May farm sales highest in three years

Photo / Christine Cornege

Confidence in the rural sector due to rising commodity prices is flowing through to farm sales, according to the Real Estate Institute of New Zealand

There were 130 farm sales in the month of May, up from 118 the same month a year ago, and the highest since 2008, figures released by the REINZ show.

Twenty-one sales were for dairy farms, up from 13 in 2010, and simliar to 22 in May 2009. Sales of dairy farms are still well below levels seen previous to that, with 41 changing hands in May 2008.

"The upturn in farm sales that came through in the April data (152 sales) has continued into May, with a further lift in grazing and dairy support property sales in the South Island," REINZ Rural Market Spokesman Brian Peacocke said.

"For the month of May alone there were 130 sales, which is the strongest May result in three years. Confidence in the rural sector has been rising for some time now and along with continued high commodity prices, this is now translating into greater confidence in buying farms," Peacocke said.

"The level of enquiry has certainly increased over the past few months, however, farm prices are not moving up as yet. Buyers remain cautious and are clearly doing their due diligence. There is also further anecdotal evidence of finance becoming easier to source for good quality farms," he said.

- INTEREST.CO.NZ