Farm sales

Good morale, financial stability contribute to the increase in farm sales

A total of 1,549 farms were sold in the year ending March 2021, an increase of 27.3 from the year ending March 2020.

“Sales figures for the three months ending March 2021 reflect solid activity in the rural sector, although most categories saw a slight decline in figures compared to the previous three months,” Brian said on Friday. Peacocke, rural spokesperson for REINZ.

“Horticulture and forestry were the exceptions, with horticulture maintaining par and forestry recovering from an earlier decline.”

Figures showed the median price per hectare for all farms sold in the three months to March 2021 was $25,665, compared to $22,660 recorded for the same period a year earlier, an increase of 13.3 %.

Ten of the 13 regions saw an increase in the number of agricultural sales for the three-month period, with Waikato (+37) and Taranaki (+14) recording the largest increase in sales. Gisborne/Hawke’s Bay saw the biggest drop in sales, eight fewer than in the same period of 2020.

Peacocke said the Reserve Bank’s recent decision to leave the official exchange rate unchanged had had a positive effect on the rural property market.

“Moral in the rural sector is generally good, influenced by the stability of the financial sector, as evidenced by both the current level of the official exchange rate which has an impact on interest rates, as well as the strength of the price dairy products, especially in the face of a strong New Zealand dollar,” he said.

“It should also be noted that all commercial banks are now more active in the rural sector than they have been in recent years, which is an important factor related to sales activity in the rural real estate market. “