The agricultural property market seems to be in good coronary heart because it heads in direction of winter, with the variety of properties bought and the costs achieved each up year-on-year.
In accordance with the Actual Property Institute of New Zealand, 390 farms have been bought within the three months to the top of March, up 41% in comparison with the identical interval of final yr.
Within the 12 months to the top of March, 1549 farms have been bought, up 27% in comparison with the earlier 12 months.
Dairy farm gross sales have been notably sturdy with gross sales up 124% within the three months to March in comparison with a yr earlier, with grazing property gross sales up 52%, and ending farm gross sales up 41%.
Nonetheless dairy assist gross sales have been down 9% in comparison with a yr in the past and arable farm gross sales have been down 41%.
Way of life block gross sales have been additionally stronger, with 1946 way of life gross sales within the three months to March, up 9% in comparison with the identical interval of final yr.
Within the 12 months to March 8974 way of life properties have been bought, up 25% in comparison with the earlier 12 months.
Costs have been additionally firmer, with the REINZ All Farm Value Index, which adjusts for variations within the mixture of farms bought by dimension, sort and placement, up 6% in March in comparison with 12 months beforehand.
The REINZ Diary Farm Value Index, which adjusts for variations within the mixture of dairy farms bought by dimension and placement, was up 16% in comparison with a yr earlier.
The median worth for all way of life properties bought within the three months to March was $850,000, up 20% in comparison with a yr earlier.
REINZ’s rural spokesman Brian Peacocke mentioned autumn circumstances for farmers in lots of areas have been one of the best they’d been in a few years, though elements of the East Coast of the North Island have been affected by a scarcity of rain.
“Product costs are variable with the dairy and horticultural sectors more likely to obtain outcomes which rank amongst one of the best for a great whereas, whereas beef and lamb costs mirror the traditional seasonal constraints,” he mentioned.
Low rates of interest and an elevated willingness by banks to lend into the agricultural sector have been additionally serving to the agricultural property market, he mentioned.
There are extra particulars of farms bought here.