Farm sales up 39% compared to a year ago, lifestyle block sales up 40%

The rural property market remained buoyant over summer, with the number of farms and lifestyle blocks sold well up on a year earlier.

According to the latest rural sales figures from the Real Estate Institute of New Zealand, 458 farms were sold throughout the country over the three months to the end of February, up 39% compared to the same period a year earlier.

Over the 12 months to the end of February 1542 farms were sold, up 23% compared to the previous 12 months.

Sales of dairy farms (+51%) and finishing farms (+43%) were particularly strong, with grazing property sales up 3%, while arable farm sales were down 30% compared to a year earlier.

The lifestyle block market was just as buoyant, with 2471 lifestyle block sales in the three months to the end of February, up 40% compared to the previous 12 months.

In the 12 months to the end of February 9244 lifestyle properties were sold, up 28% compared to the previous 12 months.

Prices were also firmer, with the REINZ All Farm Price Index, which adjusts for differences in the mix of farms sold by type, size and location, up 7.4% over the three months to the end of February compared to a year earlier.

The REINZ Dairy Farm Price Index, which adjusts for differences in the mix of sales by farm size and location, was up 5.9% over the same period.

"Sales figures for the three month period ending February 2021 confirm the rural market is in good shape with dairy farm sales holding well, followed closely by those in the finishing and grazing sectors," REINZ rural spokesman Brian Peacocke said.

"Of particular note are the encouraging signals emerging from the world marketplace for dairy produce, which in turn is being translated into an increasing payout to the dairy farmers.

"The increased cash flow from this sector alone will have significant benefits for the New Zealand economy," he said.

A more detailed monthly breakdown of farm sales is available here.

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