The rural property market continues its lacklustre performance of recent months, with the number of properties sold in the three months to October 31 less than half that of two years ago, although the median price remains steady.
Figures released by the Real Estate Institute of New Zealand (REINZ) show 147 farms sold in that three-month period, down slightly on the 164 in the three months to September but significantly less than the 205 for the same period in October last year and 390 a year earlier.
The median price for farms sold last month was $950,000, steady with the $1 million in September but more than the $875,000 in October last year. In October 2008, the median price was $1.5 million.
REINZ spokesman Bryan Thomson said despite optimism in the rural sector, especially dairy, buyers were "very price sensitive" and refused to pay prices they considered relevant to two or three years ago.
In the three months to the end of October, just eight dairy farms were sold for a median price of $1.7 million, well down on the $3.1 million median price recorded in the three months to the end of September.
That price was influenced in part to one of the four October sales being a leasehold farm, where the price would have been lower than for freehold.
The average price per kilogram of milksolid rose from $30 a kg in September to $33 a kg in October.
In Otago, 13 farms sold in the three months to the end of October, compared with 19 in the three months to the end of September and 10 in the same period to the end of October last year.
The October median price was unchanged from September at $670,000.
In Southland, 11 farms sold to the end of October, half that of September but similar to October last year.
The median price slipped from $1.162 million in the September period to $1.125 million for October.
Otago lifestyle blocks remained in demand, with 67 selling for a median price of $410,000, well up on the $320,000 in the three-month period ended September 30.
