Strong demand for dairy farms is continuing to underpin New Zealand’s rural property market, says PGG Wrightson General Manager Livestock & Real Estate Peter Newbold.
Newbold said Canterbury dairy properties were selling for as much as $89,000 a hectare, with others fetching prices in the high $70,000s.
“It is a lot of money,” he told The Country’s Jamie Mackay.
“The demand for dairy in that part of the world is high.”
Newbold said a lack of listings was helping support values.
“There’s not a lot of listings coming to the market, and what you’re seeing is those that are currently in the dairy game are wanting to add to it.
“And then the other big thing we’re noticing is you’ve got new entrants coming in who are wanting to have a slice of it.
“So I don’t think that’s going to change; the outlook looks good.”
Newbold said strong dairy demand was also driving land-use change in Canterbury.
“You’re seeing a lot of arable moving to dairy, which then has an impact on the livestock business because where are we going to put all those lambs in the winter coming up?
“So a lot of change is taking place in Canterbury.”
Staying with sheep and beef, Newbold said the buoyant sector hadn’t increased listings, but he expected that to pick up in the coming months.
“It’s interesting, a month or so ago I thought we might have seen a little bit more activity at the moment,” he said.
“But it’s probably just that we’re in winter mode.
“Yes, it will come away; we’re starting to see activity.”
He predicted properties would come to market in the next four to six weeks, but that vendors were currently holding back.
“The biggest challenge is that a lot are sitting back there who probably know they have to sell; they’re thinking, ‘God, we had a great year last year, do we bank another year?’”
Newbold said rising costs were also a factor for vendors to consider.
“So there’s that challenge between holding on, having another good year, or actually selling while the market’s strong and there’s demand.”
Newbold said that while it could be tempting to hold on for another year, strong markets often presented good selling opportunities.
“Things do change,” he cautioned.
Newbold said the kiwifruit sector was also showing signs of increased listing activity.
“A couple of months ago I’d have said no, it’s going to be quiet, but definitely we’re seeing some activity.”
He said more properties were expected to come to market, although not in large numbers.
“We won’t see a huge flood to the market, but we will see more listings moving forward.”
Strong returns and a positive industry outlook were supporting confidence, he said.
With demand remaining strong across key rural sectors, deciding when to make your next move can be just as important as the move itself.
Our local agents can help you understand current market conditions, weigh up your options and make an informed decision about what comes next.
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