'Limited' Bay farms for sale but good prices achieved for vendors

Farm sales in the Bay are slowing, according to recent REINZ figures. Photo/File

Data released yesterday by the Real Estate Institute of NZ (REINZ) shows there were "limited" Hawke's Bay farms for sale for the three months ended February 2017 - yet properties sold achieved good prices.

REINZ said the region's strong beef market, particularly for weaner cattle, had caused vendors to be optimistic, but purchasers "remained cautious".

It said the pip-fruit sector was "buoyant", but things were "quiet currently on the Ruataniwha Dam project".

Nationally the figures showed there were 38 fewer farm sales (-8.0 per cent) for the same period, than for the three months ended February 2016.

Overall, there were 436 farm sales in the three months ended February 2017, compared with 521 farm sales for the three months ended January 2017.

The median price per hectare for all farms sold in the three months to February 2017 was $27,395 compared to $25,970 recorded for three months ended February 2016 (+5.5 per cent). The median price per hectare rose 1.3 per cent compared to January.

Otago recorded the largest increase in sales, followed by Taranaki and Southland.

"Sales figures for the three months ending February 2017 confirm an easing in volumes in all categories for the period, albeit sales of finishing and horticultural properties during the month of February showed a lift compared to the previous month", says REINZ rural spokesman Brian Peacocke.

"Caution, uncertainty and delayed decision-making are the over-riding comments relating to the current market as the rural sector continues to grapple with volatility of income, volatility of climate and the ever increasing emphasis on compliance and environmental issues.

"Horticulture remains the bright spot on the immediate horizon, particularly the kiwifruit and pip-fruit sectors, followed closely by a resilient beef market."

For the three months ended February 2017 the median sales price per hectare for horticulture farms was $269,034 (44 properties) compared to $204,281 (53 properties) for the three months ended January 2017, and $254,448 (54 properties) for the three months ended February 2016.

The median price per hectare for horticulture farms has risen 6 pewr cent over the past 12 months. The median horticulture farm size for the three months ended February 2017 was 8ha.

The figures also showed there was a good lift in volumes of lifestyle blocks sold from the previous month throughout Hawke's Bay, Manawatu and Wanganui, but modest results in Taranaki.