Seasonal Easing In Rural Property Market

24 MAY, 2002

Rural property statistics for April 2002, released today by the Real Estate Institute of New Zealand, indicate that rural property activity is beginning to slow, with the Institute expecting sales to be relatively subdued from now until Spring.

The national sales volume for April was 253, compared to the March sales volume of 355 and the April 2001 volume of 315.

The national median sale price for April was $720,000 compared to March at $815,000, and the April 2001 median of $765,000.

Rural spokesperson for the Institute, Mr Murray Cleland said today that the latest figures were in line with the expectations of most rural commentators.

He said, “After steady growth in the rural economy throughout 2001, the Institute anticipated a slight easing in sales and values in the rural property during 2002 as the market stabilised. It is this trend that is evidenced by the April statistics, in tandem with the seasonal slowdown in sales traditionally experienced throughout Winter.”

“This seasonal effect also tends to have an impact on the national median sale price, as higher value properties, such as dairy farms, are not put on the market during Winter. With far fewer million-dollar-plus transactions being recorded, the median price does tend to ease.”

The national median price for April in the lifestyle block market firmed on year-to-year and month-to-month comparison, while the national sales volume eased from last month and improved on April last year. There were 658 transactions at a median sales price of $230,000 during April, compared to 711 sales in March at $227,500 and 514 in April 2001 at $212,000.

The national median sale price for all farms has eased by 5.89 per cent from April 2001. The individual sectors that eased were arable property, down by 53.80 per cent; forestry property, falling by 50 per cent; grazing property, easing by 14.7 per cent and dairy property, decreasing by 13.30 per cent.

The sectors that experienced an improvement in median price from April 2001 were finishing property, up by 25.36 per cent; horticultural property, increasing by 8.26 per cent and special property, rising by 78.84 per cent.

The demand for dairy properties eased on both year-to-year and month-to-month comparison, with 48 properties changing hands during April, compared to 73 in March and 85 in April 2001.

The April 2002 median sale price for dairy properties of $1,300,500 was down on both the $1,500,000 recorded in April 2001, and the $1,700,000 recorded in March 2002.

The national arable property median sale price was down on both month-to-month and year-to-year comparison, from $1,665,000 in April 2001 and $865,000 in March to $769,350 in the latest period, while sales stayed stable at eight transactions for March 2002, April 2001 and 2002.

Horticultural property sales eased on year-to-year and month-to-month comparison, with 22 sales in April compared to 49 sales in March 2002 and 30 sales in April 2001. The median price rose from both last year and last month, from $475,000 in both April 2001and March 2002, to $514,250 in the latest period.

Finishing property sales eased on both year-to-year and month-to-month comparison, with 42 sales in April 2002 and 76 in March 2002,compared to 69 sales in April 2001. The median price also eased from last month but firmed from last year with $680,000 in April 2001 and $865,000 in March 2002, compared to $852,500 April 2002.

One hundred and twenty three grazing properties sold in April, down from the 135 sales in March but up on the 112 sales recorded in April 2001. The median sale price was down from last year and last month, easing to $412,000 in April 2002 from the $480,000 recorded in April 2001 and the $597,500 recorded in March 2002.

-ENDS-

Regional highlights:

Northland
Thirty-one farm sales were recorded in Northland in April, eleven more than March and twelve more than the nineteen sales recorded in April 2001. Fourteen grazing, two finishing, five horticultural, one forestry, one special and ten dairy properties made up the total. The median farm price was $500,000, compared with $342,500 in March and $700,000 in April 2001.

A total of 50 lifestyle block sales were recorded for April, compared to 55 in March and 42 sold in April 2001. The median lifestyle block price was $125,000, down on both March’s $140,000 and the $205,000 recorded in April 2001.

Auckland
Nineteen farms sold in the Auckland region in April, six more than March 2001 and equivalent to sales in April 2001. Sales comprised one arable, two dairy, two finishing, two horticultural, one special and eleven grazing properties. The median farm price was $475,000, consistent with March and compared $880,000 in April 2001.

Sales of lifestyle blocks rose on both a month-to-month and year-to-year comparison with 152 sales recorded, compared with 151 in March and 117 in April 2001. The median lifestyle block price was $327,500, compared with $340,000 in March and $315,000 in April 2001.

Waikato
The 43 farms sold in the Waikato were six less than March and 21 less than the sales recorded for April 2001. The sales comprised twenty grazing, 18 dairy, two arable, and three finishing properties. The median farm price was $1,200,000, compared with $1,320,000 in March and $1,000,000 in April 2001.

Seventy-six lifestyle blocks sold during April, compared to 66 in April 2001, and 57 in March 2001. The median lifestyle block price was $246,250, compared with $236,500 in March and $225,000 in April last year.

Bay of Plenty
Nineteen farms were sold, nineteen less than both the sales in March 2002 and April last year. Ten horticultural, one dairy, two special finishing, and six grazing properties made up the total. The median farm price was $698,000, compared with $735,000 in March and $1,100,000 in April 2001.

Fifty-two lifestyle blocks were sold, six more than March and four less than April 2001. The median lifestyle block price was $265,000 for April, more than both the $247,500 recorded for March and the $212,500 in April 2001.

Gisborne
Four properties changed hands in Gisborne during April, four less than March 2002 and three less than in April of last year. The median farm price was $494,368, compared with $436,250 in March and $900,000 twelve months ago.

Two lifestyle blocks changed hands in the region, one less than March and four less than the same month last year. The median lifestyle block price was $180,000, compared with $35,000 in March and $280,750 for the same month last year.

Hawkes Bay
Ten farm settlements took place during April, five less than in March and one more than in April last year. Six grazing, two finishing, one special and one horticultural property comprised the total. The median farm price was $1,100,000, compared with $690,000 in March and $290,000 in April 2001.

Lifestyle block sales fell to 25 in April from 42 in March and compared to 18 sales in April last year. The median lifestyle block price was $195,000, compared with $208,100 in March 2002 and $163,500 last April.

Taranaki
Nine farms changed hands in Taranaki, compared with sixteen in March and fifteen in April 2001. Five grazing and four dairy properties comprised the total farm sales. The median farm price was $1,050,000, compared with $603,750 in March and $750,000 in April 2001.

Twenty-two lifestyle blocks changed hands in the region, four more than March and eight more than the sales for April 2001. The lifestyle block median price was $282,500, compared with $205,000 last month and $185,050 last April.

Manawatu/Wanganui
Farm sales fell from last month - from 26 for March to 21 in April 2002, and compared to 30 sales in April 2001. Twelve grazing, four dairy, four finishing properties and one horticultural property comprised the total. The median farm price was $735,000, compared with $1,057,500 in March and $516,000 in April 2001.

The 56 Lifestyle block sales in April are consistent with the sales for March 2002 and compared to the 38 sales recorded in April 2001. The median lifestyle block price was $167,500, compared with $161,500 in March and $155,750 in April 2001.

Wellington
Nine properties, consisting of two finishing, three forestry, one special and three grazing properties changed hands in the Wellington region during April, compared to seven farm transactions in April last year and six in March 2002. The median farm price was $280,000, compared with $472,500 in March and $1,275,000 in April 2001.

A total of 42 lifestyle blocks changed hands, sixteen more than the 26 recorded in March 2002 and five more than the 37 for April 2001. The median lifestyle block price fell to $198,500 compared to the March figure of $199,500 but rose on the $165,000 recorded in April 2001.

Nelson/Marlborough
Farm sales fell in the Nelson/Marlborough region with eleven sales for April, eighteen for March, and fourteen sales recorded in April 2001. Ten grazing and one horticultural property made up the farm sales in the region. The median farm price was $380,000, compared with $444,000 in March and $557,500 in April 2001.

Thirty-two lifestyle blocks sold and the median price was $302,500, compared with $265,000 in March when 47 were sold and $172,500 in April last year when 30 blocks changed hands.

West Coast
The five transactions that took place on the West Coast during April was one less than the sales for March and equivalent to the sales in April 2001.

Ten lifestyle blocks sold in the region, five more than in both March 2002 and April 2001.

Canterbury
A total of 28 farms changed hands in April, compared with 41 in March and 26 in April last year. There were four arable, one dairy, fifteen grazing, one horticultural and seven finishing properties sold. The median farm price was $767,500, compared with $616,200 in March and $1,100,000 in April 2001.

Lifestyle block sales fell on a month-to-month basis, with 86 changing hands for April, compared to 120 in March but rose on the 73 sales recorded in April 2001. The median lifestyle block price for the region was $186,000 compared to $201,750 in March and $230,000 in April last year.

Otago
Twelve farms were sold in Otago comprising nine grazing and three finishing properties. This compared with 27 sales in April last year and 36 in March. The median farm price was $282,500, compared with $639,000 in March and $510,000 in April 2001.

Thirty-one lifestyle blocks changed hands in the region, compared to 44 sales for March and 25 sales in April 2001. The median lifestyle block price was $230,000, up on both March’s $217,500 and the $143,000 recorded in April 2001.

Southland
The median farm price in Southland was $821,575 compared with $1,164,700 in March and $764,000 in April 2001.Thirty-two farms changed hands compared to 65 in March and 54 in April last year. There were seventeen finishing, nine grazing, one arable and five dairy properties sold.

Lifestyle block sales fell from 32 for March 2002 to 22 sales for April 2002, equivalent with sales for April 2001. The median lifestyle block price was $122,500, down on March’s $126,750 and up on the $118,500 recorded in April 2001.

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