We continue to monitor lifestyle sales (1 ha-20 ha), and with March REINZ data for the first quarter now to hand, the market is $100m up on the same time last year with 834 sales, for a billion dollars to March 2023. Values are holding up well, with the March 2024 median sale price at $1,050,000, up from $980,000 for March last year.
Buyer interest in the lifestyle market remains strong as we transition into autumn. We are actively launching new campaigns and anticipating successful sales. For those considering their options, don’t let daylight savings changes put you off; there is definite market interest at or above the same time last year.
Rural Real estate: Buyers are still coming forward, the market is definitely operating, and there have been $600m of rural sales already this calendar year.
Rural sales for the first quarter of this year equalled $600m back $140m on the same time last year, from 200+ sales, approximately 40 fewer sales than last year. This season, we are not seeing high-value sales to forestry in the results. Well, not yet. February saw seven decisions granted by the Overseas Investment Office (OIO) to convert pastoral-based hill country to production forestry.
All large-scale properties, typically LUC 6, 7 and 8, at significant sale prices. These results have yet to all flow through into confirmed sales. This is the most significant tranche of OIO decision results since September-October 2023, which, at that time, reflected a deferred pipeline for most of the last calendar year. In short, this is significant.
There is a real risk in relying on these OIO decisions in support of a current valuation or appraisal, given that Land Use Classifications have a considerable influence on the decision outcomes and independent regional government policy settings are likely to be a factor, too. For now, the business of farming continues to drive market activity.
We are seeing farmer buyers active in the market who are still prepared to operate this season but have yet to complete a purchase. Our auction programmes continue to help the market get a read of fair market value, so don’t let the autumn season trip you up here, either.
Historically, we have successfully sold sheep and beef properties through the winter, and we expect this season to be no different. For those looking to expand their farming operations at realistic valuations, 2024 offers better choice than has been the case for the last 2-3 seasons.
From the bottom of the south to the top of the north, we have a brilliant lineup of rural properties coming to the market, and we thank our vendors for their support.
Whether you are looking to buy or sell your farm, we have the team to exceed your expectations. With a great mix of energy and experience on your side, you can’t go past Property Brokers.
