Seasonal Forces At Work In Rural Property Market

Both the national sales volume and the national median sale price for rural property have eased from those recorded in April 2001, but both figures are well improved on those recorded in May 2000, according to Mr Murray Cleland, rural spokesperson for the Real Estate Institute of New Zealand.

Mr Cleland said today that the easing median was representative of seasonal differences rather than indicative of the overall health of the rural market.

“While the national median price has fallen, the impact of reduced demand for dairy properties during May must be taken into account as dairy farms are some of the highest value rural properties. This change in volume is a seasonal event that should not be misinterpreted as a lack of confidence within the market.”

“Statistics for the rural sector are always more valuable when assessed over a longer term as month to month fluctuations can be caused by the sale of a single large property. While April’s figures appear impressive in comparison to May, the real message is that when the latest figures are compared to May 2000, the news is all good.”

According to statistics released today by the Institute, both the national median sales price and national sales volume for May 2001 have risen over May 2000 and eased from April 2001.

The national sales volume for May 305, compared to the April sales volume of 315 and the May 2000 volume of 211.

The national median sale price for May was $584,000, compared to the April median of $765,000 and the May 2000 median of $575,000.

Both sales and values in the lifestyle block market firmed from both April and those recorded in May 2000.
Statistics for May reported 519 transactions at a median sales price of $216,000, compared to 514 sales in April at $212,000 and 438 in May 2000 at $192,500.

The demand for dairy properties eased on both a month-to-month basis and year-to-year comparison, with 52 properties changing hands during May, compared to 85 in April 2001 and 59 in May 2000.

The May 2001 median sale price for dairy properties of $970,000 was up on the $763,240 recorded in May 2000, but well down on the $1,500,000 recorded in April 2001.

The national median sale price has increased by 1.56 per cent from May 2000 and all sectors bar four have recorded an improvement on a year ago, those being forestry property, easing 37.13 per cent; finishing property, easing 23.61 per cent; arable property, easing 16.89 per cent and High Country Merino, where no comparison is possible due to sales recorded in May 2000.

Those sectors whose median price has increased from May 2000 include horticultural property, improved by 44.57 per cent; dairy property, increasing by 27.08 per cent; and grazing property, increasing by 14.83 per cent.

The national arable property median sale price was down on both a year to year and month to month basis, from $675,000 in May 2000 and $1,665,000 in April to $561,000 in the latest period, while sales rose to ten from the nine recorded in May 2000, and the eight sales recorded in April 2001.

Horticultural property sales eased on both year-to-year and month-to-month comparison, with 29 sales in May 2001 compared to 31 sales in May 2000 and 30 sales in April 2001. The median price rose from last year and last month, from $415,000 in May 2000 to $60,000 in the latest period, and $475,000 in April 2001.

The median price for finishing properties was down from last month and last year, with $555,000 recorded in May 2001 compared to $680,000 in April and $726,500 twelve months ago.

The sales volume for May was also up from last month, but firmed from last year at 58 in May 2001 from 32 a year ago and the 69 recorded in April 2001.

One hundred and thirty-seven grazing properties sold in May, up on the 112 sales in April and the 66 recorded in May 2000. The median sale price was up from last year but down from last month, from $387,500 in May 2000 and $480,000 in April 2001, to the $445,000 recorded in May 2001.

-ENDS-

Regional highlights:

Northland
Twenty farm sales were recorded in Northland in May, two less than May last year and one more than April. Eleven grazing, four finishing, one horticultural and four dairy properties made up the total. The median farm price was $475,000, compared with $700,000 in April and $525,000 in May 2000.

A total of 39 lifestyle block sales were recorded for May, three less than April and four more than the 35 sold in May 2000. The median lifestyle block price was $190,000, down on both April’s $205,000 and the $139,500 recorded in May 2000.

Auckland
Eighteen farms sold in the Auckland region in May, one less than April 2001 and six more than May 2000. Sales comprised four dairy, three horticultural, and eleven grazing properties. The median farm price was $509,000, compared with $880,000 in April and $498,750 in May 2000.

Sales of lifestyle blocks fell on a month-to-month basis and rose on year-to-year comparison with 98 sales recorded, compared with 117 in April 2001 and 82 in May 2000. The median lifestyle block price was $305,500, compared with $315,000 in April and $320,000 in May 2000.

Waikato
The 47 farms sold in the Waikato were fourteen more than May last year and seventeen less than the sales recorded for April. The sales comprised 27 grazing, 13 dairy, three finishing, three special and one horticultural property. The median farm price was $775,000, compared with $1,000,000 in April and $725,000 in May 2000.

Fifty-five lifestyle blocks sold during May, compared to 57 in May 2000, and 44 in April. The median lifestyle block price was $193,000, compared with $225,000 in April and $204,500 in May last year.

Bay of Plenty
Twenty-seven farms were sold, eight more than in April 2001 and seven more than in May last year. Twelve horticultural, six dairy, and nine grazing properties made up the total. The median farm price was $700,000, compared with $1,100,000 in April and $567,500 in May 2000.

Fourty-eight lifestyle blocks were sold, two less than April and eleven more than May 2000. The median lifestyle block price was $258,750 for May, more than both the $212,500 recorded for April and the $212,500 in May 2000.

Gisborne
Eleven properties changed hands in Gisborne during May, four more than the seven sales recorded in both April 2001 and May of last year. The median farm price was $270,000, compared with $900,000 in April 2001 and $400,000 twelve months ago.

Six lifestyle blocks changed hands in the region, consistent with in April and five more than the same month last year.

Hawkes Bay
Sixteen farm settlements took place during May, seven more than April 2001 and eleven more than in May last year. Six grazing, one arable, one dairy, four finishing and four horticultural properties comprised the total. The median farm price was $795,000, compared with $290,000 in April and $360,000 in May 2000.

Lifestyle block sales rose to 26 in May from 18 in April and the 122 sales in May last year. The median lifestyle block price was $228,500, compared with $163,500 in April and $158,250 last May.

Taranaki
Nine farms changed hands in Taranaki compared with fifteen in April and three in May 2000. One grazing, one special, and seven dairy properties comprised the total farm sales. The median farm price was $571,600, compared with $750,000 in April and $805,000 in May 2000.

Nine lifestyle blocks changed hands in the region, five less than both April and May 2000. The lifestyle block median price was $116,000, compared with $185,050 last month and $110,000 last May.

Manawatu/Wanganui
Farm sales fell by nine from last month to 21 for May 2001, and compared to 27 sales in May 2000. Fourteen grazing, one dairy, two arable, and four finishing properties comprised the total. The median farm price was $415,000, compared with $516,000 in April and $540,000 in May 2000.

Lifestyle block sales rose to 39 from the 39 recorded in April 2001 and was equal to the 39 sales recorded in May 2000. The median lifestyle block price was $175,000, compared with $155,750 in April and $132,000 in May 2000.

Wellington
Eleven properties, consisting of one special, two finishing and eight grazing properties changed hands in the Wellington region during May, compared to four farm transactions in May last year and seven in April 2001. The median farm price was $360,000, compared with $1,275,000 in April and $190,125 in May 2000.

A total of 40 lifestyle blocks changed hands, three more than the 37 recorded in April 2001 and equal to the 40 for May 2000. The median lifestyle block price fell to $143,750 compared to the April figure of $165,000 and the $172,500 recorded in May 2000.

Nelson/Marlborough
Farm sales rose in the Nelson/Marlborough region with seventeen sales for May, fourteen for April, and ten sales recorded in May 2000. Eight grazing, three finishing, one forestry, one dairy and four horticultural properties made up the farm sales in the region. The median farm price was $420,000, compared with $557,500 in April and $360,000 in May 2000.

Twenty-nine lifestyle blocks sold and the median price was $240,000, compared with $172,500 in April when 30 were sold and $202,500 in May last year when 19 blocks changed hands.

West Coast
One forestry and one grazing property changed hands on the West Coast during May – compared to five farm transactions in both April 2001 and May 2000.

Five lifestyle blocks sold in the region, equal to April 2001 and three less than May 2000.

Canterbury
A total of 25 farms changed hands in May, compared with 26 in April and 24 in May last year. There were two special, one forestry, five arable, eight grazing, six finishing, and three dairy properties sold. The median farm price was $670,000, compared with $1,100,000 in April and $500,000 in May 2000.

Lifestyle block sales fell on a month-to-month basis, with 68 changing hands for May, compared to 73 in April 2001 and rose on a year to year basis, compared to the 59 sales recorded in May 2000. The median lifestyle block price for the region was $217,500 compared to $230,000 in April and $169,000 in May last year.

Otago
Thirty-seven farms were sold in Otago comprising one dairy, one arable, one horticultural, nineteen grazing, one High Country Merino, two forestry and twelve finishing properties. This compared with ten sales in May last year and 27 in April. The median farm price was $610,000, compared with $510,000 in April and $645,000 in May 2000.

Thirty-six lifestyle blocks changed hands in the region, five less than April 2001 and fifteen more than in May 2000. The median lifestyle block price was $173,750, up on April’s $143,000 and down on the $188,000 recorded in May 2000.

Southland
The median farm price in Southland was $527,500, compared with $764,000 in April and $800,000 in May 2000.Fourty-four farms changed hands compared to 54 in April and 29 in May last year. There were 20 finishing, eleven dairy, one arable, six special and six grazing properties sold.

Lifestyle block sales fell from 22 in April to 21 in May and compared to 11 in May 2000. The median lifestyle block price was $150,000, up on both April’s $118,500 and $148,000 in May 2000.

NUMBER OF SALES AND MEDIAN SALES PRICE BY DISTRICT – MAY 2001

All Farms
All Lifestyle
No. of Sales Median No. of Sales Median
Northland 20 475,000 39 190,000
Auckland 18 509,000 98 305,500
Waikato 47 775,000 55 193,000
Bay of Plenty 27 700,000 48 258,750
Gisborne 11 270,000 6 240,000
Hawkes Bay 16 795,000 26 228,500
Taranaki 9 571,600 9 116,000
Manawatu/
Wanganui 21 415,000 39 175,000
Wellington 11 360,000 40 143,750
Nelson/
Marlborough 17 420,000 29 240,000
West Coast 2 119,000 5 55,000
Canterbury 25 670,000 68 217,500
Otago 37 610,000 36 173,750
Southland 44 527,500 21 150,000
TOTAL 305 $584,000 519 $216,000

NUMBER OF SALES BY FARM TYPE – MAY 2001
Arable Dairy Fattening Forestry Grazing Horticultural Sth Island High Country Special

Northland 4 4 11 1
Auckland 4 11 3
Waikato 13 3 27 1 3
Bay of Plenty 6 9 12
Gisborne 8 3
Hawkes Bay 1 1 4 6 4
Taranaki 7 1 1
Manawatu/
Wanganui 2 1 4 14
Wellington 2 8 1
Nelson / Marlborough 1 3 1 8 4
West Coast 1 1
Canterbury 5 3 6 1 8 2
Otago 1 1 12 2 19 1 1
Southland 1 11 20 6 6
TOTAL 10 52 58 5 137 29 1 13

FARMS - SALES AND MEDIAN PRICE BY DISTRICT
MAY 2000 APRIL 2001 MAY 2001
#. of Sales Median #. of Sales Median #. of Sales Median

Northland 22 525,000 19 700,000 20 475,000
Auckland 12 498,750 19 880,000 18 509,000
Waikato 33 725,000 64 1,000,000 47 775,000
Bay of Plenty 20 567,500 19 1,100,000 27 700,000
Gisborne 7 400,000 7 900,000 11 270,000
Hawke’s Bay 5 360,000 9 290,000 16 795,000
Taranaki 3 805,000 15 750,000 9 571,600
Manawatu/
Wanganui 27 540,000 30 516,000 21 415,000
Wellington 4 190,125 7 1,275,000 11 360,000
Nelson/
Marlborough 10 360,000 14 557,500 17 420,000
West Coast 5 675,000 5 430,000 2 119,000
Canterbury 24 500,000 26 1,100,000 25 670,000
Otago 10 645,000 27 510,000 37 610,000
Southland 29 800,000 54 764,000 44 527,500

TOTAL 211 $575,000 315 $765,000 305 $584,000

MAY 1998 MAY 1999
# of Sales Median # of Sales Median

Northland 11 850,000 16 505,000
Auckland 12 592,500 9 565,000
Waikato 26 588,500 36 884,000
Bay of Plenty 15 430,000 21 475,000
Gisborne 3 317,500 2 945,000
Hawke’s Bay 8 292,500 10 362,500
Taranaki 5 770,000 16 512,500
Manawatu/
Wanganui 19 350,000 23 405,080
Wellington 8 435,000 9 450,000
Nelson/
Marlborough 10 288,000 13 355,000
West Coast 1 775000 6 539175
Canterbury 20 462,500 23 410,000
Otago 10 605,000 11 650,000
Southland 10 475,000 32 495,000

TOTAL 158 $496,250 227 $500,000

LIFESTYLE BLOCKS - SALES AND MEDIAN PRICE BY DISTRICT

MAY 2000 APRIL 2001 MAY 2001
# of Sales Median # of Sales Median # of Sales Median

Northland 35 139,500 42 205,000 39 190,000
Auckland 82 320,000 117 315,000 98 305,500
Waikato 44 204,500 57 225,000 55 193,000
Bay of Plenty 43 212,500 30 212,500 48 258,750
Gisborne 1 41,500 6 280,750 6 240,000
Hawke’s Bay 22 158,250 18 163,500 26 228,500
Taranaki 14 110,000 14 185,050 9 116,000
Manawatu/
Wanganui 39 132,000 38 155,750 39 175,000
Wellington 40 172,500 37 165,000 40 143,750
Nelson/
Marlborough 19 202,500 30 172,500 29 240,000
West Coast 8 43,000 5 141,000 5 55,000
Canterbury 59 169,000 73 230,000 68 217,500
Otago 21 188,000 25 143,000 36 173,750
Southland 11 148,000 22 118,500 21 150,000

TOTAL 438 $192,500 514 $212,000 519 $216,000

MAY 1998 MAY 1999
# of Sales Median # of Sales Median

Northland 37 128,000 39 150,000
Auckland 68 315,000 93 290,000
Waikato 51 156,000 51 206,500
Bay of Plenty 34 207,500 43 215,000
Gisborne 6 133,250 0
Hawke’s Bay 7 212,550 21 130,000
Taranaki 7 130,000 10 134,000
Manawatu/
Wanganui 35 105,000 35 120,000
Wellington 23 150,000 38 207,500
Nelson/
Marlborough 15 150,000 27 154,000
West Coast 5 55,000 5 57,000
Canterbury 55 170,000 71 163,000
Otago 17 157,000 18 86,500
Southland 4 95,000 9 66,500

TOTAL 364 $180,000 460 $180,000

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