REINZ Reveals Farming Fortunes In Fluctuating Markets

The Real Estate Institute of New Zealand (REINZ) has just unveiled its latest report on farm sales, a significant resource that provides valuable insights into the agricultural real estate market for the quarter ending March 2024. This data is a comprehensive overview of the notable trends and shifts within New Zealand's farming landscape.

REINZ's data shows a clear shift in the market dynamics. For the three months ended March 2024, there were 33 fewer farm sales (-13.3%) compared to the same period in 2023. This decline is part of a trend, with 215 farm sales recorded for the quarter, a decrease of 5.7% and 13.3% compared to February 2024 and March 2023, respectively.

The decline in farm sales is not limited to a single sector. In the year leading up to March 2024, 957 farms were sold, marking a decrease of 387 sales compared to the previous year. This decline is spread across various farming sectors, with Dairy farms experiencing a 37.3% reduction, Dairy Support farms down by 10.9%, Grazing farms decreasing by 38.3%, Finishing farms by 28.3%, and Arable farms down by 2.2%.

REINZ rural spokesperson Shane O’Brien said the sales data showed an expected trend as farmers cope with a dry summer, lower farm incomes and higher farm costs and interest rates. The better than expected farm gate milk price and some positive Global Dairy trade results hasn’t managed to increase sales activity in the dairy sector as farmers take a cautious approach to farm investment at this time.

The median price per hectare for all farms sold in the three months to March 2024 was $25,130, showcasing a 15.4% decline compared to the same period in 2023 and a 12.6% decrease compared to February 2024. The REINZ All Farm Price Index, which adjusts for differences in farm size, location, and farming type, decreased by 0.2% compared to February 2024 and 8.8% compared to March 2023.

Regionally, the market shows a diverse picture. While three areas experienced an increase in farm sales for the quarter ended March 2024 compared to the same period in 2023, with Gisborne/Hawkes Bay and Wellington showing some growth, Waikato and Otago recorded significant decreases. Seven regions witnessed increased sales compared to February 2024, with Wellington and Southland demonstrating the most notable upturns. This regional variation highlights the dynamic nature of the agricultural real estate market in New Zealand.

Breaking down the sales distribution, Finishing farms accounted for 25% of all sales, followed by Grazing farms (24%), Dairy farms (22%), and Horticulture farms (7%), collectively representing 78% of all sales during the quarter.

In terms of individual sectors:

Dairy Farms: The median sales price per hectare for dairy farms in March 2024 was $34,730, a 12.3% decrease over the past year. The price per kilo of milk solids declined by 15.5% compared to February 2024.

Finishing Farms: Median sale prices per hectare for finishing farms dropped to $29,605, reflecting a 17.8% decrease over the past 12 months.

Grazing Farms: Median sales prices per hectare for grazing farms increased by 7.1% over the past year, reaching $13,270 for March 2024.

Horticulture Farms: The median sales price per hectare for horticulture farms decreased by 43.2% over the past year, reaching $208,690 for March 2024.

The REINZ Dairy Farm Price Index decreased by 5.1% in the three months to March 2024 compared to February 2024 and 5.9% compared to March 2023.

Overall, the data released by REINZ provides valuable insights into the trends shaping the New Zealand agricultural real estate market, offering stakeholders a comprehensive understanding of the current landscape and prospects.

For more detailed information and insights, please refer to the full report available on the REINZ website.

About REINZ:

The Real Estate Institute of New Zealand (REINZ) is a leading provider of real estate data and insights. It is dedicated to delivering accurate and timely information to support informed decision-making within the industry. With a commitment to transparency and excellence, REINZ plays a vital role in shaping the future of the New Zealand real estate market.

For media inquiries, please contact:

Laura Wilmot, Head of Communications and Engagement communications@reinz.co.nz

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