Fonterra’s bullish payout forecast seems to have injected confidence into the property market.
The Real Estate Institute is predicting a rise in farm sales o
ver the next few months after the median farm sale price rose in the quarter to January.
The figure lifted from $1m the same time last year to $1.1m, even though sale numbers only rose modestly.
Real Estate Institute Market Spokesperson Peter McDonald says there is a high level of interest across farms of all types.
"Particularly in the dairy industry, the outlook looks very good.
"The Fonterra payout looks to be very encouraging and sustainable, and also there is a little bit of freeing up with banking policies as well."
Mr McDonald says good numbers coming out of Fonterra in both the forecast and GDT rises is instilling confidence in both buyers and sellers.
For more on the farm sales figures head to RREINZ here.
