Spring brings glimmer of hope for Northland property vendors

Rural land sales are down with dairy and beef farmers dealing with calving and sheep farmers preparing for lambing. Photo / DairyNZ

As anticipated for the midwinter, when calving is getting under way and farmers are preparing for lambing, sales volumes in all categories show a reduction for July.

Expectations within the rural sector remain cautiously optimistic, strongly tempered by Government moves likely to translate into an increase in employment costs, says Real Estate Institute of New Zealand (REINZ) rural spokesman Brian Peacocke

"As anticipated for the midwinter, when calving is getting under way and farmers are preparing for lambing, sales volumes in all categories show a reduction for July 2018," he says.

REINZ recorded 40 Northland rural property sales for the three months to July 31 — three dairy, eight finishing, one special and 20 grazing farms, four forestry blocks and four horticulture properties.

The median sales price per hectare of the Northland dairy farms was $11,251 — the same price as the region's sales to June 2018 and down on the $12,666/ha median for Northland dairy farm sales in July last year.

The 39 dairy farms averaging 115ha which changed hands nationally for the three months ended July 31 had a median sales price of $31,881/ha, up from $35,385/ha in June, but down from $47,687/ha in July last year.

On a price per kilogram of milksolids basis, the median sales price was $32.01kgNS for the three months ended July 2018, compared with $35.97kgMS for the three months ended July 2017.

The eight Northland finishing farms sold for the three months ended July 31 had a median sale price per hectare of $21,926, down from 23,950/ha in June and $30,215/ha in July last year

The 123 finishing farms averaging 50ha sold nationally for the three months to July 31 had a median sale price of $26,531/ha, up from $26,245/ha in June but down 14.1 per cent from $30,882/ha in July last year.

The 20 Northland grazing farms sold for the three months ended July 31 had a median sale price per hectare of $9912, up from $9363/ha in June and almost equal with the $9922/ha for sales in July last year.

The 143 grazing farms averaging 152ha sold nationally for the three months ended July had a median sales price per hectare of $10,196, slightly up from $10,113/ha in June, but down on the $11,274/ha median for July last year. The median price per hectare for grazing farms has fallen 9.6 per cent over the past 12 months.

The four Northland horticultural properties sold for the three months ended July 31 had a median sale price per hectare of $253,330, substantially more than the $155,062/ha median for sales to June and the $104,891/ha median for July last year.

The median price for the 44 horticultural properties averaging 8ha sold nationally for the three months ended July 31 was $281,468/ha, up from $279,543/ha in June and $149,251/ha in July last year.

The median price per hectare for horticulture farms has risen 88.6 per cent over the past 12 months.

The four Northland forestry blocks sold for the three months ended July 31 had a median sale price per hectare of $7418, up from $2657/ha in June but down from $8556/ha in July last year.

Meanwhile, there were 246 Northland lifestyle block sales for a median price of $502,506
The median price for all lifestyle properties sold in the three months to July 2018 was $660,00 and was $80,000 higher compared to the three months ended July 2017.
Brian Peacocke said price levels reflected a sector experiencing good health, but also a shortage of stock.

"The test will be the sustainability of the median price as the availability of property increases in due course, but certainly to date the median price is showing a steady and inexorable increase over recent years," Peacocke says.