16 Nov 2010

Farm sales down 28%

2:09 pm on 16 November 2010

Farm sales throughout New Zealand have fallen by just over a quarter, but the median sale price has risen in the last three months compared to a year ago.

The latest Real Estate Institute of New Zealand Rural Market Report shows 147 farms were sold, a 28% drop on the number sold in the same three months last year.

The national median farm sale price increased to $950,000, compared with $875,000 for the same period last year.

However, it is a decrease compared with the three months to September, when the median farm price was just over $1 million.

Real Estate Institute spokesperson Bryan Thomson says while the rural property market is very quiet, there has been an increase in interest in dairy farms due to high international dairy prices.

Mr Thomson says the average price per kilogram of milk solids improved in October to $33, up from $30 the previous month.