16 Dec 2009

Rural property market picking up

6:45 am on 16 December 2009

There are signs of a recovery in the rural property market. Latest sales figures from the Real Estate Institute show a lift in the number of farms sold as well as the average price.

More than 220 farms changed hands in the past three months.

But the institute says both sales and prices are still well below the equivalent periods for the past two years.

That's most noticeable in the dairy sector. Only 19 dairy farms sold in the three months.

President Peter McDonald says it's not because of a lack of willing buyers, but because the banks continue to keep too tight a rein on lending.

He says very few deals are coming together and the situation is really unusual.