Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Rural Market Maintains Autumn Momentum

News Release 18 May 2017

Rural Market Maintains Autumn Momentum

Summary

Data released today by the Real Estate Institute of NZ (“REINZ”) shows there were 66 more farm sales (+16.2%) for the three months ended April 2017 than for the three months ended April 2016. Overall, there were 473 farm sales in the three months ended April 2017, compared to 438 farm sales for the three months ended March 2017 (+8.0%), and 407 farm sales for the three months ended April 2016. 1,815 farms were sold in the year to April 2017, 5.0% more than were sold in the year to April 2016, with 20% more dairy farms and 11% fewer grazing farms sold over the same period.

The median price per hectare for all farms sold in the three months to April 2017 was $28,368 compared to $30,000 recorded for three months ended April 2016 (-5.4%). The median price per hectare rose 3.1% compared to March.

The REINZ All Farm Price Index rose 1.1% in the three months to April 2017 compared to the three months to March 2017. Compared to April 2016 the REINZ All Farm Price Index rose 5.9%. The REINZ All Farm Price Index adjusts for differences in farm size, location and farming type, unlike the median price per hectare, which does not adjust for these factors.

10 regions recorded increases in sales volume for the three months ended April 2017 compared to the three months ended April 2016. Waikato recorded the largest increase in sales (+29 sales), followed by Otago (+17 sales) and Taranaki (+13 sales). Compared to the three months ended March 2017, eight regions recorded an increase in sales.

“Sales figures for the three month period ending 30 April 2017 confirm confidence in the rural sector, with a significant lift in volumes from 12 months ago”, says REINZ Rural Spokesman Brian Peacocke, “The continuation of high rainfall during April has been a major boost for farmers in many regions around the country but has proved to be a problem in other areas with considerable flooding and interruption of seasonal harvesting.”

“Dairy sector morale moves in tandem with the strengthening milk price, albeit volatility remains an issue, and beef farmers are experiencing strong results, particularly those selling weaner beef cattle in sale-yards around the country. The moist autumn has frustrated some in the arable sector as ground conditions for harvesting maize crops, in particular, has been an issue, with heavy rain washing out some recently re-grassed areas. Such conditions have also been an impediment for parts of the horticulture and viniculture sectors.”

Points of Interest around New Zealand include:

· Northland – a lift in sales numbers for dairy and finishing units, with an emphasis on quality and location; some lower priced dairy units are moving to dairy support or beef; trading banks appear constrained in low equity situations but are supportive where quality balance sheets exist;

· Waikato – steady dairy activity during April with a cluster of sales in the good to medium price range in the Te Awamutu south to Tokoroa districts; reduced activity on finishing and grazing units;

· Bay of Plenty – a continuation of strong sales and high value in the kiwifruit sector; some dairy sales at medium to lower values in the Rotorua and Taupo districts, and an upturn in sales of finishing units in the central to eastern Bay of Plenty;

· Taranaki – an easing of volumes throughout the region after a strong run of sales over recent months; continuing interest in good dairy support and finishing blocks;

· Hawke’s Bay - reasonable activity in the horticulture sector with the inclusion of one reasonable sized vineyard; reduced activity in the other categories;

· Manawatu / Wanganui – lower sales volumes of finishing and grazing units in the central region; quiet on the dairy front and very quiet in the Wanganui district;

· Wellington / Wairarapa – good demand for finishing and arable units at increased values but results constrained by reduced supply;

· Nelson / Marlborough – steady enquiry across the board but limited supply; sales activity registered on finishing, grazing, viticulture and dairy properties, predominantly in the Marlborough district;

· Canterbury – several strong dairy farm sales in mid-Canterbury and strong sales activity on multi-purpose finishing units throughout the province; quiet on the West Coast;

· Otago – strong sales results for finishing units throughout all districts within the province during April; reasonable activity on grazing properties but quiet in the dairy sector; and

· Southland – activity at solid prices in the dairy, finishing and grazing sectors, albeit at reduced volumes; predominantly locally based buyers with a continuation of the trend for neighbours to be active on adjoining properties.

Grazing properties accounted for the largest number of sales with a 31% share of all sales over the three months to April 2017, Dairy properties accounted for 21%, Finishing properties accounted for 26% and Horticulture properties accounted for 13% of all sales. These four property types accounted for 90% of all sales during the three months ended April 2017.

Dairy Farms

For the three months ended April 2017 the median sales price per hectare for dairy farms was $35,186 (98 properties), compared to $37,066 for the three months ended March 2017 (99 properties), and $33,507 (52 properties) for the three months ended April 2016. The median price per hectare for dairy farms has risen 5.1% over the past 12 months. The median dairy farm size for the three months ended April 2017 was 112 hectares.

On a price per kilo of milk solids basis the median sales price was $34.47 per kg of milk solids for the three months ended April 2017, compared to $35.26 per kg of milk solids for the three months ended March 2017 (-2.2%), and $35.00 per kg of milk solids for the three months ended April 2016 (-1.5%).

The REINZ Dairy Farm Price Index rose 0.4% in the three months to April 2017 compared to the three months to March 2017. Compared to April 2016, the REINZ Dairy Farm Price Index rose 10.5%. 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 April 2017 the median sale price per hectare for finishing farms was $25,585 (122 properties), compared to $24,584 for the three months ended March 2017 (83 properties), and $24,657 (80 properties) for the three months ended April 2016. The median price per hectare for finishing farms has risen 3.8% over the past 12 months. The median finishing farm size for the three months ended April 2017 was 51 hectares.

Grazing Farms

For the three months ended April 2017 the median sales price per hectare for grazing farms was $15,079 (146 properties) compared to $16,202 for the three months ended March 2017 (158 properties), and $15,126 (148 properties) for the three months ended April 2016. The median price per hectare for grazing farms has fallen 0.3% over the past 12 months. The median grazing farm size for the three months ended April 2017 was 72 hectares.

Horticulture Farms

For the three months ended April 2017 the median sales price per hectare for horticulture farms was $278,419 (62 properties) compared to $317,726 (49 properties) for the three months ended March 2017, and $244,365 (74 properties) for the three months ended April 2016. The median price per hectare for horticulture farms has risen 13.9% over the past 12 months. The median horticulture farm size for the three months ended April 2017 was seven hectares.

----- ENDS -----

Real Estate Institute of New Zealand

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.

Editor’s Note:

The information provided by REINZ in relation to the rural real estate market covers the most recently completed three month period; thus references to April refer to the period from 1 February 2017 to 30 April 2017.

The REINZ Farm Price Indices have been developed in conjunction with the Reserve Bank of New Zealand. It adjusts sale prices for property specific factors such as location, size and farm type which can affect the median $/hectare calculations and provides a more accurate measure of farm price movements. The REINZ Farm Price Indices has been calculated with a base of 1,000 for the three months ended March 1996. The REINZ Farm Price Indices is best utilised in assessing percentage changes over various time periods rather than trying to apply changes in the REINZ Farm Price Index to specific property transactions.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Economy: COVID-19 Lockdown Has Widespread Effects On Labour Market

In the June 2020 quarter, the seasonally adjusted unemployment rate fell to 4.0 percent, down from 4.2 percent last quarter, while underutilisation rose, Stats NZ said today. More>>

ALSO:

NZ Post: New Research By NZ Post Shows Online Shopping Grew 105% In Alert Level 3

New research by NZ Post into how the COVID-19 response has impacted the way Kiwis shop online, shows online shopping increased 105%* when the country moved into Alert Level 3, and may have changed the way Kiwis shop permanently. Online spend peaked ... More>>

ALSO:

Banking: Westpac NZ Lowers Merchant Fees For Small Businesses

Westpac NZ is rolling out a new merchant fee pricing structure that will lead to cost savings for more than 10,000 small and medium Kiwi businesses, and could make contactless transactions more widely available for customers. On 1 September, most ... More>>

REINZ: Million Dollar Plus Property Sales Increase 11.7% Nationally

The number of properties sold around the country for one million dollars or more during the first half (H1) of 2020 increased by 11.7% compared to H1 2019, with 5,426 million-dollar plus properties sold (up from 4,858 in H1 2019) according to the Real ... More>>

Waste: Government To Regulate Plastic Packaging, Tyres, E-Waste

The Government is stepping up action to deal with environmentally harmful products – including plastic packaging, tyres and e-waste – before they become waste. As part of the wider plan to reduce the amount of rubbish ending up in landfills, ... More>>

ALSO:

Bankers Association: Banking Becomes First Living Wage Accredited Industry

Banking has become New Zealand’s first fully living wage accredited industry, leading to nearly 1800 employees and contractors moving onto the living wage and gaining greater economic independence for them and their families. As of today, all ... More>>

ALSO:


QV Valuations: July House Price Index Illustrates Market Resilience

According to the July 2020 QV House Price Index (HPI) results out today , property values recorded a marginal increase, up 0.2% over the month. This is somewhat of a turnaround from June, after the national index edged 0.2% lower. More>>

ALSO:

Property: Queenstown Rents Experience Biggest Drop In Seven Years

Rental prices in the Queenstown-Lakes district saw the biggest annual percentage drop in seven years after falling 28 per cent on June last year, according to the latest Trade Me Rental Price Index. Trade Me Property spokesperson Aaron Clancy said ... More>>

Seismology: The Quiet Earth

As many daily activities came to a halt during lockdown, the Earth itself became quiet, probably quieter than it has been since humans developed the technology to listen in. Seismologists have analysed datasets from more than 300 international ... More>>

RNZ: James Shaw Says Kiwibank, Not Ministers Should Decide On Investors

Climate Change Minister James Shaw says Kiwibank's decision to stop doing business with companies dealing in fossil fuels is the right one. More>>

ALSO:

FMA: Kiwis Confident Financial Markets Will Recover From COVID-19, Plan To Increase Investments

Despite the majority (60%) of investors experiencing losses as a result of COVID-19, the outlook on investing remains positive, according to a Financial Markets Authority (FMA) survey. Most Kiwis (71%) were optimistic that the pandemic will pass eventually ... More>>

FIRST Union: Warehouse Using Covid For Cover As Extensive Restructure Makes Everyone Worse Off

(FIRST Union comments on The Warehouse consultation and proposed restructure) 'Unfortunately the Warehouse have done the disappointing thing and used Covid-19 to justify a bunch of operational business decisions that will leave hundreds of workers without jobs ... More>>

ALSO:

Stats NZ: Mixed Performance By Regions Leaves National Emissions Picture Unchanged

Approximately two-thirds of New Zealand’s regions recorded decreases in their total greenhouse gas emissions, while one-third of regions saw increases between 2007 and 2018, Stats NZ said today. “While some regions reduced their emissions, ... More>>