Farm sales ebb and flow
The latest data from the Real Estate Institute of New Zealand (REINZ) revealed mixed trends in the rural real estate market for April.
While farm sales decreased by 7.8% compared to April 2023, there was a month-on-month increase of 5.4% from March to April 2024. Overall, 920 farms were sold in the year ending April 2024, marking a significant decline from the previous year.
Regional sales variances
Some regions showed resilience or growth in farm sales compared to last year, with notable increases in Gisborne/Hawkes Bay and Wellington. However, Otago and Southland experienced the largest declines.
“The elevated interest rates and unfavorable farm product prices have led to a general decline in farming sales across multiple sectors,” said Shane O’Brien (pictured above), rural spokesman at REINZ, in a media release.
Farm type performance
Different types of farms showed varying performance levels:
- Dairy farms: Saw a 10.8% decrease in median sales price per hectare over the past year.
- Finishing farms: Experienced a 13.4% decrease in median sales price per hectare.
- Grazing farms: Remained stable with a slight 0.1% increase in median sales price per hectare.
- Horticulture farms: Decreased by 2.2% in median sales price per hectare.
Market prices and future outlook
The REINZ all farm price index, which adjusts for differences in farm size, location, and type, decreased by 1.1% in the three months leading up to April and 13.1% compared to the same period last year.
Dairy farms and horticulture showed particular volatility in pricing, reflecting broader economic pressures and sector-specific challenges.
To compare the latest REINZ figures with the previous results, click here.
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