22 Jun 2011

More farms selling but prices down

3:22 pm on 22 June 2011

Latest figures from the Real Estate Institute show a further lift in the rural property market in terms of sales, but not prices.

There were 364 farm sales in the three months to the end of May. That's up on the 290 sales in the three months to April, and also an increase on the 319 farms sold in the same period last year.

However, the average price is down. The median price per hectare for all farms sold in the three months to May was $17,199, compared with $17,938 for the April period and $18,230 last year.

The Real Estate Institute says while farm prices are not moving up yet, the lift in sales reflects the growing confidence in the rural sector as commodity prices remain high.

Rural market spokesman Brian Peacocke says there were 130 sales last month alone - the strongest May result in three years.