Farm sales surge, says REINZ

Tuesday 15th November 2011 2 Comments

New Zealand farm sales nearly doubled in the three months ended October 2011, compared with a year earlier, according to the Real Estate Institute of NZ (REINZ).

The number of sales jumped 94.6 percent compared to the same period a year ago, with 286 properties sold. However, the median average price only increased 6.7 percent to $18,878.

REINZ spokesperson Brian Peacocke said nine regions recorded an increase in sales volumes, including Canterbury, Auckland and Nelson, while Manawatu, Wanganui experienced a 3 percent drop in sales.

"The rise in the number of sales in the three months to October reflects the large number of properties currently being marketed for sales and a general mood of cautious optimism despite current economic challenges internationally."

Grazing properties accounted for the largest number of sales with a 58.7 percent share of sales over the three months, horticulture properties accounted for 7.7 percent and diary properties, 5.9 percent.

Peacocke said the recent reduction in Fonterra's forecast payout impacted the diary sector but this was offset by the best spring growth conditions seen in years.

The lifestyle property market also eased 5.1 percent, with Auckland recording the largest fall followed by Bay of Plenty and Taranaki.

BusinessDesk.co.nz

Comments from our readers

On 15 November 2011 at 5:03 pm reynold macpherson said:

With demand rising so fast, prices must follow as supply slows. Consider.

On 15 November 2011 at 9:26 pm Ronald said:

Its a pity the majority were sold as the profits once mors leave NZ