Farm prices continue to drop with the median price per hectare now at the lowest point since September 2003.
Figures released by the Real Estate Institute of New Zealand showed the median price per hectare for all farms sold in the three months to July was $14,649, compared with $15,568 in the three months to June and $17,901 for the three months to July last year.
It continued the downward trend in median prices evident since early 2009. The decline reflected the lower number of dairy farms sold during the winter period, REINZ rural market spokesman Brian Peacocke said.
A drop in farm sales for the three months to July reflected the time of year and the focus of farmers on seasonal workloads, Mr Peacocke said.
There were 301 farm sales in the three-month period, compared with 393 in the three months to June and 262 sales in the three months to July last year.
The drop reversed the trend of the past four months, which saw sales increase from 190 in the three months ended March to 393 in the three months ended June.
Farmers were keenly watching events in financial markets and the trend in the New Zealand dollar. Forward inquiry for quality properties remained positive, Mr Peacocke said.
All regions, except Wellington, recorded a fall in sales for the three months ended July, with Southland, Canterbury and Otago recording the largest number.
In Otago, 35 farms sold in July, comprising 20 grazing, 11 finishing, two arable, one dairy and one horticulture. That compared with 48 in June and 22 in July last year.
Southland was again the region with the most farm sales, with 44 farms sold in July.