Sales of New Zealand farm property are at their highest level for nearly 2 years, and according to the latest report from the Real Estate Institute of New Zealand, this trend is likely to continue. A total of 1,003 farms were sold in the year ending August 2011, and this is the first time since October 2009 that more than 1,000 farms have been sold annually.
Although this figure is only slightly above 1,000, the Institute thinks it indicates an underlying trend due to farmer returns remaining good, while commodity prices are expected to hold or increase as the season gets underway.
A total of 265 farms were sold in the three months up to August, which is an increase of 38% on the same period last year, but is a 12% reduction compared to the end of July.
Sales of dairy farms are quite low which is seasonal, even though there is good demand for high-quality grazing, and in general most farm types are seeing sustained interest, and all but one region has recorded an increase in sales compared to August last year.
The median price per hectare has declined from $16,968 in August 2010 to $15,148 for August 2011, but experts expect the prices to remain reasonably constant and sales to increase.
The number of lifestyle properties sold in August decreased compared to May, but is still well above last year's figures as 1,304 properties were sold during the three months ending in August, up from 1,066 during the same period in 2010. The median price declined from $453,000 to $444,000.
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