Dairy farm prices drop by 20 per cent in a month

Dairy farms are suffering multimillion-dollar price drops and prices fell by 20 per cent in the past month alone, latest figures show

Real Estate Institute figures out yesterday showed the median dairy farm price plunged from $3.75 million in May to $3 million last month.

Dairy farms were fetching a median $4,025,000 last June. Dairy farms remain the country's most valuable rural property type. Forestry land fetched a median $136,000, lifestyle $421,000 and horticulture $794,000.

The national median price for sales last month was $1.1 million, well down on last June's $1.8 million median.

Farms in the Auckland area remain the most expensive at a median $690,000 compared with the cheapest in Otago at $285,000.

The institute said 55 dairy farms were sold in New Zealand last month but rural spokesman Peter McDonald said he was concerned about lack of sales in many areas, particularly Southland.

To read the full NZ Herald article click here

Posted: 14 Jul 2009

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