Rural property sales up but prices flat

Rural property sales rose more than 85 per cent in the three months to November compared to the same time last year, though prices remained flat.

Despite the large lift in the number of sales taking place, values hovered around the same average as last year at $20,445, according to the latest Real Estate Institute of New Zealand figures. However, that was a lift from the $18,878 seen in the three months to October.

The rise in sale numbers varied across the regions.

Canterbury rural sales were up the most, with 11 more transactions on the same period last year, followed by 10 more in Taranaki and nine more in Auckland.

But Wellington rural property sales declined by six, while there were also a slight drop in the Wanganui, Manawatu, Nelson and Hawke's Bay regions.

Real Estate Institute of New Zealand's rural market commentator Brian Peacocke said sales were helped by good growing conditions in spring and low interest rates combined with favourable product prices.

''Despite these positive factors, buyers remain quite selective in their purchase decisions,'' Peacocke said.

''Prices for dairy farms have seen a noticeable lift with peak prices being paid in excess of $50,000 per hectare in Canterbury and $55,000 per hectare in the Waikato. Although these values include Fonterra shares, they nevertheless reflect a solid gain on prices being paid earlier in the year.''

Grazing properties were the most popular rural sector type with buyers during the three months to November, making up more than 59 per cent of sales.