Momentum in the rural property market has been building over the past couple of months, and, with autumn around the corner, it’s shaping up as an ideal time for vendors to prepare for sale, says Peter Newbold, General Manager Livestock & Real Estate for PGG Wrightson.
Newbold told The Country’s Jamie Mackay that sales had been ahead of what was anticipated, and the future looked bright.
“I see the momentum continuing, and when you look ahead at all the listings coming to the market, and I guess where buyers’ headspace is, I think it’s looking really, really good,” he said.
Traditionally, autumn is the most favoured time to sell, and Newbold said he’d seen a flurry of activity lately with vendors preparing their properties.
He predicted that some properties would come to market early as a result.
“I think that’s where we’re going to see some real momentum in and around the sheep and beef sector.
“And if you look on the other side, all those farm returns are looking really strong, and that’s only going to assist that segment.
“Pre-November’s been a little bit quiet, but we’ve seen over the last couple of months some real activity there.”
Pictured: Hills Creek Station, a rare Central Otago property available for sale.
Buoyant sheep and beef prices have resulted in increased interest in farms from that sector.
Newbold said on-farm positivity was a key driver.
“You go out into the field now, and a lot of farmers have got a big smile on their face, they’re enjoying things and long may it continue.”
This had a knock-on effect on sales, with no signs of letting up yet, he said.
“It’s having an impact on people wanting to either expand their current footprint or get into that industry.
“If you look ahead, all those indicators look really strong.
“So, it’s had a big impact on the sheep and beef sector, and I think that will continue, which is great.”
Pictured: An expansive 299.4192-hectare dairy unit, located just 10km from Tokanui and 70km from Invercargill.
Dairy was also enjoying a moment in the sun, especially in Southland, where Mackay said he’d heard a PGG Wrightson agent say that farms were selling like hot cakes.
“He’s 100% right,” Newbold agreed.
He said that, with dairy prices firming again, there was a lot of interest in quality properties, with a solid buyer pool in Southland.
“So look, that market’s strong, and there’s a lot of people that are wanting to get into it.”
Pictured: Modern large scale, G3 Gold Orchard in Edgecumbe.
Meanwhile, the kiwifruit market was starting to pick up.
“We’re just starting to see signs now of properties coming to the market and interest from buyers,” Newbold said.
“It’s been probably slow in that respect, but now I think everything’s settled, and I think we’re going to see quite a bit of activity in that.”
Overall, positivity in the primary sectors is good news for rural real estate.
“If you add up all the various sectors, sheep and beef, dairy, hort, they’re all in a fantastic space.”
Newbold said this boded well for the future.
“It’ll help a lot of those farmers who want to retire, or they’ve got succession or want to expand.
“Things are looking great.”
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