Note: You are viewing this site without it's intended layout and design. This is either because your browser has ignored the stylesheet or you have an outdated web browser that doesn't support W3C Web Standards; In this case we suggest upgrading to a modern, standards–compliant web browser.

Skip to: Page content, search box, accessibility policy.

Bayleys Research


SECOND HALF 2007 NEW ZEALAND RURAL

  • 1 | 2 | 3 | 4 | 5 |

Positive conditions drive farm prices up

Farm prices have continued to rise significantly over the last year as a result of the feel good factor surrounding New Zealand’s primary industry brought about by the dairy led boom in commodity prices, sound prospects for pastoral farming in general and continued rapid expansion of the viticulture sector.

The average sales value of a farm reached a new record level of $1,982,437 in the September quarter, according to the latest sales statistics released by the Real Estate Institute of New Zealand. The latest figures reflect an increase of approximately $661,750 or 50% over the September quarter 2006 figures.

 

The confidence in the farming sector is illustrated not only by the fact that values are up but also in that they are up in the September quarter which is historically the time of the year when values fall back as fewer quality properties tend to be brought to market in the winter months.

The increase in values has been driven primarily by the dairy sector with the annual average sales value having increased from approximately $2.925 million at the end of 2006 to $3.316 at the end of September 2007. Fattening farms have also experienced significant value appreciation with the average sales value to September 2007 recorded as $2.186 million up from $1.729 million at the end of the 2006 calendar year.

Value growth has occurred throughout the country over the last few years with a majority of the country’s main farming areas, such as Taranaki, Waikato and Southland, witnessing increases in average sales prices of between 50% and 60% over the period from 2004 to 2007.

The greatest percentage gain has been experienced in Nelson and Marlborough, albeit off a lower base figure, with the regional market benefiting from the rapid expansion of the viticulture industry.

Unsurprisingly, given the extremely positive economic conditions surrounding the dairy industry, the highest average farm values are being achieved in the Waikato where prices have increased by just over 55% since 2004 reaching a record level of nearly $2.398 million in the year to September. The strong performance of the dairy industry has also resulted in significant value gains in Southland where average sales values have reached $1.983 million an increase of 57% since 2004.

  • 1 | 2 | 3 | 4 | 5 |