Farm sales volumes up strongly, prices up modestly, Real Estate Institute of New Zealand says

Farm sales are up 42% year-on-year, while lifestyle block sales are up 54%.

The latest rural sales figures from the Real Estate Institute of New Zealand show 517 farms sold in the three months to the end of January, compared to 363 in the same period a year previously.

In the 12 months to the end of January 2021, farm sales were up 16% compared to the previous 12 months, led by a 39% increase in dairy farm sales and a 30% increase in finishing farm sales. Grazing property sales were down 6.5% and arable farm sales were down 26%.

Prices also appeared firmer, with the REINZ All Farm Price Index, which adjusts for differences in the size, location and type of farms sold each month, up 6.1% for the three months to January compared to a year earlier.

Dairy prices rose more modestly, with the REINZ Dairy Farm Price Index up 2.8% compared to a year earlier.

The lifestyle block market was even more buoyant, with the REINZ recording 2773 lifestyle property sales in the three months ended January this year compared to 1800 for the same period a year earlier (+54%).

The median selling price of all lifestyle properties sold over the three months to January was $847,000, up 17%.

"The current mood in the rural sector is one of determination, with the will to cope with climatic and market variations, backed by an underlying feeling of cautious optimism, irrespective of the disruption caused by the COVID-19 pandemic," REINZ rural spokesman Brian Peacocke said.

The interactive chart below shows monthly sales by farm type. A more detailed monthly analysis is available here.

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