Strong overseas markets and a reasonable spring have resulted in buoyant livestock sales for New Zealand, but does that mean sheep and beef properties will follow suit?
“Definitely,” says Peter Newbold, General Manager, Livestock & Real Estate for PGG Wrightson.
Newbold told The Country’s Jamie Mackay that interest rates, farmgate returns, and sheep and beef pricing could result in solid farm sales from “spring right the way through to Christmas”.
While there hadn’t been too many “big months” recently, Newbold said sales had been steady since autumn.
“So, things bode really well.
“I think it’s not going to boom, but I think we’re going to see really good activity over the next few months.”
On Wednesday, the Reserve Bank cut the Official Cash Rate from 3.25% to 3%.
Newbold said this was also good news for the rural property market.
“Real estate sales are reliant on sentiment, and sentiment will improve after that announcement, which, as we know, is probably long overdue.
“When you add all those other bits into it, it’s probably a perfect time to purchase a property.”
As for sellers, Newbold had some sage advice.
“I know people often carry on one season too long, but it’s a good time to sell your property, too.”
He used dairy as an example, saying that some were still looking to sell, despite the strong payout.
“Markets will only hold for so long, and so we are seeing - not big numbers - but we are seeing people going, ‘Right, I’m going to divest and do something else’.
Mackay asked if farm-to-forest conversions were an issue.
“It’s reduced considerably,” Newbold said.
“So I don’t see that as a big threat moving forward.”
He thought the main problem could be a reduction in stock numbers as properties were converted to trees.
“But I think the peak is gone. I think we’ll look back in years to come and go, ‘what happened there?’”
Stronger livestock returns are flowing through to rural property. Whether you’re looking to buy or sell, chat to one of your local PGG Wrightson sales consultants to find out what that means for you.
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