Rural Property Market Eases

NEWS RELEASE 27 FEBRUARY, 2003

Rural Property Market Eases

Activity slowed and median prices eased in the rural property market during the first month of 2003. Both the national sales volume and national median price for January fell on the figures recorded for both December 2002 and January 2002, 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 anticipated, given that January is typically less active for the rural property market.

Mr Cleland said, “The rural property market is very seasonal, and the Christmas/New Year period is traditionally less active. In addition, 2002 was a particularly successful year and it is inevitable that the recent high levels of activity and value of the transactions would begin to level.

“The outlook for 2003 is for a more challenging environment in the rural sector, given the impact of exchange rates, livestock prices and extremely dry weather in some regions, should be anticipated. But I don’t think we can interpret the January figures as a concrete indication of future of the rural property market in 2003. One month’s figures are far from being an established trend. Feedback from our members in fact suggest that interest in rural property is still extremely high, so at this stage the statistics appear to indicate merely a seasonal easing.”

According to statistics released today by the Institute, the national sales volume for January was 179, compared to the December sales volume of 256 and the January 2002 volume of 201.

The national median sale price for January was $522,500 compared to December at $755,000, and the January 2002 median of $700,000.

The lifestyle block market, however, has remained buoyant.

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 improved from both last month and last year, with 512 transactions at a median sales price of $255,000, compared to 572 sales in December at $241,000 and 424 in January 2002 at $205,000.

The demand for dairy properties eased on both month-to-month and year-to-year comparison, with 31 properties changing hands during January, compared to 51 in December 2002 and 41 in January 2002.

However values continued to hold up, continuing their incremental growth since mid 2002. The January 2003 median sale price for dairy properties of $1,700,000 was up on both the $1,600,000 recorded in January 2002, and the $1, 610,000 recorded in December 2002.

The national arable property median sale price was up on both a year to year and month to month basis, from $1,330,000 in January 2002 and $651 ,000 in December to $1,650,000 in the latest period, while sales fell to five from the seven recorded in January 2002, and the nine sales recorded in December 2002.

Horticultural property sales eased on both year-to-year and month-to-month comparison, with 13 sales in January compared to 34 sales in December 2002 and 25 sales in January 2002. The median price rose from last month and fell from last year, from $580,000 in January 2002 to $610,000 in the latest period, and compared to $917,500 in December 2002.

Finishing property sales eased on both year-to-year and month-to-month comparison, with 35 sales in January 2003 and 38 in December 2002,compared to 41 sales in January 2002. The median price fell from last month and last year with $850,000 in January 2002 and $1,127,500 in December 2002, compared to $700,000 January 2003.

Ninety-one grazing properties sold in January, down on the 116 sales in December but up from the 76 sales recorded in January 2002. The median sale price was down from last year and last month, from $425,000 in January 2002 and $495,000 in December 2002, to the $420,000 recorded in January 2003.

-ENDS-

Distributed on behalf of the Real Estate Institute of New Zealand by Sorensen Group
For further information contact:
Murray Cleland, REINZ Councillor Phone: (021) 950 445
Klaus Sorensen Phone: (029) 232 2576

Regional highlights:

Northland
Both sales volume and median price eased for January in Northland, with a total of 11 farms selling at a median price of $639,000 compared with 18 farms and a median price of $651,000 in December 2002. Sales reached a total value of $9.18 million, down from $13.69 million in December. Sales comprised three dairy farms, four grazing properties, two horticultural and one each forestry and fattening properties. Dairy values drove the total value of sales and median price – the three dairy properties sold having a total value of $5.07 million and an individual median price of $1.3 million

Values of lifestyle blocks rose, while the number of sales eased in January with 28 lifestyle blocks sold at a median price of $167,500, compared to 52 in December with a median of $147,500 and 32 in January 2002 at $127,000.

Auckland
Farm sales in January fell from both last month and last year with eight sales, compared to 17 in December 2002 and twelve in January 2002. The median price of $603,750 eased from last months $1,100,000, but had improved on last January’s median price of $470,000. The eight sales were made up of grazing properties.

The total value of sales in the region was $11.53 million, and predominantly made up of properties in Franklin, although the only property to achieve a sales price in seven figures was in the Thames Coromandel district.

Sales of lifestyle blocks in the Auckland region eased slightly from the record highs of December with 121 sales at a median price of $348,000. This compared with 139 sales in December at a median of $375,000, and 72 sales at a median price of $296,500 in January 2002.

The total value of lifestyle block sales reached $53.39 million, with seven of the properties reaching sale values of over $1 million.

Waikato
Farm sales eased while the median price continued to improve in the Waikato. In January 24 farms changed hands at a median price of $1,144,401, compared to December when 38 farms sold at a median $1,041,500 price and January 2002 when 33 farms sold at a median price of $1,280,000. Eleven grazing, twelve dairy and one fattening property comprised the sales.

With dairy and finishing properties attaining median prices of $1.78 and $1.21 million respectively, the total value of sales was an extremely healthy $31.13 million.

Thirteen farms reached prices in excess of one million dollars each.

After an active end to 2002, lifestyle block sales and values eased slightly with 38 sales at median price of $222,500, compared to 58 sales at a median price of $232,000 in December and $226,500 in January 2002 when 40 sold.

Bay of Plenty
Sales and median price eased sharply in the Bay of Plenty, with 19 selling for a median price of $350,000. This compared to December with 29 selling for a median price of $795,000. In January 2002, the 28 farms sold had a median price of $775,000. Five horticultural, nine grazing and five dairy properties comprised the sales.

Lifestyle blocks sales fell to 34 from the 48 in December, but improved on the 31 sold in January 2002. The median price of $301,500 was improved on both last year and last month, when the medians were $260,000 and $297,500 respectively.

Gisborne
Farm sales fell to three from the five sales in December, and the median price also decreased to $295,000 from the $338,000 recorded last month. The three sales comprised one grazing and two horticultural properties.

Six lifestyle blocks sold during January, at a median price of $258,775, compared to two lifestyle blocks sold in December for a median price of $125,000.

Hawke’s Bay
Sales eased on a month to month basis in the Hawke’s Bay, falling from the 17 sales in December, which notably was the highest month for sales in the last two quarters of 2002, to ten sales in January. The median price of $525,000 was slightly down on December’s median price of $530,000. The ten sales were made up by two horticultural, seven grazing and one finishing property.

Twenty lifestyle blocks also sold during the month at a median $282,500.

Taranaki
Farm sales eased in the Taranaki region in December with five selling for a median price of $510,000, compared to twelve sales in December for a median price of $1,047,500. Sales were made up by two dairy and three grazing properties.

Sales fell but values rose from the previous month for lifestyle blocks. Sales eased to ten from 19 but the median price of $269,000 was well up on the $210,000 recorded last month.

Manawatu / Wanganui
Two farms sold in the Manawatu / Wanganui region during January at a median price of $1,570,000. Sales comprised one grazing and one special property.

Sales of lifestyle blocks remained steady at 32 but the median price eased slightly to $179,000.

Wellington
Two finishing and one each grazing and forestry properties sold in the Wellington region during the month of January for a total value of $1.62 million and median price of $500,000.

The sales volume and median price of lifestyle blocks eased on a month to month basis. Sales fell to 26 from 38 in December while the median price of $172,500 was well down on last month’s $220,000.

Nelson / Marlborough
Farm sales fell by five in Nelson / Marlborough during January, the nine farms sold consisting of seven grazing and one each dairy and horticultural properties.

Lifestyle blocks sales eased to 33 from 41 in December, but was well improved on the 24 sales in January 2002. In a similar pattern, the median price of $222,000 compared to $250,000 and $182,500 for December 2002 and January 2002 respectively.

West Coast
Seven farms sold on the West Coast during December – two dairy and one each fattening and forestry, three grazing – for a median price of $235,000.

Five lifestyle blocks sold in the West Coast this month at a median price of $80,000.

Canterbury
Farms sales remained steady in Canterbury during January with 34 reaching a median price of $527,500. In December 2002, 35 sold for a median $650,000. Both sales volume and median sales price eased from January 2002, when 41 properties changed hands at a median price of $570,000. Grazing properties predominated with 21 selling, the remainder were made up by five each arable and fattening, with three dairy farms making up the remainder. The total value of farm sales in the region was $39.68 million.

Lifestyle block sales rose strongly to 105 at a median price of $200,000, well up from the 65 which sold in December 2002 for a median $225,000.

Otago
Eighteen farms sold in Otago during the month of January, well down on the record breaking 28 sales in December. The median price of $ $441,000 was also significantly down on the December median of $835,000. This month’s sales were made up by seven fattening, nine grazing, one dairy and one horticultural property. The total value of farm sales in the region was $12.33 million.

Sales volume and median price of lifestyle blocks rose strongly to 41, with a median of $252,000, from the 28 sales at a median of $177,500 in December. The total value of lifestyle block sales was $13.64 million.

Southland
A very successful month for sales in Southland, with the volume rising by ten to achieve 25 sales in January 2002. The median price of $550,000 had eased from last month and last year. The sales comprised seventeen fattening, two dairy and six grazing properties. The total value of farm sales in the region was $19.04 million.

Thirteen lifestyle blocks sold in January at a median price $116,000.

NUMBER OF SALES AND MEDIAN SALES PRICE
BY DISTRICT – JANUARY 2003

All Farms
All Lifestyle
No. of Sales Median No. of Sales Median
Northland 11 639,000 28 167,500
Auckland 8 603,750 121 348,000
Waikato 24 1,144,401 38 222,500
Bay of Plenty 19 350,000 34 301,500
Gisborne 3 295,000 6 258,775
Hawkes Bay 10 525,000 20 282,500
Taranaki 5 510,000 10 269,000
Manawatu/
Wanganui 2 1,570,000 32 179,000
Wellington 4 500,000 26 172,500
Nelson/
Marlborough 9 303,000 33 222,000
West Coast 7 235,000 5 80,000
Canterbury 34 527,500 105 200,000
Otago 18 441,000 41 252,000
Southland 25 550,000 13 116,000

TOTAL 179 $522,500 512 $255,000

NUMBER OF SALES BY FARM TYPE – JANUARY 2003

Arable Dairy Fattening Forestry Grazing Horticultural Sth Island High Country Special

Northland - 3 1 1 4 2 - -
Auckland - - - 8 - - -
Waikato - 12 1 - 11 - - -
Bay of Plenty - 5 - - 9 5 - -
Gisborne - - - - 1 2 - -
Hawkes Bay - - 1 - 7 2 - -
Taranaki - 2 - - 3 - - -
Manawatu/Wanganui - - - - 1 - - 1
Wellington - - 2 1 1 - - -
Nelson / Marlborough - 1 - - 7 1 - -
West Coast - 2 1 1 3 - - -
Canterbury 5 3 5 - 21 - - -
Otago - 1 7 - 9 1 - -
Southland - 2 17 - 6 - - -

TOTAL 5 31 35 3 91 13 - 1

FARMS - SALES AND MEDIAN PRICE BY DISTRICT
JANUARY 2002 DECEMBER 2002 JANUARY 2003
#. of Sales Median #. of Sales Median #. of Sales Median

Northland 14 542,500 18 651,000 11 639,000
Auckland 12 470,000 17 1,100,000 8 603,750
Waikato 33 1,280,000 38 1,041,500 24 1,144,401
Bay of Plenty 28 775,000 29 795,000 19 350,000
Gisborne 1 420,000 5 338,000 3 295,000
Hawke’s Bay 6 660,000 17 530,000 10 525,000
Taranaki 6 196,000 12 1,047,500 5 510,000
Manawatu/
Wanganui 18 359,000 19 670,000 2 1,570,000
Wellington 5 260,000 4 262,500 4 500,000
Nelson/
Marlborough 8 627,500 14 382,750 9 303,000
West Coast 7 740,000 5 1,550,000 7 235,000
Canterbury 41 570,000 35 650,000 34 527,500
Otago 14 842,500 28 835,000 18 441,000
Southland 8 1,081,425 15 786,000 25 550,000

TOTAL 201 $700,000 256 $755,000 179 $522,500

JANUARY 1999 JANUARY 2000 JANUARY 2001
# of Sales Median #. of Sales #. of Sales #. of Sales Median

Northland 3 190,000 14 559,000 18 572,500
Auckland 7 405,000 6 410,000 15 610,000
Waikato 12 1,205,000 21 757,500 45 900,000
Bay of Plenty 11 620,000 3 820,000 11 780,000
Gisborne 1 136,000 3 300,000 2 715,201
Hawke’s Bay 10 377,500 8 407,500 16 447,500
Taranaki 15 820,000 14 675,000 10 660,000
Manawatu/
Wanganui 15 290,000 12 380,000 12 363,750
Wellington 2 540,000 3 562,000 5 290,000
Nelson/
Marlborough 4 683,000 8 350,000 17 385,000
West Coast 2 77,500 - - 6 352,000
Canterbury 17 535,000 13 550,000 20 1,139,500
Otago 12 531,000 8 460,000 33 403,000
Southland 6 748,093 15 300,000 25 870,000

TOTAL 117 $548,000 128 $526,500 235 $702,500

LIFESTYLE BLOCKS - SALES AND MEDIAN PRICE BY DISTRICT

JANUARY 2002 DECEMBER 2002 JANUARY 2003
# of Sales Median # of Sales Median # of Sales Median

Northland 32 127,000 52 147,500 28 167,500
Auckland 72 296,500 139 375,000 121 348,000
Waikato 40 226,500 58 232,000 38 222,500
Bay of Plenty 31 260,000 48 297,500 34 301,500
Gisborne 4 79,500 2 125,000 6 258,775
Hawke’s Bay 31 215,000 23 205,000 20 282,500
Taranaki 15 200,000 19 210,000 10 269,000
Manawatu/
Wanganui 25 130,000 32 195,000 32 179,000
Wellington 34 175,250 38 220,000 26 172,500
Nelson/
Marlborough 24 182,500 41 250,000 33 222,000
West Coast 4 140,000 10 88,250 5 80,000
Canterbury 75 212,000 65 225,000 105 200,000
Otago 22 190,750 28 177,500 41 252,000
Southland 15 151,000 17 122,500 13 116,000

TOTAL 424 $205,000 572 $241,000 512 $255,000

JANUARY 1999 JANUARY 2000 JANUARY 2001
# of Sales Median # of Sales Median # of Sales Median

Northland 19 125,000 38 107,500 37 173,334
Auckland 68 272,500 52 351,000 95 280,000
Waikato 34 221,250 66 218,250 41 230,000
Bay of Plenty 24 208,500 26 247,500 26 270,000
Gisborne 1 365,000 5 132,000 -
Hawke’s Bay 12 143,750 16 187,500 19 211,500
Taranaki 8 131,000 10 156,000 3 165,000
Manawatu/
Wanganui 24 135,000 44 106,500 32 121,250
Wellington 36 162,500 26 185,000 21 168,000
Nelson/
Marlborough 19 220,000 19 170,000 23 263,000
West Coast 8 71,500 7 125,000 2 122,500
Canterbury 48 164,000 54 175,000 59 214,500
Otago 25 104,000 21 175,000 31 160,000
Southland 6 103,000 24 147,500 19 140,000

TOTAL 332 $185,000 408 $175,000 408 $210,000

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