Winter Impacts Sales, But Values Remain Strong

NEWS RELEASE AUGUST 21, 2003

Winter Impacts Sales, But Rural Property Values Remain Strong - REINZ

Rural property values for July have increased markedly on both a year-to-year and month-to-month basis, while the number of sales increased from last July but fell from last month, according to the latest statistics released by the Real Estate Institute of New Zealand.

The national median farm sale price for July was $680,000 compared to June at $620,000, and the July 2002 median of $587,500. The national sales volume for farms in July was 206, compared to the June sales volume of 251 and the July 2002 volume of 182.

On month-to-month comparison, of the fourteen districts surveyed, farm sales decreased in ten areas, and seven regions experienced a drop in sales volume on a year-to-year basis.

According to REINZ rural spokesperson, Mr. Murray Cleland, the latest results are extremely positive, given the recent onset of the traditional winter slowdown.

He said, “The Institute anticipated a decrease in sales from last month as winter took hold, that’s part of the normal pattern, but the increase in the median of $60,000 from July 2002 is very encouraging, as it demonstrates the continuing confidence buyers have in the rural sector.

“Comparison of the latest figures to July 2002 reveals an even more positive picture. The national median sale price is up by $92,500, sales are up by 24 transactions and the total dollar value of sales has increased by approximately $27 million.”

On month-to-month comparison, the lifestyle block market has eased for the second month –both in activity and in median sales price, but was well improved on July 2002. The 675 sales recorded during July 2003 was a fall of 74 transactions from June’s 749 sales, but a strong increase on the 547 sales recorded in July 2002. The median sales price eased by $7,000 from last month but was up by $33,000 to $248,000 on the $215,000 recorded in July 2002.

“Year-on-year, the lifestyle block market continues to perform well, with an increase in sales volume, median sales price and total dollar turnover. $218.4 million was invested in the sector during July, compared to $140.2 million in July 2002. It’s a strong result and very pleasing for the overall rural and provincial economy,” said Mr. Cleland.

The demand for dairy properties eased on both month-to-month and year-to-year comparison, with 27 properties changing hands during July, compared to 28 in June 2003 and 29 in July 2002.

Dairy property values rose from last month and last year, with the July 2003 median sale price for dairy properties at $1,400,000, up from the $1,375,000 recorded in June 2003 and the $1,000,000 recorded in July 2002.

The horticultural property national median price rose on a year-to-year and month-to-month comparison, with 28 sales at a median of $563,500 in July compared to 31 sales at $538,000 in June 2003 and 22 sales at a median of $560,000 in July 2002.

Finishing property sales eased on both year-to-year and month-to-month comparison, with 25 sales in July 2003 compared to 27 in June 2003 and 34 sales in July 2002. The median price fell from last year and last month with $838,125 recorded in July 2003 and $1,000,000 in June 2003, compared to $912,500, in July 2002.

One hundred and eleven grazing properties sold in July, twenty two less than the 133 sales in June and twenty nine more than the eighty-two sales recorded in July 2002. The median sale price of $605,000 was up from both the $525,000 recorded in June 2003 and the $447,500 in July 2002.

The arable property national median price rose on both a month-to-month basis and year-to-year comparison, with 5 sales at a median of $1,320,000 in July compared to 10 sales at a median of $1,031,000 in June 2003 and 10 sales at a median of $752,000 in July 2002.

-ENDS-

Regional Highlights:

Northland
Northland recorded 13 farm sales for the month of July, a slight fall in comparison to the 16 sales achieved the prior month and a significant gain compared to the seven sales recorded last year. The median price decreased on a monthly basis, levelling to $407,000 against June’s $465,000 median, but strengthened in comparison to the $255,000 median achieved in July 2002. Three dairy, one forestry, eight grazing and one horticultural property were sold in July, a decline against the five dairy, one forestry, eight grazing and two horticultural farms that changed hands last month.
In contrast, sales peaked on both a monthly and yearly basis for lifestyle blocks, totalling 74 sales for the month, with positive growth on the previous month’s 49 sales and the prior year’s 46 sales. Despite the sales increase, the median price of $150,000 decreased against last month’s $185,000 median, but remained well ahead of July 2002’s $143,000 median.
Auckland
The median price for Auckland at $740,000 demonstrated strong growth on both the prior month’s and year’s $530,000 median price. However farm sales for the region fell considerably to 14 against the 22 achieved last year and the 30 sales arisen in June. One dairy, one fattening and 12 grazing farms were sold in July for a total sales value of $12.3 million.

Sales of lifestyle blocks declined to 154, down on last month’s total sales of 196, while demonstrating an improvement in comparison to the prior year’s 114 sales. Meanwhile the median price soared to $380,500, up on June’s median price of $377,500 and the previous year’s $340,000 median.

Waikato
The number of farms sold during the month of July remained consistent with the prior month’s 25 sales and strengthened against the 21 sales achieved in July 2002. However the median price for the region continued to level off to $900,000, down from June’s $1,050,000 and last July’s $1,150,000. Six dairy, two fattening, 15 grazing, one horticultural and one special farm changed hands last month to create a total sales value of $21.5 million.

Sixty-three lifestyle blocks were sold in July, ahead of the 60 sales achieved in July last year, however this presented a downward movement on the 65 sales attained in June. The median price for Waikato at $228,000 kept pace with the prior year’s median at $190,000, but dipped against last month’s $279,000 median.

Bay of Plenty
Farm sales totalled 27 for the July period - a positive movement on both a monthly and yearly basis (June: 26; July 2002: 10). Meanwhile the median price eased to $567,000, a fall compared to both the $595,000 median recorded in July 2002 and June’s $614,750 median price. One dairy, six grazing and 20 horticultural properties were sold in the month of July for a total sales value of $18.3 million.

The median price for lifestyle blocks showed no signs of weakening at $275,000, a steady increase ahead of the $266,000 median sales price in June and the median price of $256,000 achieved in July 2002. Sales for the region at 65 declined on a monthly basis, with 95 sales attained last month, but remained ahead of the 51 sales achieved the prior year.

Gisborne
Farm sales in Gisborne weakened to three for the month, easing from the four recorded in both June and last July. At $515,000 the median price firmed against the $390,500 median achieved in June, but fell significantly from the median sales price of $781,500 last year. Three grazing farms were sold during July in comparison to the one forestry farm, two grazing and one horticultural property that changed hands in June.

The number of lifestyle blocks sold increased from three to seven, on the four sold in both June and July of last year. However the median price for the month at $98,000 was well short of the $167,500 median recorded in June and the $133,000 median price exhibited in July 2002.

Hawkes Bay
Hawkes Bay’s farm sales increased on both a monthly and yearly basis to 14, a slight advance on the 12 sales achieved in June and the 11 sales recorded the prior year. At $511,440 the median price strengthened against the previous year’s $535,000 median, but eased from the $632,250 median price achieved in June 2003. One arable farm, three fattening, five grazing and five horticultural farms were sold during July to create a total sales value of $10.5 million.

A total of 23 lifestyle blocks were sold during July at a median price of $221,000, an increase compared to the 18 sold last year for a median price of $199,000, however this presented a significant downward movement against the 28 sales recorded in June at a median price of $265,000.

Taranaki
Taranaki’s sales dipped one to six sales for the month, down on the seven achieved in both June and July last year. The median price also decreased from the $862,000 recorded in July 2002 to a median of $442,500 during July, however remained ahead of the median price of $360,000 recorded last month. One dairy and five grazing properties sold in July to create a total sales value of $3.3 million.

Twenty lifestyle blocks sold in July to present an increase on the ten achieved in June, but a decline on the 23 sales achieved last year. On both a monthly and yearly basis the median price fell to $157,500, a significant decrease on both last month’s $188,000 median and last year’s $210,000 median.

Manawatu / Wanganui
Manawatu / Wanganui’s median price during July continued its upward growth pattern to $905,000, a considerable advance compared to the $670,000 median achieved in June and the median price of $483,250 recorded last year. Six dairy, four fattening, one forestry and nine grazing farms sold in July, in contrast to the two dairy, eight fattening, 19 grazing and one special property sold last month.

The 50 sales achieved in July increased eight on the 42 sold last year, but presented a significant decline on the 78 sales made in June. The median price for the month also fell considerably from a median $200,000 in June to $157,500 in July, however this was a slight increase on the $156,500 median recorded the prior year.

Wellington
Two farm sales were recorded in Wellington during July, five less than July last year and six fewer than June. However the median price for the month at $503,000 was well ahead of the $353,333 median achieved last month and the median price of $457,500 achieved the prior year. Two grazing farms were sold during July compared to the one dairy, one fattening and six grazing properties that changed hands the prior month.

A total of 28 lifestyle blocks were sold in July, four more than the 24 achieved in both June and last July. The median farm price was $245,000 compared to June’s $206,500 median and the previous year’s $237,500 median price.

Nelson / Marlborough
Nine properties changed hands in July, down on the 12 sales recorded the prior month and a fall of two on the previous year’s 11 sales. The median farm price was $900,000, a significant decline against the $1,075,000 median exhibited in June, but strengthened when compared to $685,000 median price achieved last year. One dairy farm, six grazing, one horticultural and one special farm changed hands this month to create a total sales value of $8.6 million.

Thirty-two lifestyle properties sold in July, an advance on July 2002’s 27 sales while easing against the 45 properties sold in June. The July median price of $267,500 kept pace with the prior year’s median of $236,000, however fell short of reaching the median of $365,000 attained last month.

West Coast
Three farms were sold on the West Coast in July, compared with the one sold in July 2002 and the four sales recorded the prior month. The median price was $60,000, a drop on both a monthly and yearly basis in comparison to the median of $873,000 recorded in June and the $235,000 median demonstrated the previous year. Three forestry properties changed hands this month compared to the four grazing farms that sold in June.

The median sales price for lifestyle blocks was $80,000, down on the $93,000 median achieved last year, but ahead of the median price of $70,000 achieved in June. A total of seven lifestyle blocks were sold during the month, equal to June and one sale ahead of July 2002’s six sales.

Canterbury

The 36 farms sold in July were eight more than July last year and one more than the sales recorded in June last month. The median price for the region of $642,500 represented a drop in comparison to the $850,000 median recorded in the prior month, while a slight increase on the $600,000 median exhibited the previous year. Four arable farms, four dairy, six fattening, one forestry, 20 grazing and one special farm changed hands during July for a total sales value of $31.9 million, a decrease when compared to the nine arable, four dairy, three fattening, one forestry, 13 grazing, one South Island high country and four special farms sold last month for $46.8 million.

A total of 100 lifestyle properties were sold in July, an increase of two against June’s 98 sales and 11 ahead of July 2002’s result. At $204,750 the median price fell short of the prior year’s $220,000 median, but strengthened in comparison to the $186,500 median price achieved last month.

Otago
The median price for Otago farms during the month of July was $760,000, a significant increase on the previous month’s $556,500 and the $372,500 median recorded last year. A total of 14 sales were recorded this July, compared to 20 for June and 18 sales for July 2002. Two dairy, three fattening, one forestry and eight grazing properties were sold during July for $17.1 million.

July showed marked sales of thirty-four lifestyle blocks, three more than that sold last month and an advance of five on the prior year’s figures. At $228,500 the median price firmed against the $160,000 median achieved the previous year, but eased against June’s median price of $250,000.

Southland
Twenty farms were sold in July, down two on June’s sales, but up seven on the prior year’s 13 farms sold. The median price for Southland was $894,062, a considerable increase on last month’s $580,200, however declined in relation to the July 2002 median of $900,000. Two dairy, six fattening and 12 grazing farms changed hands during July to create a total sales value of $24.1 million, in contrast to the $19.2 million sales recorded the prior month.

The median lifestyle price of $190,250 exhibited positive growth on both the monthly and yearly comparison, with a median price of $140,000 recorded for June and a median of $132,000 achieved the prior year. Eighteen properties sold during July as compared to 19 sales in June and 14 sales in July 2002.

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

All Farms
All Lifestyle
No. of Sales Median No. of Sales Median
Northland 13 407,000 74 150,000
Auckland 14 740,000 154 380,500
Waikato 25 900,000 63 228,000
Bay of Plenty 27 567,000 65 275,000
Gisborne 3 515,000 7 98,000
Hawkes Bay 14 511,440 23 221,000
Taranaki 6 442,500 20 157,500
Manawatu/
Wanganui 20 905,000 50 157,500
Wellington 2 503,000 28 245,000
Nelson/
Marlborough 9 900,000 32 267,500
West Coast 3 60,000 7 80,000
Canterbury 36 642,500 100 204,750
Otago 14 760,000 34 228,500
Southland 20 894,062 18 190,250

TOTAL 206 680,000 675 248,000

NUMBER OF SALES BY FARM TYPE – July 2003

Arable Dairy Fattening Forestry Grazing Horticultural Sth Island High Country Special

Northland - 3 - 1 8 1 - -
Auckland - 1 1 - 12 - - -
Waikato - 6 2 - 15 1 - 1
Bay of Plenty - 1 - - 6 20 - -
Gisborne - - - - 3 - - -
Hawkes Bay 1 - 3 - 5 5 - -
Taranaki - 1 - - 5 - - -
Manawatu/Wanganui - 6 4 1 9 - - -
Wellington - - - - 2 - - -
Nelson / Marlborough - 1 - - 6 1 - 1
West Coast - - - 3 - - - -
Canterbury 4 4 6 1 20 - - 1
Otago - 2 3 1 8 - - -
Southland - 2 6 - 12 - - -

TOTAL 5 27 25 7 111 28 - 3

FARMS - SALES AND MEDIAN PRICE BY DISTRICT
JULY 2002 JUNE 2003 JULY 2003
#. of Sales Median #. of Sales Median #. of Sales Median
Northland 7 255,000 16 465,000 13 407,000
Auckland 22 530,000 30 530,000 14 740,000
Waikato 21 1,150,000 25 1,050,000 25 900,000
Bay of Plenty 10 595,000 26 614,750 27 567,000
Gisborne 4 781,500 4 390,500 3 515,000
Hawke’s Bay 11 535,000 12 632,250 14 511,440
Taranaki 7 862,000 7 360,000 6 442,500
Manawatu/
Wanganui 22 483,250 30 670,000 20 905,000
Wellington 7 457,500 8 353,333 2 503,000
Nelson/
Marlborough 11 685,000 12 1,075,000 9 900,000
West Coast 1 235,000 4 873,000 3 60,000
Canterbury 28 600,000 35 850,000 36 642,500
Otago 18 372,500 20 556,500 14 760,000
Southland 13 900,000 22 580,200 20 894,062

TOTAL 182 587,500 251 $620,000 206 $680,000

JULY 1999 JULY 2000 JULY 2001
# of Sales Median #. of Sales Median #. of Sales Median
Northland 7 367,000 10 510,000 14 297,500
Auckland 14 407,500 11 362,000 15 535,000
Waikato 14 540,000 8 661,000 20 664,000
Bay of Plenty 15 430,000 15 390,000 14 392,500
Gisborne 8 785,000 5 700,000 8 536,000
Hawke’s Bay 12 360,000 12 328,500 14 491,000
Taranaki 3 530,000 6 333,750 34 533,000
Manawatu/
Wanganui 13 280,000 12 687,500 29 307,000
Wellington 5 130,200 1 353,000 3 510,000
Nelson/
Marlborough 11 550,000 13 365,000 6 387,500
West Coast 1 22,000 4 83,750 3 1,000,000
Canterbury 18 345,000 12 496,000 29 575,000
Otago 3 240,000 17 380,000 12 455,000
Southland 19 330,000 23 480,000 42 871,431

TOTAL 143 $400,000 149 $430,000 243 $510,000

LIFESTYLE BLOCKS - SALES AND MEDIAN PRICE BY DISTRICT

JULY 2002 JUNE 2003 JULY 2003
# of Sales Median # of Sales Median # of Sales Median

Northland 46 143,000 49 185,000 74 150,000
Auckland 114 340,000 196 377,500 154 380,500
Waikato 60 190,000 65 279,000 63 228,000
Bay of Plenty 51 256,000 95 266,000 65 275,000
Gisborne 4 133,000 4 167,500 7 98,000
Hawke’s Bay 18 199,000 28 265,000 23 221,000
Taranaki 23 210,000 10 188,000 20 157,500
Manawatu/
Wanganui 42 156,500 78 200,000 50 157,500
Wellington 24 237,500 24 206,500 28 245,000
Nelson/
Marlborough 27 236,000 45 365,000 32 267,500
West Coast 6 93,000 7 70,000 7 80,000
Canterbury 89 220,000 98 186,500 100 204,750
Otago 29 160,000 31 250,000 34 228,500
Southland 14 132,000 19 140,000 18 190,250
TOTAL 547 215,000 749 $255,000 675 248,000

JULY 1999 JULY 2000 JULY 2001
# of Sales Median # of Sales Median # of Sales Median

Northland 40 123,500 40 177,750 26 129,000
Auckland 78 295,000 83 295,000 106 347,500
Waikato 49 179,000 45 210,000 54 202,500
Bay of Plenty 32 174,000 25 195,000 47 287,500
Gisborne 2 147,600 5 78,000 8 159,000
Hawke’s Bay 20 239,000 22 224,000 33 165,000
Taranaki 7 120,000 7 162,000 16 162,500
Manawatu/
Wanganui 32 124,000 47 120,000 50 132,000
Wellington 30 175,625 28 188,000 18 133,000
Nelson/
Marlborough 36 202,000 25 231,445 29 225,000
West Coast 3 110,000 9 122,000 8 136,625
Canterbury 68 148,400 55 170,000 61 237,500
Otago 20 171,000 24 251,500 27 158,000
Southland 13 123,000 15 123,000 20 117,250

TOTAL 430 $175,000 430 $196,850 503 $210,000

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