The last 12 months in the rural property market have been among of the toughest in decades, according to the General Manager of PGG Wrightson Real Estate, Peter Newbold.
Volumes have been low, values have been pressured and no one’s really sure where the bottom of the market is, Newbold told The Country’s Jamie Mackay.
“We’ve had some good pockets in rural, but overall it’s been back,” he said.
But it’s not all doom and gloom.
Although the biggest industry - dairy - has been relatively quiet, Newbold said a number of listings were in the pipeline for Spring.
“We’re seeing more activity in sheep and beef, cropping and horticulture.
“The horticulture one is interesting because, obviously, that industry has been battered by the weather.”
The upcoming election had also impacted the market, according to Newbold.
There was a lot of activity heading toward the election in October and Newbold reckoned PGG wouldn’t be alone in dealing with owners seeking appraisals of their properties.
“We’ve got [a lot of properties] booked in and I think a big bearing on the success in that space will be what happens in October, because if people come away from that election feeling positive, then we know what happens - sentiment increases and the property market moves forward in a positive manner.”
There were other challenges facing the market, aside from the election.
Newbold said factors such as high interest rates and low commodity prices had led to increased conversations around succession, along with general movement out of the industry.
“You’ve got a big proportion of, especially in the sheep and beef area, farms where the owners are at an age where they need to move on and retire.
“So succession and the managing of succession is a big [factor] at the moment.
“We’ve talked about it for years, but I think at the moment it’s probably gaining momentum because it’s not an easy thing to work through when you’ve got a family.”
So is there still a pool of people ready to purchase farms? In a word – yes.
“It’s small, but it’s well qualified. We do have people out there who are cashed up, but they’re very specific on what they want.
“So, yeah, less buyers, but those that are there are well qualified.”
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