Farm prices, sales subdued REINZ says (Update 3)

The Real Estate Institute of New Zealand says just 12 dairy farms changed hands during April with both the median dairy farm price and the average price paid per dairy farm hectare falling during the three months to April. (Updates add link to April's statistics, corrects number in second paragraph, adds chart). All up the REINZ said there were 267 farms sold in the three months to April, almost unchanged from the 366266 sold in the same period last year but massively down on the 786 sold in the April 2008 quarter. The national median farm sale price rose to NZ$1 million in the three months to April, slightly up from NZ$970,000 median price in the three months to March. More information on April farm sales is on www.agridata.co.nz See the April statistics here and read the REINZ's statement below:

The rural property market remains constrained with no significant rise in either prices or farm sales in the latest market statistics for the three months to April released today by the Real Estate Institute of New Zealand (REINZ). “Though there have been lots of inquiries the slow inactive market continues as buyers are being very cautious,” says Real Estate Institute of New Zealand (REINZ) President Peter McDonald.

The national median farm sale price rose to $1,000,000 for the three months to April 2010,  fractionally up on the median of $970,000 for the three months to March 2010, but still down on the February figure of $1,045,000. The total number of farms sold in the three months to April was 267, almost the same as the 266 in the same period last year but well down on the 786 farms sold in the three months to April 2008. Though it is effectively the last month in the dairy farm sales season, only 12 dairy farms sold in April and the median price for the three month period fell from $3,600,000 at the end of March to $3,550,000. The average price per hectare for the April dairy farm sales was just $34,766, a further decline on the March average of $36,905, and the February average of $43,970. And the average sale price per kilogram of milk solids fell to $36 from $42 in March and $47 in February. On a regional basis the largest number of farm sales during the three months to April was 38 in the Waikato followed by 30 in Manawatu/Wanganui.  There were increased sales of grazing properties with 123 sold in the three month period and a rise in the median price to $900,000 from $850,000 at the end of March. There was also an increase in the median price for finishing farms from $953,100 at the end of March to $1,225,000 in the three month period ending in April. While there was an increase in the sale of lifestyle properties from 1118 at the end of the three months to March to 1167 at the end of the three months to April, the national median selling price remained the same at $440,000.  In Auckland the median price for lifestyle properties fell from $735,000 to $706,000 but on the West Coast it increased from $166,000 to $202,000. On an annual basis there has been no increase in the median price of lifestyle properties and they remain down on the $455,000 median price at the end of the three months to April 2008.