The rural property slump deepened last month as sales of both farms and lifestyle blocks continued to decline.
According to the latest rural sales figures from the Real Estate Institute of New Zealand, just 171 farms were sold in the three months to the end of September, down 38.9% compared to the same period of last year and down 53% compared to the three months to September 2020.
The lifestyle block market wasn't much better, with 1325 lifestyle properties selling in the three months ended September, down 23.7% compared to the same period of last year, and down 51.3% compared to the three months ended September 2020.
Sales of both farms and lifestyle blocks are now at their lowest level in the last two years. (See the graphs below for the monthly trends).
Farm sales were usually lower in the September quarter compared to other times of the year but the latest reduction in sales compared to previous quarters had been quite dramatic, REINZ rural spokesperson Brian Peacocke said.
He believed the lifestyle block market was following the residential market down.
"It is likely the lifestyle market will, to a reasonable degree, continue to mirror the ebb and flow of the residential market," he said.
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13 Comments
Massey Ferguson 35 project in need of some love there...
As does the farming sector “ in need of some love “
Farmers are being well and truly milked by Government policy and banks.
Sarcasm? You know that it is a revolving door whereby the added climate costs and enforced inefficiencies get passed on eventually
I've been watching the rural market for the past few years. Prices skyrocketed post COVID just like the rest of the market, so dramatically in some of our preferred areas that we almost gave up looking. Large, medium and small farms and farmlets have started to roll in thick and fast, with very little moving off my watch lists. Looking forward to having the room to negotiate and have time to do thorough due diligence with planning during the purchase process now.
Can I ask what area you're in
More than fifty dairy farms for sale in Taranaki at present.
Dairy debt was $38.4b in March 2021. What is their exposure to rising interest rates? Does the current milk price offset that?
ANZ profit results indicate a $700 mil reduction in AG debt in last 12 months., from $16.3 down to $15.4 B so should be ok.
Housing debt increased $5.3 bil to $ 104 Billion, Scary stuff on housing
Is the inventory level the same, less or more?
Without that information this news is limited.
No need for Covid escape lifestyle blocks. Now they are back to being isolated and a whole lot of extra work.
For many isolation and hard work aren't the dirty words you think they are.
Yep its a way of life for farmers, farmworkers and ag contractors. Most townies wouldn't last more than 5 days. That's probably being optimistic
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