Jamie Mackay from The Country had his monthly catch-up with Peter Newbold, General Manager of PGG Wrightson Real Estate.

The question on everyone's lips: is the rural market mirroring the housing market with a lack of activity and falling prices?

Peter reckons rural is a bit different from residential.  Sales are still moving through with the peak April period happening now.

The one thing changing is more due diligence taking place which is pushing things out.  Peter also noted the number of late listings coming through in the autumn.  Pricing seems to have taken place already and buyers seem to be happy with the current level.  And the buyer pool is small and very discerning.

Jamie remarked on a tightening up by the banks.  It seems that if you want to buy a farm at the moment, you need a pretty good case.  Peter agreed saying that a big factor is where values currently sit.  In some areas they have dropped off. 

Jamie then popped the difficult question.  In percentage terms, how much has the rural market dropped by?  A tough one, says Peter.

You need to look at it between all the different categories.  Peter is naturally reluctant to put a percentage on it.  But there is definitely movement down in all categories.  Factors like proximity to town, soil and improvements to the property must be taken into account.

Jamie threw out a number: 10 to 20 percent.  Peter reckons that could fit with a lot of properties at the moment.

Finally, Jamie touched on the lifestyle market which saw a boom during COVID.  What's happening now?  Peter believes values are at the bottom of the cycle.  The challenge will be how it looks in spring.  The upcoming election may stall things but the thinking is there will be more activity coming into spring.

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