The COVID-19 lockdown has affected the rural property market with sales of both farms and lifestyle blocks dipping.
The latest figures from the Real Estate Institute of New Zealand show there were 306 farm sales in the three months to the end of August, which included two weeks of Level 4 lockdown.
That was down by 14% compared to the the three months to the end of August last year.
Lifestyle property sales were even more badly affected, dropping 25% to 1809 in the three months to August from 2409 in the same period last year.
"Sales figures for the most recent three month period reflect both the time of year, when the rural sector is busy with calving and lambing, and the impact of the COVID-19 lockdown, with both factors impacting on sluggish sales," REINZ rural spokesman Brian Peacocke said.
However on an annual basis, rural property sales are running well ahead of the previous year.
In the 12 months to the end of August this year the REINZ recorded 1680 farm sales, up 37% on the previous 12 months, while 9893 lifestyle block sales were recorded in the 12 months to August this year, up 38% compared to the previous 12 months.
Prices have also remained firm.
According the REINZ All Farm Price Index, which adjusts for differences in the mix of properties sold, overall farm prices over the three months to August were up 0.9% compared to the three months to July, and up 15% compared to the three months to August last year.
The median price of lifestyle blocks sold over the three months to August was $940,000, up from $925,000 compared to the three months to July, and up by $190,000 compared to the three months to August last year.
The interactive chart below shows the trends in farm sales by farm type. A more detailed monthly analysis is available here.
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9 Comments
Just finished reading the farmer's weekly really brought it home just how dependent we are on the volume China takes of dairy and meat , we would have big problems if they faltered I imagine this would have a significant flow on effect on farm values .
The last thing China will give up on is feeding their people. Hungry people = Revolution
Northland is looking quite attractive for lifestyle blocks in this Covid era, space and “bang for your buck”. Trouble is, listings. How big will the exodus from Auckland be ? Summer will be an indication.
Northland? Pretty badly hit with drought the last few summers, no?
Yes -awful place. Miserable weather,- either too hot or not hot enough, somedays you have to wear a jersey to stay warm, full of sad people - some don't even know their neighbour's surname. feel hard done by - beaches and rivers can be up to 10 minutes drive away. Some towns have gotten so bad they even have traffic lights and on a really bad day you might have to wait for them to change twice before getting through, Too many sports fields and parks and cycleways - awful place. Please leave the suffering to the locals.
Gold!!
Pressure on milk prices and farm values will make them attractive for acquisition.
No disrespect but what planet are you on?
Fonterra have just offered a limited quantity fixed contract for supply of $8.02 per kg milksolids net of management costs.
That must be a new record for a Fonterra fixed price contract and one of the highest ever of any type..
And as for the (false) negative connotations of the above headline farms coming to market this spring will find ready demand at higher prices.
Forestry have lifted their offers around 20-30% in the last year or so and reset the baseline for the farm market upwards..
I think you are right Wilco in the regard that dairy farms will be priced accordingly as in they are a good investment. Forestry are only interested in lower quality land and as I see it is a good opportunity for older farmers to cash up. Particularly if there is little prospect of staying on their land in the hope of someone taking over with the finance to live comfortably and pay out the present owner.
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