Real-Estate Round-Up: FARMS

National data released by the Real Estate Institute of NZ (REINZ) shows:

• 1,475 farms were sold in the year to October 2018

• 10.5% fewer than were sold in the year to October 2017

• with 7.7% less dairy farms

• 5.6% fewer grazing farms

• 13.2% less finishing farms

• and 22.5% fewer arable farms sold over the same period.

The median price per hectare for all farms sold in the three months to October 2018 was $27,121 compared to $24,982 recorded for three months ended October 2017 (+8.6%).

GRAZING farms accounted for the largest number of sales with a 34% share of all sales over the three months to October 2018.

• FINISHING farms accounted for 29%

• HORTICULTURE accounted for 19%

• and FORESTRY properties accounted for 6% of all sales.

These four property types accounted for 88% of all sales during the three months ended October 2018.

For the three months ended October 2018, the median sales price per hectare for DAIRY FARMS was $28,555 (11 properties), compared to $30,876 for the three months ended September 2018 (14 properties), and $40,012 v(20 properties) for the three months ended October 2017.

The median price per hectare for dairy farms has decreased 28.6% over the past 12 months. On a price per kilo of milk solids basis the median sales price was $30.59 per kg of milk solids for the three months ended October 2018, compared to $30.65 per kg of milk solids for the three months ended September 2018 (-0.2%), an d $34.30 per kg of milk solids for the three months ended October 2017 (-10.8%).

The REINZ Dairy Farm Price Index decreased 6.2% in the three months to October 2018 compared to the three months to September 2018. Compared to October 2017, the REINZ Dairy Farm Price Index fell 16.6%.

Waikato

• Light activity on dairy farms, but reasonable sales of finishing and grazing properties; a larger selection of dairy farms available for sale throughout the region where buyer interest and attendance at Open Days is extremely variable.