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Home / New Zealand

Rebounding sector sees farm sales rise

By Cassandra Mason
Wairarapa Times-Age·
23 Jul, 2013 07:04 PM3 mins to read

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Growing confidence in the agriculture sector has seen increased interest in the rural Wairarapa property market, where farmers are slowly recovering from the effects of the drought.

The Real Estate Institute of New Zealand's (REINZ) rural market report showed 512 farms were sold nationwide in the three months to May, or 10 per cent more than during the same period last year and the highest number for a May quarter since 2008.

There were also 69 more farm sales than in the previous quarter for a 15.6 per cent jump.

In the year to May, farm sales rose 6.6 per cent to 1490.

In contrast, just five farms were sold in the Wairarapa region during the quarter ending in June, compared with 14 a year ago.

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Figures showing the value of recent rural property sales in Wairarapa were unavailable, although rural land was fetching a median price of $14,955 per hectare last year.

Federated Farmers Wairarapa provincial president Jamie Falloon said while there had only been a few local farm sales, interest was "reasonably strong".

Rolling out the back end of a drought, prospects were better and more people were being encouraged to look into buying rural property.

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Farmers were happy with the winter season so far and morale was definitely up. However, cash was still tight as a lot of money had been spent coping with the drought, Mr Falloon said.

"This is the money period for everyone, it's always a nerve-wracking couple of months which set your whole financial year up."

Meanwhile, the value of rural property has risen nationally, with the median price per hectare jumping 20.4 per cent in the three months to May compared to last year, from $17,031 to $20,499.

Waikato, Auckland and Northland notched up the most sales in the May quarter, compared to a year ago.

Southland recorded the largest fall of 11 sales, followed by Nelson and Canterbury.

"Enquiry in all farm categories is consistently strong in all regions, in contrast to the normal seasonal pattern in winter," REINZ rural market spokesman Brian Peacocke said.

"The increased dairy payout, lower New Zealand dollar and continuing low interest rates are the key drivers of increasing farm confidence across the country."

The confidence boost has brought about a shortage of listings, and farms put up for sale were pulling crowds and multiple offers at open days, he said.

Dairy farms were doing especially well, with the number of sales strongly ahead of the previous year, reflecting "an increasing degree of confidence within the dairy industry", Mr Peacocke said.

Rising confidence in the lifestyle sector was also leading to more sales around Auckland and Christchurch, and in the Waikato.

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