April, from $848,200 in March (April 2009: $1,800,000). Four farms (March 2010: five; April 2009: nine) consisting of two each finishing and grazing.

69 lifestyle blocks sold in April (March 2010: 68; April 2009: 77). The median price decreased to $400,000 from $405,000 in March (April 2009: $480,000).

Nelson/Marlborough
The information provided by the Real Estate Institute in relation to the rural and lifestyle real estate market covers a three month period. Therefore references to April results refer to the period from 1 February – 30 April 2010 and references to March refer to the period from 1 January - 31 March 2010.

The median farm price dropped to $800,000 in April (March 2010: $850,000; April 2009: $583,750). The number of farm sales rose to 10 (five grazing, two each dairy and special and one horticulture). (March 2010: seven; April 2009:16).

53 lifestyle blocks sold in April, down one on the 54 sold in March 2010 (April 2009: 62). The median price increased to $525,000 (March 2010: $465,000; April 2009: $558,500).

West Coast
The information provided by the Real Estate Institute in relation to the rural and lifestyle real estate market covers a three month period. Therefore references to April results refer to the period from 1 February – 30 April 2010 and references to March refer to the period from 1 January - 31 March 2010.

The median price for a lifestyle block was up at $202,000 (March $166,000; April 2009: $147,000). 13 lifestyle blocks sold in April (March 2010: 16; April 2009: 11).

Canterbury
The information provided by the Real Estate Institute in relation to the rural and lifestyle real estate market covers a three month period. Therefore references to April results refer to the period from 1 February – 30 April 2010 and references to March refer to the period from 1 January - 31 March 2010.

29 farms (14 grazing, six finishing, four special, two each arable and forestry, and one South Island HC Merino) sold in April, down two on the 27 sold in March (April 2009: 33). The median dropped to $1,500,000 (March 2010: $1,825,000; April 2009: $1,050,000).

176 lifestyle blocks sold, compared with 174 sold in March. The median price increased to $432,500 from $422,000 in March. In April 2009, 218 lifestyle blocks sold with a median price of $420,000.

Otago
The information provided by the Real Estate Institute in relation to the rural and lifestyle real estate market covers a three month period. Therefore references to April results refer to the period from 1 February – 30 April 2010 and references to March refer to the period from 1 January - 31 March 2010.

The median farm price dipped to $758,750 in April, from $787,500 in March (April 2009: $1,250,000). 28 farms sold (March 2010: 17; April 2009: 25). The farms sold consisted of 10 each of finishing and grazing, three special, two horticulture, and one each arable, dairy and forestry.

65 lifestyle blocks sold in April (March 2010: 57; April 2009: 51). The median price remained the same at $380,000 as in March (April 2009: $399,000).

Southland
The information provided by the Real Estate Institute in relation to the rural and lifestyle real estate market covers a three month period. Therefore references to April results refer to the period from 1 February – 30 April 2010 and references to March refer to the period from 1 January - 31 March 2010.

Farm sales increased with 21 farms (10 grazing, five finishing, three dairy, two arable and one special) sold in April (March 2010: 19; April 2009: 16). The median price decreased to $815,000 in April (March 2010: $900,000; April 2009: $1,766,000).

44 lifestyle blocks sold in April, compared with 40 sold in March. The median price was up at $343,500 (March 2010: $333,250). In April 2009, 41 lifestyle blocks sold with a median price of $295,000.

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