A total of 51 more farms were sold for the three months ending August 2013 than the same period last year.

Statistics released from the Real Estate Institute of NZ shows there were 369 farm sales in the three months to end of August 2013, compared to 438 farm sales for the three months ended July 2013 (-15.8 per cent).

According to the figures, 1,541 farms were sold in the year to August 2013, 6.2 per cent more than were sold in the year to August 2012.

Eight regions recorded increases in sales volume for the three months ended August 2013 compared to the three months ended August 2012.

Bay of Plenty recorded the largest increase in sales (+18 sales), followed by Auckland (+15 sales) and Waikato and Taranaki (+13 sales).

Six regions recorded decreases in sales volume with Hawkes Bay recording the largest fall (-9 sales), followed by Wellington and Nelson (-6 sales) and Canterbury (-5 sales). Compared to the three months ended July 2013 one region recorded an increase in sales.

The median price per hectare for all farms sold in the three months to August 2013 was $21,676; a 20.7 per cent increase on the $17,955 recorded for three months ended August 2012. The median price per hectare rose 4.9 per cent compared to July.

'The relatively constrained sales figures for August are due, in the main, to many farmers still being focussed on peak seasonal workloads as opposed to trading property”, says REINZ Rural Spokesman Brian Peacocke.

'The combination of the mix of extremely favourable on-farm conditions, kind weather and early grass growth being the best experienced by many, and the prospect of increasing levels of income is being reflected in the mood of optimism prevailing in the rural sector. The livestock market in saleyards around the country is buoyant and a healthy barometer for the rural environment.”

Brian says because of those conditions, the majority of farmers are in good spirits and many appear to be happy to retain their properties for now in order to capitalise on the higher returns being predicted by the export sector.

'The net result across New Zealand is strong demand, particularly for quality, sensibly-priced property, and a current shortage of supply.

'Whilst sales of dairy farms for the current period eased slightly, sales of finishing and grazing properties have held at steady levels in most regions. Horticultural sales have also been steady, reflecting increasing interest in the kiwifruit market, particularly in the Bay of Plenty district. In summary, the rural sector is in good heart and if the supply / demand situation remains as it is currently, prices will inevitably come under pressure.”

Grazing properties accounted for the largest number of sales with 42.3 per cent share of all sales over the three months to August.

Finishing properties accounted for 25.5 per cent, dairy properties accounted for 9.5 per cent and horticulture properties accounted for 10.0 per cent of all sales. These four property types accounted for 87.3 per cent of all sales during the three months ended August 2013.