Rural property: 'Interesting spring' predicted

The median price per hectare for New Zealand dairy farms rose 14.1 per cent to $37,812 and finishing farms increased by 14.9 per cent to $30,828 over the past 12 months. Two Northland dairy farms sold in the three months to September 30 fetched $18,042/ha while 16 Northland finishing farms had a median price of $28,629/ha.

Forty-eight Northland farm sales were recorded for the three months to September 30 - 16 finishing, 19 grazing and two dairy units along with eight forestry blocks and three horticulture properties.

Real Estate Institute of New Zealand (REINZ) data shows the median price for the 16 finishing farms was $28,629/ha, well up on the $17,596/ha sales median for finishing farms in the region at this time last year, but still a little behind the $30,828/ha median for the 103 finishing farms averaging 45ha sold nationally over the past three months.

The 19 Northland grazing units which changed hands in the September sales quarter made a median price of $11,326/ha, similar to the median for the second quarter this year and up on the $9182/ha grazing farm median for sales in the region in September last year.

Nationally, the median price for grazing farms has fallen 22 per cent over the past 12 months and the 69 grazing farms averaging 75ha sold for the three months to September 30 made a median price of $12,031/ha, down from $15,339/ha for sales a year earlier.

The two Northland dairy farms sold in the three months to September 2017 fetched $18,042/ha, down on the $21,941/ha median for dairy farm sales in the region during the previous quarter but ahead of the $16,565 median for Northland dairy farm sales in September 2016.

The 22 dairy farms averaging 122ha sold nationally for the three months to September 2017 made $37,812/ha, compared to $37,842/ha for the 26 dairy farms sold for the previous quarter and $33,132/ha median for 12 sales in September last year.

On a price per kilogram of milksolids basis, the national median sales price for dairy farms was $36.78kgMS for the three month to September 2017, compared to $34.95kgMS for the previous quarter and $43.05kgMS for the three months ended September 2016.

The eight forestry blocks sold in Northland for the three months to September 30 went for a median price of only $1121/ha, less than half of the $2521 median for forestry sales in the region in August this year and far below the $16,154/ha median for sales in September last year.

Nationally there were 19 forestry sales making $4701/ha for the three months to September 2017, down from $9882/ha a year earlier.

The three Northland horticulture properties sold for the three months to September 2017 had a median sales price of $249,335/ha, a big lift on the $160,796/ha median for horticulture sales in the region at this time last year and the $138,724/ha median for regional sales for September 2015.

The median price for the 35 horticulture farms averaging 8ha sold nationally for the three months to September 2017 was $189,044/ha, compared to a $177,726/ha median for 82 properties sold for the three months to September 2016.

A total of 1667 farms were sold in the year to September 2017, 6.6 per cent less than in the previous year, with 43.3 per cent more finishing farms, 31,3 per cent more dairy farms and 29.1 per cent fewer dairy farms than in the previous year.

REINZ rural spokesman Brian Peacocke said an interesting spring was emerging as a considerable number of farms were now coming on to the market, with evidence of more landowners considering their options.

"Labour, climate, environmental issues and politics are among the driving factors for decisions currently being made," he said.

REINZ data shows there were 1716 lifestyle property sales nationally - 207 of them in Northland - in the three months ended September 2017.

The median sales price for the Northland lifestyle blocks was $485,000, up from $380,000 a year earlier, while the September 2017 national lifestyle median was $595,000, up $65,000 from $530,000 in September last year.

Mr Peacocke said the outcome of the country's current political situation would impact on the lifestyle market, particularly as that relates to job security and the implications surrounding changes in the taxation rules and regulations, if any.