Traditionally a general election puts the brakes on activity in the rural property market. This year, that appears less likely than in previous years.

PGG Wrightson Real Estate Sales Manager for Mid and South Canterbury and North Otago Calvin Leen says the influence of government policy on farm sales is reducing.

“In days gone by the timing of an election might have put doubts in some people’s minds and had an impact on the market. However, that is no longer the case. All the usual factors that motivate farmers to sell, such as growing the business, downsizing, death, or divorce, still apply during an election campaign.

“In most farming families now, interest rates, income and expenditure, and environmental factors have more influence on what the market will do than elections,” says Calvin.

Peter Crean PGG Wrightson Real Estate Canterbury/West Coast Real Estate Manager agrees, pointing out that farmers need to decide early whether to sell.

“If you are going to sell, plenty of preparation is required for your property to be ready to meet the market. As well as maintenance to the likes of fencing, laneways, yards, and sheds, you need to be ready to show buyers full and accurate farm records. These should cover issues including irrigation consents, stocking rates, farm improvements, production history, inputs, pasture development and business expenses, not to mention environmental compliance.

“That is a long list. If you’ve already made your mind up, those preparation tasks still need to be done regardless of the election,” he says.

PGG Wrightson Real Estate Waikato based Rural Sales Consultant Peter Wylie says most of the banks are taking this year’s election in their stride.

“Looking at the election issues, no party’s policies are going to change the market much. After the 2017 election, changing the overseas investment criteria made a difference. This time around, I don’t see anything significant in the various policies. Although forestry is probably the biggest issue for rural communities, that market influence is unlikely to change whatever the election outcome.

“I don’t know of anyone, buyer or a seller, who is hanging back from the market because of the election,” he says.

PGG Wrightson Real Estate Business Manager David Henderson sums it up:

“We already have several properties across the country listed earlier in the season than normal. These vendors are motivated to go to the market earlier, rather than wait until the traditional spring timing. Whether that is too close to the election or not, they are keen to start their marketing campaigns.

“Our advice, whether you are thinking about listing or purchasing, do not pay too much attention to events on the political stage. People make decisions about rural property for other reasons.

“Who wins the election is out of your control. When you are considering buying, other outside factors, like bank interest rates, inflation, and ongoing world events have more weight. No matter who wins the election, little will change overnight, therefore if you are ready to sell, don’t let the election stand in your way.”

Election factor over-rated in property market trends

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