New Year Easing In Rural Property Market

NEWS RELEASE 26 FEBRUARY, 2002

New Year Easing In Rural Property Market

The rural property market eased slightly in the first month of 2002, with both the national sales volume and national median price for January, falling on the figures recorded for both December 2001 and January 2001, according to the latest rural property statistics released today by the Real Estate Institute of New Zealand.

Rural spokesperson for the Institute, Mr Murray Cleland said today that the latest figures were not surprising given the exceptionally strong sales volume and median price experienced during the last quarter of 2001.

He said, “It is inevitable that the recent high levels of activity and value of the transactions would begin to level, and traditionally the Christmas/New Year period is less active in the rural property market. With Decembers statistics being unusually high, I believe we are merely seeing a seasonal easing in January’s figures.”

According to statistics released today by the Institute, the national sales volume for January was 201, compared to the December sales volume of 330 and the January 2001 volume of 235.

The national median sale price for January was $700,000 compared to December at $758,079, and the January 2001 median of $702,500.

The national sales volume for January in the lifestyle block market firmed on year-to-year comparison but eased on a month-to-month basis, while the national median price eased from both last month and last year, with 424 transactions at a median sales price of $205,000, compared to 488 sales in December at $219,000 and 408 in January 2001 at $210,000.

The national median sale price for farms has eased by 0.36 per cent from January 2001, with those sectors having firmed from a year ago including grazing property, firming by 3.91 per cent; finishing property, firming by 8.8 per cent; dairy property, firming by 47.46 per cent and dairy property, firming by 47.46 per cent.

The only sectors whose median price did not improve from January 2001 were arable property, easing by 5.0 per cent; and South Island High Country merino property, with no sales recorded in either January 2001 or 2002.

The demand for dairy properties eased on both month-to-month and year-to-year comparison, with 41 properties changing hands during January, compared to 88 in December 2001 and 78 in January 2001.

The January 2002 median sale price for dairy properties of $1,600,000 was up on both the $1,085,000 recorded in January 2001, and the $1, 429,500 recorded in December 2001.

The national arable property median sale price was down on both a year to year and month to month basis, from $1,400,000 in January 2001 and $1,840,000 in December to $1,330,000 in the latest period, while sales rose to thirteen from the nine recorded in January 2000, and the eight sales recorded in December 2001.

Horticultural property sales eased on year-to-year comparison and rose on a month-to-month basis, with 25 sales in January compared to 23 sales in December 2001 and 31 sales in January 2001. The median price rose from last year and fell from last month, from $385,000 in January 2001 to $580,000 in the latest period, and compared to $600,000 in December 2001.

Finishing property sales eased on both year-to-year and month-to-month comparison, with 41 sales in January 2002 and 83 in December 2001,compared to 44 sales in January 2001. The median price rose from last month and last year with $781,250 in January 2001 and $726,720 in December 2001, compared to $850,000 January 2002.

Seventy six grazing properties sold in January, down on the 109 sales in December but up from the 74 sales recorded in January 2001. The median sale price was up from last year and down from last month, from $409,000 in January 2001 and $477,000 in December 2001, to the $425,000 recorded in January 2002.

-ENDS-

For further information contact:
Mr Murray Cleland, REINZ Councillor Phone: (021) 950 445
Issued by sorensen group Phone: (029) 230 5768

Regional highlights:

Northland
Fourteen farm sales were recorded in Northland in January, three less than December and four less than the sales in January 2001. Seven grazing, one finishing, two horticultural, and four dairy properties made up the total. The median farm price was $542,500, compared with $660,000 in December and $572,500 in January 2001.

A total of 32 lifestyle block sales were recorded for January, compared to 39 in December and 37 sold in January 2001. The median lifestyle block price was $127,000, up on December’s $115,000 and down on the $173,334 recorded in January 2001.

Auckland
Twelve farms sold in the Auckland region in January, six less than December 2001 and three less than in January 2001. Sales comprised one dairy, two horticultural, one finishing and eight grazing properties. The median farm price was $470,000, compared with $545,500 in December and $610,000 in January 2001.

Sales of lifestyle blocks eased on both a month-to-month and year-to-year comparison with 72 sales recorded, compared with 107 in December 2001 and 95 in January 2001. The median lifestyle block price was $296,500, compared with $360,000 in December and $280,000 in January 2001.

Waikato
The 33 farms sold in the Waikato were thirty less than December and twelve less than the sales recorded for January 2001. The sales comprised eight grazing, 18 dairy, three special and four finishing properties. The median farm price was $1,280,000, compared with $1,000,000 in December and $900,000 in January 2001.

Forty lifestyle blocks sold during January, compared to 41 in January 2001, and 46 in December 2001. The median lifestyle block price was $226,500, compared with $207,500 in December and $230,000 in January last year.

Bay of Plenty
Twenty-eight farms were sold, thirteen more than in December 2001 and seventeen more than January last year. Sixteen horticultural, six dairy, one finishing, two special and three grazing properties made up the total. The median farm price was $775,000, compared with $930,000 in December and $780,000 in January 2001.

Thirty-one lifestyle blocks were sold, two more than December and five more than January 2001. The median lifestyle block price was $260,000 for January, more than the $255,000 recorded for December but less than the $270,000 in January 2001.

Gisborne
One property changed hands in Gisborne during January, equivalent with December 2001 and one less than January of last year. The median farm price was $420,000, compared with $415,000 in December 2001 and $715,201 twelve months ago.

Four lifestyle blocks changed hands in the region, two more than December and four more than the same month last year. The median lifestyle block price was $79,500, compared with $92,500 in December.

Hawkes Bay
Six farm settlements took place during January, eleven less than December 2001 and ten less than in January last year. Two grazing and four finishing properties comprised the total. The median farm price was $660,000, compared with $551,000 in December and $447,500 in January 2001.

Lifestyle block sales rose to 31 in January from 16 in December and compared to 19 sales in January last year. The median lifestyle block price was $215,000, compared with $208,500 in December 2001 and $211,500 last January.

Taranaki
Six farms changed hands in Taranaki, compared with 33 in December 2001 and ten in January 2001. Three grazing, one finishing, and two dairy properties comprised the total farm sales. The median farm price was $196,000, compared with $950,000 in December and $600,000 in January 2001.

Fifteen lifestyle blocks changed hands in the region, four less than December and twelve more than January 2001. The lifestyle block median price was $200,000, compared with $143,500 last month and $165,000 last January.

Manawatu/Wanganui
Farm sales eased from last month - from 20 for December to 18 in January 2002, and compared to 12 sales in January 2001. Ten grazing, three dairy, two finishing, one horticultural, and two special properties comprised the total. The median farm price was $359,000, compared with $915,000 in December and $363,750 in January 2001.

Lifestyle block sales fell to 25 from both the 34 recorded in December 2001 and the 32 recorded in January 2001. The median lifestyle block price was $130,000, compared with $105,500 in December and $121,250 in January 2001.

Wellington
Five properties, consisting of two finishing and three grazing properties changed hands in the Wellington region during January, compared to five farm transactions in January last year and six in December 2001. The median farm price was $260,000, compared with $531,500 in December and $290,000 in January 2001.

A total of 34 lifestyle blocks changed hands, five more than the 29 recorded in December 2001 and thirteen more than the 21 for January 2001. The median lifestyle block price rose to $175,250 compared to the December figure of $165,000 and the $168,000 recorded in January 2001.

Nelson/Marlborough
Farm sales fell in the Nelson/Marlborough region with eight sales for January, 22 for December, and seventeen sales recorded in January 2001. Five grazing, one dairy, and two horticultural properties made up the farm sales in the region. The median farm price was $627,500, compared with $302,500 in December and $385,000 in January 2001.

Twenty-four lifestyle blocks sold and the median price was $182,500, compared with $275,000 in December when 35 were sold and $263,000 in January last year when 23 blocks changed hands.

West Coast
The seven transactions that took place on the West Coast during January compared to no farm transactions in December 2001 and six in January 2001.

Four lifestyle blocks sold in the region, three less than December 2001 and two more than January 2001.

Canterbury
A total of 41 farms changed hands in January, compared with 47 in December and 20 in January last year. There were three special, seven arable, two dairy, seventeen grazing, and twelve finishing properties sold. The median farm price was $570,000, compared with $1,165,000 in December and $1,139,500 in January 2001.

Lifestyle block sales rose on a month-to-month and year to year basis, with 75 changing hands for January, compared to 70 in December 2001 and the 59 sales recorded in January 2001. The median lifestyle block price for the region was $212,000 compared to $213,000 in December and $214,500 in January last year.

Otago
Fourteen farms were sold in Otago comprising one horticultural, one dairy, three grazing and nine finishing properties. This compared with 33 sales in January last year and 31 in December. The median farm price was $842,500, compared with $505,000 in December and $403,000 in January 2001.

Twenty-two lifestyle blocks changed hands in the region, seventeen less than December 2001 and nine less than sales in January 2001. The median lifestyle block price was $190,750, up on both December’s $184,000 and the $160,000 recorded in January 2001.

Southland
The median farm price in Southland was $1,081,425 compared with $728,360 in December and $870,000 in January 2001.Eight farms changed hands compared to 40 in December and 25 in January last year. There were four finishing, three grazing and one dairy property sold.

Lifestyle block sales fell from 16 for December to 15 for January and compared to 19 in January 2001. The median lifestyle block price was $151,000, up on both December’s $90,000 and the $140,000 recorded in January 2001.

NUMBER OF SALES AND MEDIAN SALES PRICE
BY DISTRICT – JANUARY 2002

All Farms
All Lifestyle
No. of Sales Median No. of Sales Median
Northland 14 542,500 32 127,000
Auckland 12 470,000 72 296,500
Waikato 33 1,280,000 40 226,500
Bay of Plenty 28 775,000 31 260,000
Gisborne 1 420,000 4 79,500
Hawkes Bay 6 660,000 31 215,000
Taranaki 6 196,000 15 200,000
Manawatu/
Wanganui 18 359,000 25 130,000
Wellington 5 260,000 34 175,250
Nelson/
Marlborough 8 627,500 24 182,500
West Coast 7 740,000 4 140,000
Canterbury 41 570,000 75 212,000
Otago 14 842,500 22 190,750
Southland 8 1,081,425 15 151,000

TOTAL 201 $700,000 424 $205,000

NUMBER OF SALES BY FARM TYPE – JANUARY 2002

Arable Dairy Fattening Forestry Grazing Horticultural Sth Island High Country Special

Northland - 4 1 - 7 2 - -
Auckland - 1 1 - 8 2 - -
Waikato - 18 4 - 8 - - 3
Bay of Plenty - 6 1 - 3 16 - 2
Gisborne - - - - - 1 - -
Hawkes Bay - - 4 - 2 - - -
Taranaki - 2 1 - 3 - - -
Manawatu/Wanganui - 3 2 - 10 1 - 2
Wellington - - 2 - 3 - - -
Nelson / Marlborough - 1 - - 5 2 - -
West Coast - 2 - - 4 - - 1
Canterbury 7 2 12 - 17 - - 3
Otago - 1 9 - 3 1 - -
Southland - 1 4 - 3 - - -

TOTAL 7 41 41 76 25 11

FARMS - SALES AND MEDIAN PRICE BY DISTRICT
JANUARY 2001 DECEMBER 2001 JANUARY 2002
#. of Sales Median #. of Sales Median #. of Sales Median

Northland 18 572,500 17 660,000 14 542,500
Auckland 15 610,000 18 545,000 12 470,000
Waikato 45 900,000 63 1,000,000 33 1,280,000
Bay of Plenty 11 780,000 15 930,000 28 775,000
Gisborne 2 715,201 1 415,000 1 420,000
Hawke’s Bay 16 447,500 17 551,000 6 660,000
Taranaki 10 660,000 33 950,000 6 196,000
Manawatu/
Wanganui 12 363,750 20 915,000 18 359,000
Wellington 5 290,000 6 531,500 5 260,000
Nelson/
Marlborough 17 385,000 22 302,500 8 627,500
West Coast 6 352,000 7 740,000
Canterbury 20 1,139,500 47 1,165,000 41 570,000
Otago 33 403,000 31 505,000 14 842,500
Southland 25 870,000 40 728,360 8 1,081,425

TOTAL 235 $702,500 330 $758,079 201 $700,000

JANUARY 1998 JANUARY 1999 JANUARY 2000
# of Sales Median # of Sales Median # of Sales Median

Northland 5 375,000 3 190,000 14 559,000
Auckland 6 606,000 7 405,000 6 410,000
Waikato 14 610,000 12 1,205,000 21 757,500
Bay of Plenty 13 410,000 11 620,000 3 820,000
Gisborne 3 232,270 1 136,000 3 300,000
Hawke’s Bay 3 380,000 10 377,500 8 407,500
Taranaki 8 238,500 15 820,000 14 675,000
Manawatu/
Wanganui 7 450,000 15 290,000 12 380,000
Wellington 3 515,000 2 540,000 3 562,000
Nelson/
Marlborough 12 186,000 4 683,000 8 350,000
West Coast 3 130,000 2 77,500 - -
Canterbury 12 532,500 17 535,000 13 550,000
Otago 9 175,000 12 531,000 8 460,000
Southland 9 238,500 6 748,093 15 300,000

TOTAL 107 $380,000 117 $548,000 128 $526,500

LIFESTYLE BLOCKS - SALES AND MEDIAN PRICE BY DISTRICT

JANUARY 2001 DECEMBER 2001 JANUARY 2002
# of Sales Median # of Sales Median # of Sales Median

Northland 37 173,334 39 115,000 32 127,000
Auckland 95 280,000 107 360,000 72 296,500
Waikato 41 230,000 46 207,500 40 226,500
Bay of Plenty 26 270,000 29 255,000 31 260,000
Gisborne - 2 92,500 4 79,500
Hawke’s Bay 19 211,500 16 208,500 31 215,000
Taranaki 3 165,000 19 143,500 15 200,000
Manawatu/
Wanganui 32 121,250 34 105,500 25 130,000
Wellington 21 168,000 29 165,000 34 175,250
Nelson/
Marlborough 23 263,000 35 275,000 24 182,500
West Coast 2 122,500 7 70,000 4 140,000
Canterbury 59 214,500 70 213,000 75 212,000
Otago 31 160,000 39 184,000 22 190,750
Southland 19 140,000 16 90,000 15 151,000

TOTAL 408 $210,000 488 $219,000 424 $205,000

JANUARY 1998 JANUARY 1999 JANUARY 2000
# of Sales Median # of Sales Median # of Sales Median

Northland 34 117,500 19 125,000 38 107,500
Auckland 85 440,000 68 272,500 52 351,000
Waikato 20 117,500 34 221,250 66 218,250
Bay of Plenty 47 175,000 24 208,500 26 247,500
Gisborne 1 172,000 1 365,000 5 132,000
Hawke’s Bay 7 160,000 12 143,750 16 187,500
Taranaki 9 115,000 8 131,000 10 156,000
Manawatu/
Wanganui 31 126,000 24 135,000 44 106,500
Wellington 20 152,250 36 162,500 26 185,000
Nelson/
Marlborough 20 225,000 19 220,000 19 170,000
West Coast 4 77,500 8 71,500 7 125,000
Canterbury 25 165,000 48 164,000 54 175,000
Otago 12 95,000 25 104,000 21 175,000
Southland 7 100,000 6 103,000 24 147,500

TOTAL 322 $174,000 332 $185,000 408 $175,000

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