Adrian Chang from BusinessDay reports the rural property market continued to dive in February, with the total number of sales dropping to 274 compared with 305 in January, and the median sale value dropping from $1,525,000 to $1,262,500.

 Real Estate Institute of New Zealand data on the rural market shows that the median sale value of farms dropped to $1,262,500 from $1,525,000 in the three months to January.

This was accompanied by total national sales dropping to 274 farms in the three months to February, down from 305 in the January period.  This is compared to the 504 sold in the corresponding period in 2007, and 713 sales in 2008.

REINZ rural spokesman Murray Cleland said the February results show the market is beginning to stabilise at 2007 levels, where the average sale price of a farm was $1,300,000, though that needed to be seen in the context of the massive dairy payout of that season.

Fonterra's 2008 payout was a record $7.90 per kg of milk solids.  Its projected payout for this season is $5.10 per kg.

Though there were only 30 sales of dairy farms in the February period, well below the 83 seen in 2007 and 158 in 2008, dairy farms still fetch a premium and have held prices above 2007 levels despite a gradual slip back.