Farm sales for the quarter to February were up 40% on a year
ago, with Otago and Taranaki posting some of the largest
gains in the number of farms sold.
In Otago, there had been an extremely strong market for sheep
and beef properties, partly because of a shortage of
listings, while in Taranaki there was continuing strong
demand, with most available properties sold, the Real Estate
Institute of New Zealand said this week.
For the year to February, there was a 26.6% boost in the
number of sales to 1829 farms, the largest number of sales in
a 12-month period since February 2009.
REINZ rural spokesman Brian Peacocke said the recent Fonterra
payout boost was welcomed by the sector, and was a boost to
the regional and national economies.
However, he sounded a note of caution because of issues
within the red meat sector, the semi-drought impact in areas
of the North Island, and the emerging reality of interest
rate increases in the short to medium term.
Compared with February 2013, the institute's ''all farm price
index'', which adjusts for differences in farm size, location
and farming type compared with the median price per hectare,
Overall, there were 534 farm sales, including lifestyle
properties, in the quarter to February. Otago and Taranaki
both recorded the largest increase in sales, up by 28,
followed by Northland (up 16 sales) and Bay of Plenty and
Southland (each up 15).
Lifestyle property sales rose 7.2% in the period, from 1403 a
year ago to 1504. The national median lifestyle price rose by
$21,000, up 4.2%, from $495,000 a year ago to $516,000, for
the three months to February 2014.