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Increased rural sales helps bolster median price

Monday 24th November 2003

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Stronger sales volume was experienced in the rural property market during October, with increases in sales helping to bolster the median price to new levels, according to the rural spokesperson for the Real Estate Institute of New Zealand, Murray Cleland.

The national median price for farms and lifestyle blocks continued its upward path, with the national farm median price reaching $650,000, ahead of the September's $610,000 median price and the prior year's median at $600,000. A total of 213 farm sales were recorded in October, up from September's 184 sales and the prior year's 132.

"The market is now coming out of the traditionally quieter winter time and into the strong selling period for both farms and lifestyle blocks.

"The momentum is clearly still there with very strong levels of enquiry from buyers especially for dairy properties, contrary to the pundits who had predicted the market would ease.

"The market is still moving upward although it could level out over the coming months," Cleland said.

Sales of grazing, finishing, dairy, forestry and special farms all strengthened for the month, against September and October 2002's recorded sales volume.

The arable property median for the October period was $1,000,000, ahead of September's $600,000 median, but falling in contrast to the $1,447,500 median achieved the prior year.

The median dairy price steadied at $1,575,000 for the month, up from the prior month's $1,554,000 median and easing slightly from the prior year's $1,598,000 median.

Finishing properties experienced an increase in sales volume from the 17 sales achieved in September and 21 sales recorded last October to 24 sales for October 2003. The median price also grew from the prior month's $1,050,000 median to $1,185,000 for October.

Forestry sales firmed at seven for the month, up from the prior month and year's sales of six.

Grazing property sales rose to 115 during October, up from September's 97 sales and the 59 recorded in October 2002. The median price increased to $505,000, compared to September's $420,000 median and the prior year's median price at $450,000.

Twenty-three sales were recorded in October for horticultural properties at a median $635,000, a positive result when compared to October 2002's $618,500 median, but declining in contrast to September's $789,580 median price.

Increased demand for special farms resulted in ten sales for the month, up from the five recorded last month and last year.

Lifestyle properties continued to strengthen with 818 sales recorded during October, ahead of last month's 806 sales and October 2002's 647. The median lifestyle price was recorded at $255,000 for the month, up from September's $244,000 median and last year's $247,500 median price, proving that lifestyle properties continue to meet strong demand.

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