A significant drop in dairy farm sales has been felt during the last three months, according to Real Estate Institute of NZ, which report most activity has happened in the Waikato and Southland.
For the three months to May 2014 the median sales price per hectare for dairy farms was $33,543 from 69 properties, The average was the same; $33,543 from 95 properties for the three months to May 2013, and $29,555 from 66 properties for the three months to June 2013.
The median dairy farm size for the three months to June 2014 was 125 hectares.
Included in sales for the month of June were 15 dairy farms at a median sale value of $45,007 per hectare.
The median farm size was 111ha with a range of 34ha in the Waikato region to 521ha in Canterbury.
The median production per hectare across all dairy farms sold in June 2014 was 1130kg/ms.
REINZ rural spokesman Brian Peacocke says as expected for the cross-over period from one season to the next, current activity is reported as being reasonably quiet.
“Farmers and market observers alike are cautiously gauging the potential impact on the forthcoming sales season as a result of clear signals regarding a possible reduction in incomes from the mix of lower product prices, rising interest rates and the very strong New Zealand dollar,” says Brian.
Grazing properties accounted for the largest number of sales with a 43.4 per cent share of all sales during the three months to June.
Finishing properties accounted for 21.1 per cent, dairy properties accounted for 12.7 per cent and horticulture properties accounted for 10.5 per cent of all sales.
These four property types accounted for 87.7 per cent of all sales during the three months.
The median sales price per hectare for grazing farms for the same period was $15,833, from 236 properties.
The lifestyle property market saw a 10.8 per cent fall, or minus 191 sales, in sales volume in the three months to June 2014 when compared to June 2013.