Dairy farm sales price down on last year's median

Grazing farm sales in Northland have been fetching prices close to the national median sales price for grazing land.

Thirty-nine Northland farms were sold for the three months ended October 31 — one dairy, 11 finishing and 18 grazing farms, seven forestry blocks and two horticulture units.

Real Estate Institute of New Zealand (REINZ) figures show the Northland dairy farm sold for $14,143/ha, down almost $800 on the $14,935/ha median price for dairy farm sales in the region at this time last year.

The REINZ says nationally there were a large number of dairy farms on the market in Waikato and Southland in particular — and reasonable stocks in Northland — but a poor enquiry. The 20 dairy farms sold nationally for the three months fetched a median of $40,012/ha and included a very strong sale of close to $70,000/ha in the Waikato.

On a price per kilogram of milksolids basis the median dairy farm sales price nationally was $34.30kgMS for the three months ended October 2017, compared to $36.7kgMS for the three months ended September 2017 and $34.64kgMS for the three months ended October 2016.

The 18 Northland grazing units sold for the three months to October 31 had a median sales price of $11,034/ha, very close to the $11,822/ha median for the 70 grazing farms sold nationally in the same period.

The REINZ says grazing farm sales nationally last month were more than 50 per cent down on volumes recorded for October 2016 and October 2015. Northland and Otago regions were notable for the strongest activity with Hawke's Bay and Taranaki beating Waikato, Bay of Plenty and Canterbury into second place.

The 11 Northland finishing farms sold for the three months to October 31 had a median sales price of $27,817/ha, down from $28,629/ha in September but well up on the $17,596/ha median for regional finishing farm sales at this time last year.

Nationally, the 86 finishing farms sold for the three months ended October 31 made a median price of $29,057/ha. REINZ says there was an easing of finishing farm sales volumes across the country with some solid sales of smaller blocks in the Waikato, Hawke's Bay, Taranaki and Nelson and good prices paid for several properties in Canterbury.

The seven Northland forestry blocks sold for the three months ended October 31 had a median sales price of $1100/ha, very similar to the $1121/ha price tag for eight forest blocks totalling 972ha sold in the region last month, down from $16,154/ha for Northland forestry sales in September last year. The low prices are attributed to land from which pine plantations have been harvested and not replanted.

The two Northland horticulture properties sold for the three months ended October 31 had a median price of $451,632/ha, well up on the $350,833/ha median for the 38 horticulture properties sold nationally in that period.

Meanwhile, the 220 Northland lifestyle block sales for the three months had a median sale price of $443,250, down from $485,000 in September, but still substantially ahead of the $380,000 median for lifestyle sales in the region in October last year.

In Auckland, the $1.15 million median for the 251 lifestyle sales was also down on a $1.2m median for September sales and lower than the $1.17m median for sales in October last year.

However, the median price for the 1727 lifestyle sales nationally was $616,000 — up $21,000 on the $485,000 September median and $71,000 ahead of the $545,000 median for sales last October.