But Bayleys national country manager Duncan Ross cautioned the revised price did not indicate a nationwide trend.
In the 2013-14 season the Grey Valley farm was running 1350 cows and producing 655,806 kilograms of milksolids; now it is down to 1200 cows and 381,540kg/MS.
The Real Estate Institute recently reported “record” numbers of dairy farms for sale over the past year but few buyers.
Ross said good prices were still being received for first-rate tier one properties in Waikato, Taranaki and irrigated Canterbury areas.
“They are often strategic buys of neighbouring properties, people who always wanted to add some land to what they’ve got.
“Tier two and three is where we’re seeing a greater number of properties coming to the market than a year ago.”
Buyers had greater options but at the same time banks were showing more reluctance to provide debt support.
Regarding the West Coast farm, Ross said following the market re-set since the record high dairy prices of 2013-14, there had been few sales in the region and thus limited evidence for where farm price levels now sat.
The 438-hectare freehold farm in the Grey Valley, inland midway between Greymouth and Westport, dwarfs most other dairying units in the region, said Bayleys saleswoman Shari Ferguson, who is marketing the property.
The vendor was seeking offers over $21,000 per hectare.
“Five years ago, good-quality West Coast dairy farms were selling for between $28,000 and $30,000 a hectare. While some vendors still want those prices, buyers have backed off, which is why this farm in the Grey Valley is priced to meet the market.”
The farm has three four-bedroom residences – including an owner’s homestead – and one two-bedroom worker’s cottage.
There is a 56-bale rotary shed supported by a 600 cow feed pad and yard, and irrigation over 310ha.
Effluent on the property is collected in two large ponds before being irrigated through a K-line system. Further irrigation of the property is delivered from two consented intakes out of the Grey River. In an average season, the property is irrigated between 40 – 50 days.
The farm is being sold with 616,173 Westland Milk Products shares included in the package, worth $924,000.
Ferguson said she had received expressions of interest from sharemilkers looking to potentially become involved with any new owner on the block.