There were 210 farms sales in the three months ended July
Farm sales were down by -22.2% (60 sales) for the three months ended July compared to the same period last year, fresh data from the Real Estate Institute of New Zealand (REINZ) showed.
Overall, farm sales numbered 210 in the three months ended July, a -6.7% decline from the 225 farm sales for the three months ended June, and down from the 270 farm sales for the three months ended July 2022.
In the year to July, there were 1,096 farms sales, fewer by 535 in the year to July 2022, with 35.5% fewer dairy farms, 11.1% fewer dairy support, 18.8% fewer grazing farms, 39.1% fewer finishing farms and 21.2% fewer arable farms sold over the same period, the REINZ report showed.
“The largest reduction occurred in the dairy sector with a 35% reduction in sales as farmers focused on controlling farm costs and higher interest rates and a predicted drop in farm gate milk prices. Similarly, the volume of sales of dairy support units was back,” said Shane O’Brien (pictured above), rural spokesman at REINZ.
“There was also a substantial decrease in the volumes of sales in the pastoral sector, including both grazing and finishing properties. Recent weather events across a lot of New Zealand, a lower number of listings on the market and a drop in inquiry for carbon farming and forestry will have impacted this sector.”
In the three months to July, farms sold had a median price per hectare of $29,450, up by +5.7% compared to $27,875 recorded for the three months ended July 2022. The median price per hectare lifted 6.1% on the June figure.
The REINZ All Farm Price Index dipped 0.8% in the three months to July compared to the three months to June and tumbled 7.2% compared to the three months ending July 2022.
Unlike the median price per hectare, the REINZ All Farm Price Index adjusts for differences in farm size, location, and farming type.
Farms sales increased in three regions for the three months ended July compared to the same period last year. The increase was most notable in the West Coast and Bay of Plenty, which had +11 and +5 more sales, respectively.
On the other end of the spectrum, the biggest declines in sales were recorded in Southland ( -20 sales) and Northland ( -14 sales). Four regions had more farm sales when compared to the three months ended June, with Auckland, Bay of Plenty, and Otago (+3 sales) being the most notable.
On a more positive note, O’Brien said that while sales volumes were well down, sale values were holding steady with the previous 12 months with the median price paid across all sectors being up by 5%.
“This shows that buyers, although being cautious, will pay a good price for the right property that meets their needs,” she said.
July farm sales consisted of 31% finishing farms, 26% grazing farms, 12% dairy farms, and 10% horticulture farms. These four property types accounted for 79% of all sales during the three months ended July, REINZ reported.
Read the full REINZ report for more details into the farm sales.
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