Otago has recorded the strongest increase in rural property sales in New Zealand for May and June.
Figures released by the Real Estate Institute of New Zealand showed further improvement in the number of rural sales throughout New Zealand in the three months to June.
In Otago, 48 farms sold, compared with 40 in May and 27 in June last year. The farms comprised 25 grazing, 15 finishing, three arable, two dairy, two horticulture and one special.
The median selling price per hectare fell to $6778, from $7456 in May and $9450 in June last year.
In Southland, 60 farms sold in June - the most of any region in New Zealand - compared with 59 in May and 27 in June last year.
Those farms comprised 30 grazing, 16 dairy, 11 finishing and three special farms. The median selling price per hectare eased to $21,619, compared with $22,149 in May and $16,607 in June last year.
The increase in sales for the three-month period continued the turnaround in volumes that began in April although the rate of increase had slowed, REINZ rural market spokesman Brian Peacocke said.
The overall increase in activity from both buyers and sellers was being matched by a reinvigoration of interest in rural lending coming through from the banking sector, Mr Peacocke said.
Overall, there were 393 farm sales in the three-month period, compared with 364 sales in the three months to May, and 302 sales in the three months to June 2010.
The median price per hectare for all farms sold in the three months to June was $15,568 compared with $17,199 in the three months to May and $17,772 for the three months to June 2010.
The median price per hectare is at its lowest point since July 2004 and continues the downward trend in median prices evident since early 2009.
The lifestyle property market also saw a further lift in volume, although the median price remained at the same level compared with May.
Otago also recorded a notable increase in sales volumes, with 88 properties sold in June, compared with 76 in May and 54 in June last year. The median price eased by $16,750 to $460,750 in June from $477,500 in May, but up from $369,000 in June last year.
