<p>Doyle Valuations Ltd</p><p>General Economic Commentary, King Country, Year to June 2010 There appears to be a “Mexican standoff” in the rural market. Only 13 pastoral farms over 100ha have sold in the last 12 months, the average size at 285.90ha, the median price at $1,519,000. The average sale price per hectare is $5,676, a 23% drop on last quarter. Sale numbers have declined by 23.5%. From sales and anecdotal evidence, it is apparent that a significant drop of up to 40% in the value of land has occurred over the last 12 months. Only 6 dairy sales over 40ha were recorded, sale numbers still very low. The average size was 124.23ha, the median at $2,000,000. The average sale price per hectare is $19,426, a 26.5% decrease on last quarter.</p><p>11 smaller lifestyle blocks have sold over the last year in Taumarunui, sale numbers similar to the last quarter. The average lifestyle price was $261,000, the average size at 2.54ha. Prices have softened slightly.</p><p>The Te Kuiti lifestyle market had 14 sales this year, 26% less than the previous quarter. The average price was $262,928, the average size at 1.78ha. </p><p>In Otorohanga, $452,600 was the average, with the average size at 1.69ha. 11 sales were recorded, numbers significantly lower than the previous quarter. Prices have firmed slightly.</p><p>Ohakune showed the highest median house price at $225,000. Sale numbers have declined slightly but we are now heading into the busiest part of the season again. The average sale price was $239,457, with 37 sales recorded.</p><p>Taumarunui residential sale numbers for the year increased by 10% to 55. The median decreased by 3.7% to $130,000. The average sale price remained steady at $142,361. Based on the last 6-months alone, it appears as though sale numbers will improve slightly but the median is predicted to soften further. Real Estate agents report increasing enquiry.</p><p>The Te Kuiti median fell sharply to $134,000. Sale numbers fell by 11% to 41. The average sale price fell by 4.1% to $150,000. On the 6-month figures the median is predicted to rebound to around $150,000.</p><p>Otorohanga’s median fell by 10% to $185,000, a figure not seen since April 2007. Sale numbers increased by 10% to 41 for the year. The average sale price fell by 3.6% to $209,476. Indications are that the median house price will remain steady from here on.</p><p>The national median house price by comparison rose by 1.2% to $356,000. The REINZ Monthly Housing Price Index fell 0.4% for the month of April but rose 6.2% for the year. Doyle Valuations Ltd 2</p><p>Number of House Sales</p><p>70 60</p><p>50 Ohakune 40 Taum arunui 30 Te Kuiti 20 Otorohanga</p><p>10 0 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10</p><p>Median House Price</p><p>240000 220000 200000 Ohakune 180000 Otorohanga 160000 Te Kuiti 140000 Taum arunui 120000 100000</p><p>9 9 9 0 0 0 0 0 0 0 9 0 0 1 1 1 1 - -0 ------1 -1 - p t v c n b r r y n e c o e a e a p a u S O N D J F M A M J</p><p>Jun10 Economic Commentary Doyle Valuations Ltd 3</p><p>Median House Price</p><p>400000 350000 National 300000 median 250000 Ohakune 200000 150000 Otorohanga 100000 50000 Te Kuiti 0 Taumarunui 7 8 9 0 0 0 0 1 0 0 0 0 2 2 2 2</p><p>Year</p><p>Jun10 Economic Commentary Doyle Valuations Ltd 4</p><p>The official cash rate remained steady at 2.50%. Inflation remained steady at 2.0% and unemployment has fallen to 6%.</p><p>This commentary encompasses the past years information and is updated on a quarterly basis. Its purpose is to illustrate property trends in the King Country, which is a region not normally reported upon. Whilst the information contained above may not be specifically relevant to the property being reported upon, it’s purpose is to provide a useful barometer for the towns and wider region. It is not intended to be used as, or take the place of, a valuation report, which provides specific and timely property advice. Any persons relying on this commentary do so at their own risk. For back issues, please log on to www.doylevaluations.co.nz</p><p>Jun10 Economic Commentary</p>