Caution creeps into rural land market, but spring optimism remains

Global uncertainty has taken some momentum out of the rural land market, with buyers adopting a more cautious approach.

However, activity is expected to lift again in spring as deferred listings return to the market, PGG Wrightson General Manager of Livestock and Real Estate Peter Newbold said.

Newbold told The Country’s Jamie Mackay that conflict in the Middle East had "put a little bit of an edge on transactions" over the last six to eight weeks.

“Definitely, things have stalled somewhat," he said.

"I think we’ll see more listings come in the spring, and I think we’ll see more activity if the Middle East sorts itself out."

Newbold said transactions in the rural sector were still buoyant, with dairy, horticulture and parts of sheep and beef “still very solid”.

Kiwifruit was bouncing back from a quieter period, with quality properties selling quickly and attracting interest from outside the traditional kiwifruit sector.

“People are looking at it as a long-term investment or an option to what they’re currently doing.

“So yeah, big change there, and there’s probably a shortage of stock if I look at it, at the moment."

Dairy was another sector facing a shortage of listings, a trend Newbold flagged last month and said had changed little since.

“As we’re coming to the end of the season now, basically what’s on hand will be sold, and I think we’ll see another increase again in the spring.”

He said some Fonterra farmers were expected to use capital repayment funds, paid out this week, to invest in further land purchases.

By contrast, Newbold said forestry activity had slowed significantly, with little expectation of improvement in the near term.

“Go back a couple of years, where it was all go – definitely that’s reversed now.”

Over time, he said, some rural properties may still look to plant trees on blocks that were uneconomic for pastoral use.

With the market showing signs of caution now and optimism building toward spring, knowing when and how to act matters.

Our local PGG Wrightson Real Estate agents can help you make sense of the timing and plan your next move with confidence.

Connect with your local agent today.