A surge of farm sales in the three months ending in March is the highest number of sales in a three-month period since September 2008 - the start of the global financial crisis.
Figures released by the Real Estate Institute of New Zealand showed there were 207 more sales (up 108.9%) in the three months ending in March than for the three months ending in March 2011.
The sales reflected the strengthening of the rural economy, bolstered by favourable growing conditions, very good levels of production, solid market returns and a positive climate for borrowing, REINZ rural market spokesman Brian Peacocke said in a statement.
However, sale prices had remained relatively steady with buyers and sellers, in many cases, moving slowly from previous positions to allow transactions to occur.
"Irrespective of the above, a note of caution is clearly emerging as the industry prepares for winter, with the expectation that income levels may moderate next season and, given seasonal variabilities, it is unlikely the combination of current benevolent factors will be repeated for some time to come," he said.
The median price per hectare for all farms sold in the three-month period was $20,056, a 7.3% decrease on the $21,641 recorded for the three months ending in February and up 14% on the $17,577 recorded for the three months to March 2011.
In Otago, 30 farms sold, mostly grazing and finishing properties, up five from the corresponding time last year and up 13 from 2010. Eighty-five lifestyle blocks in the region sold, up from 42 for the corresponding period last year and 57 in 2010.
