18 Nov 2015

Grazing properties sales booming

6:08 pm on 18 November 2015

Latest figures from the Real Estate Institute show grazing properties accounted for the largest number of farm sales in the three months to October, accounting for just over 42 percent of all farm sales.

Finishing and horticulture properties accounted for nearly 20 percent of sales each while arable properties accounted for just under 10 percent.

The median price per hectare for all farms sold in the three months to October 2015 was $27,579, compared to $27,547 recorded for three months ended October 2014.

The median price per hectare rose 6 percent compared to September.

Real Estate Institute rural spokesman Brian Peacocke said, overall, there were 358 farm sales in the quarter ended October compared to 346 farm sales for the same period last year.

Auckland recorded the largest increase in sales followed by Hawke's Bay and Otago, he said.

"Whilst the total sales figures for the three month period ending October 2015 confirm a slight increase in volume, they fit within a pattern as the figures for the equivalent period over recent years, being 2013 (349 sales); 2014 (346 sales) and 2015 (358 sales) are remarkably consistent.

"Of note, however, are the feature points in the rural marketplace during the month of October, particularly the volatility in prices at the global dairy trade auctions, the projected benefits from the Trans-Pacific Partnership agreement, the increasing number of farms being marketed for sale, especially in the greater Waikato region, and speculation surrounding the values of such properties."