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There were 256 fewer farm sales (-46.6%) for the three months ended December 2021 than for the three months ended December 2020, according to data released by the Real Estate Institute of New Zealand (REINZ).
Overall, there were 293 farm sales in the last three months of the year, compared to 361 farm sales in the three months to November 2021 (-18.8%) and 549 farm sales for the three months ended December 2020.
A total of 1831 farms were sold last year, 235 more than were sold in 2020, with 84% more dairy farms, 23% less dairy support, seven per cent more grazing farms, 10% more finishing farms and 15% less arable farms sold over the same period.
The median price per hectare for all farms sold in the three months to last December was $37,980 compared to $27,320 recorded for same period in 2020 (+39%). The median price per hectare increased 0.7% compared to November 2021.
One region (Otago with +six sales) recorded an increase in the number of farm sales for the three months to December compared to 2020. Manawatu-Whanganui (-46 sales) and Waikato (-45 sales) recorded the biggest decreases in sales. Compared to the three months ended November 2021, no regions recorded an increase in sales.
REINZ rural spokesperson Brian Peacocke says easing sales volumes, compared to similar periods over the last three years, impacted all categories.
“Logic would suggest that due to the very strong forecast for the dairy pay-out for the 2021/22 season, and particularly strong prices for beef, lamb and horticultural products, fewer rural properties have been available for sale, as landowners have retained properties in order to capitalise on the current high product returns,” he says.
“Nevertheless, the total volume of farm sales for the 2021 calendar year increased considerably from 2020, again reinforcing the strong demand for continuing investment in rural land that, in itself, being a reflection of confidence in the agricultural sector.
“On a balancing note, however, while the banking sector is currently more amenable to backing soundly structured lending proposals, the inexorable grind of increasing costs, the shortage of quality labour and supply chain difficulties are well recognised constraints that continue to challenge the rural industry.”
Northland/ Auckland
A light spread of dairy farm sales but a good increase in sales of finishing and grazing properties throughout Northland and the Rodney district to the north of Auckland city. Prices remain at a constant level.
