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Rural property - Source: ONE News -
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The rural property market is continuing to decline, according to the latest figures from the Real Estate Institute of New Zealand (REINZ).
REINZ says the total number of farms sold in the three months to January was 208, almost 100 fewer than the same period last year and down more than 500 on 2008.
The institute says dairy farms are selling slowly. During the three months 33 dairy farms sold, down on the 40 sold in the same period in 2009 and significantly fewer than the 156 sold in the three months to January 2009.
"What is most alarming is that there were only seven dairy farms sold in the month of January itself, which is normally a prime time for selling dairy farms," says REINZ president Peter McDonald.
REINZ says buyers still have confidence in the rural sector but that view does not appear to be shared by lenders.
While farm prices held steady at a national median of $1 million when compared with the three months to December 2009, it is more than $500,000 less than the median price in the three months to January 2009.
Regionally, Waiakato reported the strongest number of sales with 26 farms sold, followed by Manawatu/Wanganui with 24 sales.
Farms in Taranaki fetched the highest prices with a median price of $2.8 million.
