17 Dec 2010

Slight rise in number of farms sold

10:24 am on 17 December 2010

There's been a slight lift in the rural property market, with a small rise in the number of farm sales and the median price.

The market has been depressed for months, but the latest Real Estate Institute figures show that 170 farms were sold in the three months to end of November - nearly 30 more than the previous three months.

The median sale price for past three months has also lifted to more than $968,000, which is 10% higher than a year ago.

Real Estate Institute spokesperson Bryan Thomson says after a very quiet period there is now a higher level of genuine inquiry and increased activity in the rural market.

He says 14 dairy farms were sold in the three months to November, and the average price per kilogram of milk solids has recovered from $33 in October to $37 in November.

On a regional basis, 24 rural properties in the Bay of Plenty were sold over the past three months, most of them horticultural properties.

Canterbury was next highest with 22 farms sold and 19 rural properties were sold in Waikato.