180 farms were sold in May, the most for a May since 2008 and the highest for any month since March 2012; prices per hectare hold

Sales of working farms were unusually strong in May, the best in five years.

There were 180 sales transactions in May, which is 25% more than May last year and more than 45% above the average over the past four years.

"Sales in the dairy sector for the season concluded on a solid note with continued strong demand for good properties. The number of dairy sales for the year ending May 2013 was strongly ahead of the previous year and reflects an increasing degree of confidence within the dairy industry," said REINZ Rural Market Spokesman Brian Peacocke.

"Increasing confidence is also apparent in the drystock sector with healthy sales volumes of finishing and grazing properties, particularly in Canterbury, Otago and Southland in the South Island, and Waikato, Tarakani and Manawatu/Wanganui in the North Island."

"The focus in the red meat sector on the potential for rationalisation or restructuring of the meat processing industry has not dampened demand for quality sheep and beef properties.”

Grazing properties accounted for the largest number of sales with 45.9% share of all sales over the three months to May, Dairy properties accounted for 17.6%, Finishing properties accounted for 20.7% and Horticulture properties accounted for 7.0% of all sales. These four property types accounted for 91.2% of all sales during the three months ended May 2013.

The median price per hectare was up to $20,499 in May 2013, level on a month ago.

Lower average prices were seen for arable and finishing units, while higher average prices were seen for grazing and horticulture properties compared with those same categories in April, and all others were stable.

For regional detail on prices per hectare by farm type, see here »

Actual sales in the month of May included: 
    7 arable farms,
  20 dairy farms,
  42 finishing units,
  86 grazing properties,
  16 horticultural,
    9 farms of other types