Increasing confidence in the rural sector, coupled with continued high commodity prices, are translating into greater confidence in buying farms.
Figures released by the Real Estate Institute of New Zealand show a further strong rise in the number of rural sales throughout New Zealand in the three months to the end of May.
Overall, there were 364 farm sales in that period, compared with 290 sales in the three months to April 30 this year, and 319 sales in the three months to May 2010.
The median price per hectare was $17,199, compared with $17,938 in the previous three months and $18,230 for the three months ending May 2010.
The Waikato region recorded the strongest increase in sales between April and May, followed by Canterbury and Southland.
The increase in farm sales that came through in the April data had continued into May, with a further rise 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 was the strongest May result in three years.
Although the level of inquiry had increased during the past few months, farm prices were not moving up yet. Buyers remained cautious and were clearly doing their due diligence. There was also further anecdotal evidence of finance becoming easier to source for good quality farms, Mr Peacocke said.
In Otago, the median selling price per hectare fell to $7456 in May, from $8469 in April and $10,923 in May last year.
There were 40 farms sold - compared with 38 in April and 28 in May last year - comprising 18 grazing, 13 finishing, three arable, three horticulture and two dairy units.
The median price of lifestyle blocks in the region eased to $477,500 in May, from $480,000 in April, but up from $386,500 in May last year. There were 76 lifestyle blocks sold.
In Southland, 59 farms were sold in May - the most of any region in New Zealand - compared with 47 in April and 31 in May last year.
They comprised 24 grazing units, 18 dairy, 15 finishing, one arable and one special. The median selling price per hectare was steady at $22,149.
Figures released by the Real Estate Institute of New Zealand show a further strong rise in the number of rural sales throughout New Zealand in the three months to the end of May.
Overall, there were 364 farm sales in that period, compared with 290 sales in the three months to April 30 this year, and 319 sales in the three months to May 2010.
The median price per hectare was $17,199, compared with $17,938 in the previous three months and $18,230 for the three months ending May 2010.
The Waikato region recorded the strongest increase in sales between April and May, followed by Canterbury and Southland.
The increase in farm sales that came through in the April data had continued into May, with a further rise 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 was the strongest May result in three years.
Although the level of inquiry had increased during the past few months, farm prices were not moving up yet. Buyers remained cautious and were clearly doing their due diligence. There was also further anecdotal evidence of finance becoming easier to source for good quality farms, Mr Peacocke said.
In Otago, the median selling price per hectare fell to $7456 in May, from $8469 in April and $10,923 in May last year.
There were 40 farms sold - compared with 38 in April and 28 in May last year - comprising 18 grazing, 13 finishing, three arable, three horticulture and two dairy units.
The median price of lifestyle blocks in the region eased to $477,500 in May, from $480,000 in April, but up from $386,500 in May last year. There were 76 lifestyle blocks sold.
In Southland, 59 farms were sold in May - the most of any region in New Zealand - compared with 47 in April and 31 in May last year.
They comprised 24 grazing units, 18 dairy, 15 finishing, one arable and one special. The median selling price per hectare was steady at $22,149.
