The rural property market remains robust, figures released yesterday show, with continuing strong demand for lifestyle blocks.
The Real Estate Institute data backs up a report from Quotable Value released on Monday that showed the rural price index rose 4.7 per cent in the six months to the end of June - a greater rise than in the two previous six-month periods.
The national median farm sale price for last month was $540,000 - a fall from $680,000 in July but an increase from the August 2002 median of $487,000.
Farm sales last month totalled 175, compared with July sales of 206 and 156 in August last year.
The institute's rural spokesman, Murray Cleland, said the latest figures were consistent with a seasonal slowing and economic factors that had more impact on the rural economy than urban centres.
But he emphasised that the outlook for the sector was bright.
"The results for August are still very robust in comparison to 2002 and long-term observers of movements in rural property understand that year-to-year comparison is the key to assessing rural property," he said yesterday.
"The international economic picture is more positive than in the first two quarters of 2003, and will lend some stability to the New Zealand rural economy.
"The institute believes that the rural sector will stabilise once it has a more concrete picture of what the next 12 to 18 months will bring."
On month-to-month and year-to-year comparison, the lifestyle block market firmed in activity and in median sales price.
The 682 sales recorded last month were up from July's sales of 675 and the 533 sales recorded in August last year. The median sales price firmed to $256,750, from $248,000 in July and $215,000 in August 2002.
The demand for dairy properties eased on a month-to-month basis but improved on August last year. Thirteen properties changed hands last month, compared with 27 in July and nine the previous August.
Dairy property values fell from July and last year, with the median sale price last month at $1 million, down from the $1.4 million recorded in July and $1.355 million in August 2002.
The horticultural property median price rose on a year-to-year and month-to-month comparison, with 26 sales at a median of $600,000 last month, compared with 28 sales at $563,500 in July and 35 sales at a median of $530,000 the previous August.
Finishing property sales eased on a month-to-month basis, but firmed on a year-to-year comparison, with 18 sales last month compared with 25 in July and 16 in August 2002.
The median price fell from last year and July, with $637,500 recorded last month, $838,125 in July and $852,500 in August last year.
Ninety-seven grazing properties sold last month, 14 fewer than the 111 sales in July and 12 more than the 85 sales recorded in August 2002.
The median sale price of $450,000 was down from the $605,000 recorded in July and up on the median price of $435,000 in August last year.
The arable property national median price fell on a month-to-month basis but rose on year-to-year comparison, with three sales at a median of $930,650 last month compared with five at a median of $1.32 million in July and six at a median of $562,500 in August 2002.
The institute said yesterday that the median residential house price rose 1.8 per cent last month and 16.2 per cent over the previous 12 months.
- NZPA
Farm prices, sales strong, real estate figures show
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