17 May 2012

REINZ warns farm sales will decrease over winter

7:24 am on 17 May 2012

The Real Estate Institute expects a slow-down in farm sales as the excellent production season comes to an end.

That follows a surge in sales over the past four months, with about 1300 farms sold to the end of April - 51% more than in the same period last year.

The latest figures show there were 153 more sales of rural properties in the three months to April compared with the previous year.

During that quarter the median price per hectare for all farms sold rose nearly 4% to $18,500.

However Real Estate Institute rural market spokesperson Brian Peacocke says he expects sales to drop off over the next few months.

He says the earlier confidence arising from the good season is being replaced with caution as buyers take into account recent reductions in returns for dairy and sheep products.

All regions except Hawke's Bay and Otago recorded an increase in sales in the April quarter compared with a year ago.

Waikato showed the largest increase in transactions, with 32 more properties sold tha in the previous quarter.

Grazing properties accounted for the largest increase in sales, while lifestyle property sales rose about 29%.