Activity High As Prices Rural Properties Stabilise

08 APRIL, 2002

Activity High As Prices Stabilise In Rural Property Market

The national media farm sales price has eased for the first two month’s of 2002, with national median price for February falling on the figures recorded for both January 2002 and February 2001, while the national sales volume rose from both last month and last year, 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 indicated the rural market was leveling, despite the significant easing in the national median price on year to year comparison.

He said, “Last February’s national median sales price was the highest median recorded for a February in the history of the Real Estate Institute of New Zealand rural report and the national median sales volume for February 2001 was the highest recorded for a February since 1996.”

“As such, we have to regard the most recent statistics in the larger context. February 2002 is in fact now the highest sales volume for any February since 1996, and for the national median price for February 2002 to be unable to reach the record breaking highs of last year is neither surprising, nor dismaying.”

Mr Cleland said that the slight easing in national median price from January was not particularly significant.

“The rural market has experienced a very strong period of growth, and I believe now is beginning to stabilise. In fact it is arguable that the rural property market needs to do so, in order to avoid ‘overheating’.”

According to statistics released today by the Institute, the national sales volume for February was 255, compared to the January sales volume of 201 and the February 2001 volume of 252.

The national median sale price for February was $680,000 compared to January at $700,000, and the February 2001 median of $780,000.

The national sales volume and the national median price for February in the lifestyle block market firmed on year-to-year and month-to-month comparison, with 528 transactions at a median sales price of $219,000, compared to 424 sales in January at $205,000 and 408 in February 2001 at $210,000.

The national median sale price for farms has eased by 12.83 per cent from February 2001, with those sectors having firmed from a year ago including arable property, firming by 21.81 per cent; horticultural property, firming by 3.39 per cent; forestry property, firming by 15.50 per cent and dairy property, firming by 1.91 per cent.

Those sectors whose median price did not improve from February 2001 were finishing property, easing by 4.30 per cent; grazing property, easing by 7.47 per cent; special property, easing by 45.62 per cent; and South Island High Country merino property, with no sales recorded in either February 2001 or 2002.

The demand for dairy properties eased on year-to-year comparison but rose on a month-to-month basis, with 80 properties changing hands during February, compared to 41 in January 2001 and 85 in February 2001.

The February 2002 median sale price for dairy properties of $1,544,000 was down on the $1,600,000 recorded in February 2001, and up on the $1, 515,000 recorded in January 2001.

The national arable property median sale price was down on a month to month basis but up on year to year comparison, from $580,000 in February 2001 and $1,400,000 in January to $706,508 in the latest period, while sales rose to eleven from the five recorded in February 2001, and the seven sales recorded in January 2002.

Horticultural property sales rose on year-to-year and month-to-month comparison, with 28 sales in February compared to 25 sales in January 2002 and 23 sales in February 2001. The median price rose from last year and fell from last month, from $405,000 in February 2001 to $418,750 in the latest period, and compared to $580,000 in January 2002.

Finishing property sales eased on both year-to-year and month-to-month comparison, with 40 sales in February 2002 and 41 in January 2002,compared to 52 sales in February 2001. The median price fell from last month and last year with $663,250 in February 2001 and $850,000 in January 2002, compared to $635,000 February 2002.

Eighty-three grazing properties sold in February, up from both the 76 sales in January and the 72 sales recorded in February 2001. The median sale price was down from last year and up from last month, from $475,500 in February 2001 and $425,000 in January 2002, to the $440,000 recorded in February 2002.

-ENDS-

Regional highlights:

Northland
Seventeen farm sales were recorded in Northland in February, three more than January equivalent to the sales in February 2001. Five grazing, two finishing, one horticultural, one forestry and eight dairy properties made up the total. The median farm price was $600,000, compared with $542,500 in January and $475,000 in February 2001.

A total of 40 lifestyle block sales were recorded for February, compared to 29 in January and 32 sold in February 2001. The median lifestyle block price was $131,250, up on January’s $127,000 and down on the $173,334 recorded in February 2001.

Auckland
Eight farms sold in the Auckland region in February, four less than January 2001 and one less than in February 2001. Sales comprised five dairy, and three grazing properties. The median farm price was $735,000, compared with $470,000 in January and $515,000 in February 2001.

Sales of lifestyle blocks rose on both a month-to-month and year-to-year comparison with 111 sales recorded, compared with 72 in January 2001 and 95 in February 2001. The median lifestyle block price was $342,000, compared with $296,500 in January and $280,000 in February 2001.

Waikato
The 32 farms sold in the Waikato were one less than January and twelve less than the sales recorded for February 2001. The sales comprised eight grazing, 23 dairy, and one forestry property. The median farm price was $1,165,000, compared with $1,280,000 in January and $1,157,500 in February 2001.

Sixty-four lifestyle blocks sold during February, compared to 41 in February 2001, and 40 in January 2001. The median lifestyle block price was $229,000, compared with $226,500 in January and $230,000 in February last year.

Bay of Plenty
Twenty-seven farms were sold, one less more than in January and sixteen more than February last year. Seventeen horticultural, five dairy, two finishing, and three grazing properties made up the total. The median farm price was $668,000, compared with $775,000 in January and $1,046,250 in February 2001.

Forty-five lifestyle blocks were sold, fourteen more than January and nineteen more than February 2001. The median lifestyle block price was $221,000 for February, less than the $260,000 recorded for January and the $270,000 in February 2001.

Gisborne
Four properties changed hands in Gisborne during February, three more than both January 2001 and than February of last year. The median farm price was $232,500, compared with $420,000 in January and $1,400,000 twelve months ago.

Six lifestyle blocks changed hands in the region, two more than January and six more than the same month last year. The median lifestyle block price was $171,000, compared with $79,500 in January.

Hawkes Bay
Four farm settlements took place during February, two less than January and four less than in February last year. Two grazing and two horticultural properties comprised the total. The median farm price was $347,500, compared with $660,000 in January and $975,000 in February 2001.

Lifestyle block sales fell to 22 in February from 31 in January and compared to 19 sales in February last year. The median lifestyle block price was $235,000, compared with $215,000 in January 2001 and $211,500 last February.

Taranaki
Twenty farms changed hands in Taranaki, compared with six in January 2001 and thirteen in February 2001. Six grazing, one special, and thirteen dairy properties comprised the total farm sales. The median farm price was $1,105,000, compared with $196,000 in January and $795,000 in February 2001.

Nineteen lifestyle blocks changed hands in the region, four more than January and sixteen more than February 2001. The lifestyle block median price was $145,000, compared with $200,000 last month and $165,000 last February.

Manawatu/Wanganui
Farm sales rose from last month - from eighteen for January to 22 in February 2002, and compared to twenty eight sales in February 2001. Twelve grazing, six dairy, and four finishing properties comprised the total. The median farm price was $912,500, compared with $281,000 in January and $363,750 in February 2001.

Lifestyle block sales rose to 32 from the 25 recorded in January 2001 and compared to the 32 sales recorded in February 2001. The median lifestyle block price was $156,750, compared with $130,000 in January and $121,250 in February 2001.

Wellington
Eight properties, consisting of one finishing, one dairy, one special and five grazing properties changed hands in the Wellington region during February, compared to four farm transactions in February last year and five in January 2002. The median farm price was $568,000, compared with $260,000 in January and $693,000 in February 2001.

A total of 35 lifestyle blocks changed hands, one more than the 34 recorded in January 2001 and fourteen more than the 21 for February 2001. The median lifestyle block price rose to $205,000 compared to the January figure of $175,250 and the $168,000 recorded in February 2001.

Nelson/Marlborough
Farm sales rose in the Nelson/Marlborough region with twelve sales for February, eight for January, and nine sales recorded in February 2001. Four grazing, one dairy, two forestry, two finishing, one arable and two horticultural properties made up the farm sales in the region. The median farm price was $463,000, compared with $627,500 in January and $455,000 in February 2001.

Twenty-seven lifestyle blocks sold and the median price was $240,000, compared with $182,500 in January when 24 were sold and $263,000 in February last year when 23 blocks changed hands.

West Coast
The four transactions that took place on the West Coast during February compared to seven farm transactions in January and none in February 2001.

Five lifestyle blocks sold in the region, one more than January and three more than February 2001.

Canterbury
A total of 43 farms changed hands in February, compared with 41 in January and 45 in February last year. There were four special, nine arable, five dairy, sixteen grazing, three horticultural, and six finishing properties sold. The median farm price was $640,000, compared with $570,000 in January and $790,000 in February 2001.

Lifestyle block sales fell on a month-to-month basis, with 60 changing hands for February, compared to 70 in January and the 59 sales recorded in February 2001. The median lifestyle block price for the region was $229,000 compared to $212,000 in January and $214,500 in February last year.

Otago
Twenty-two farms were sold in Otago comprising one arable, one special, three dairy, eight grazing and nine finishing properties. This compared with 33 sales in February last year and 14 in January. The median farm price was $642,500, compared with $842,500 in January and $650,000 in February 2001.

Forty-four lifestyle blocks changed hands in the region, twenty-two more than January and thirteen more than sales in February 2001. The median lifestyle block price was $185,000, up on both January’s $190,750 and the $160,000 recorded in February 2001.

Southland
The median farm price in Southland was $657,500 compared with $1,081,425 in January and $822,500 in February 2001.Thirty-two farms changed hands compared to eight in January and 30 in February last year. There were twelve finishing, nine grazing, two special and nine dairy properties sold.

Lifestyle block sales rose from fifteen for January to eighteen for February and compared to 19 in February 2001. The median lifestyle block price was $99,500, down on both January’s $151,000 and the $140,000 recorded in February 2001.

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

All Farms
All Lifestyle
No. of Sales Median No. of Sales Median
Northland 17 600,000 40 131,250
Auckland 8 735,000 111 342,000
Waikato 32 1,165,000 64 229,000
Bay of Plenty 27 668,000 45 221,000
Gisborne 4 232,500 6 171,000
Hawkes Bay 4 347,500 22 235,000
Taranaki 20 1,105,000 19 145,000
Manawatu/
Wanganui 22 912,500 32 156,750
Wellington 8 568,000 35 205,000
Nelson/
Marlborough 12 463,000 27 240,000
West Coast 4 116,500 5 115,000
Canterbury 43 640,000 60 229,000
Otago 22 462,500 44 185,000
Southland 32 657,500 18 99,500

TOTAL 255 $680,000 528 $219,000

NUMBER OF SALES BY FARM TYPE – FEBRUARY 2002

Arable Dairy Fattening Forestry Grazing Horticultural Sth Island High Country Special

Northland - 8 2 1 5 1 - -
Auckland - 5 - - 3 - - -
Waikato - 23 - 1 8 - - -
Bay of Plenty - 5 2 - 3 17 - -
Gisborne - - 1 - - 3 - -
Hawkes Bay - - - - 2 2 - -
Taranaki - 13 - - 6 - - 1
Manawatu/Wanganui - 6 4 - 12 - - -
Wellington - 1 1 - 5 - - 1
Nelson / Marlborough 1 1 2 2 4 2 - -
West Coast - 1 1 - 2 - - -
Canterbury 9 5 6 - 16 3 - 4
Otago 1 3 9 - 8 - - 1
Southland - 9 12 - 9 - - 2

TOTAL 11 80 40 4 83 28 - 9

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

Northland 17 475,000 14 542,500 17 600,000
Auckland 9 515,000 12 470,000 8 735,000
Waikato 44 1,157,500 33 1,280,000 32 1,165,000
Bay of Plenty 11 1,046,250 28 775,000 27 668,000
Gisborne 1 1,400,000 1 420,000 4 232,500
Hawke’s Bay 8 975,000 6 660,000 4 347,500
Taranaki 13 795,000 6 196,000 20 1,105,000
Manawatu/
Wanganui 28 281,000 18 359,000 22 912,500
Wellington 4 693,000 5 260,000 8 568,000
Nelson/
Marlborough 9 455,000 8 627,500 12 463,000
West Coast - - 7 740,000 4 116,500
Canterbury 45 790,000 41 570,000 43 640,000
Otago 33 650,000 14 842,500 22 462,500
Southland 30 822,500 8 1,081,425 32 657,500

TOTAL 252 $780,000 201 $700,000 255 $680,000

FEBRUARY 1998 FEBRUARY 1999 FEBRUARY 2000
# of Sales Median # of Sales Median # of Sales Median

Northland 6 310,000 6 345,000 15 245,000
Auckland 11 450,000 10 775,000 7 477,500
Waikato 14 462,500 25 900,000 19 665,000
Bay of Plenty 10 457,500 26 535,000 11 292,000
Gisborne 6 307,000 - - 2 617,500
Hawke’s Bay 4 285,000 12 387,500 3 455,000
Taranaki 11 650,000 13 710,000 13 505,000
Manawatu/
Wanganui 12 513,750 11 325,000 21 350,000
Wellington 4 407,500 5 330,000 4 410,000
Nelson/
Marlborough 8 252,245 11 265,000 11 370,000
West Coast - - 6 382,000 4 660,000
Canterbury 3 630,000 12 702,500 15 525,000
Otago 23 335,000 10 500,000 9 610,000
Southland 9 425,000 18 617,500 25 420,000

TOTAL 121 $394,500 165 $550,000 159 $445,000

LIFESTYLE BLOCKS - SALES AND MEDIAN PRICE BY DISTRICT

FEBRUARY 2001 JANUARY 2001 FEBRUARY 2002
# of Sales Median # of Sales Median # of Sales Median

Northland 37 173,334 32 127,000 40 131,250
Auckland 95 280,000 72 296,500 111 342,000
Waikato 41 230,000 40 226,500 64 229,000
Bay of Plenty 26 270,000 31 260,000 45 221,000
Gisborne - 4 79,500 6 171,000
Hawke’s Bay 19 211,500 31 215,000 22 235,000
Taranaki 3 165,000 15 200,000 19 145,000
Manawatu/
Wanganui 32 121,250 25 130,000 32 156,750
Wellington 21 168,000 34 175,250 35 205,000
Nelson/
Marlborough 23 263,000 24 182,500 27 240,000
West Coast 2 122,500 4 140,000 5 115,000
Canterbury 59 214,500 75 212,000 60 229,000
Otago 31 160,000 22 190,750 44 185,000
Southland 19 140,000 15 151,000 18 99,500

TOTAL 408 $210,000 424 $205,000 528 $219,000

FEBRUARY 1998 FEBRUARY 1999 FEBRUARY 2000
# of Sales Median # of Sales Median # of Sales Median

Northland 32 177,500 29 123,000 40 140,000
Auckland 62 320,000 82 320,000 80 320,000
Waikato 47 208,888 60 195,000 42 163,500
Bay of Plenty 34 225,500 38 216,000 46 186,500
Gisborne - - 2 169,000 4 230,000
Hawke’s Bay 7 174,000 17 110,000 15 158,000
Taranaki 5 175,000 16 158,250 8 140,000
Manawatu/
Wanganui 31 105,000 34 120,500 48 135,000
Wellington 16 152,250 22 122,500 44 146,750
Nelson/
Marlborough 11 157,000 34 226,000 29 142,000
West Coast 9 100,000 3 50,000 3 125,000
Canterbury 32 177,500 50 206,500 68 191,500
Otago 21 118,000 17 169,000 19 168,000
Southland 9 165,000 21 110,000 19 127,000

TOTAL 316 $184,500 425 $199,000 465 $175,000

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