Increased sales leading into winter and kiwifruit market praised
The Country's Jamie Mackay is joined by PGG Wrightson's GM for Rural Real Estate Peter Newbold to take a look at the rural property market this month.
It had been an interesting period, according to Newbold, who noted that a lot of transactions that were supposed to happen over the duration of Covid-19 were now taking place.
In fact, some properties that were on the market for a long time had rechecked their values and had now sold, Newbold said.
The traditionally quiet winter period had yielded some positivity, with an increase of appraisals and some good listings on the horizon, Newbold said.
Mackay queried the increase of lifestyle properties as he believed "Covid has encouraged some people to get out of town".
Newbold agreed, saying Covid-19 had given people from larger metropolitan areas the opportunity to look into the rural market, particularly with working from home capabilities becoming the norm.
Kiwifruit had been praised as the star of the primary sector during Covid-19. Mackay asked if this had impacted the value of the land.
Newbold said this was interesting, as kiwifruit property had been a little bit quiet recently - and there had been pressure from the banks - but in comparison growers had seen a great return on investment.
As for dairy farms, Mackay believed they would be really good buys, as the industry moved out of a $7 NZD payout season.
Newbold agreed, saying milk products would always be in demand and as long as the return on living was adequate then it could be worth it.
Mackay queried the performance of sheep and beef properties, and the potential for the declining wool and lamb market.
Sheep and beef had held it together really well, compared to other sectors, Newbold said.
"We're starting to see demand from people who weren't traditionally active in that market place".
"Moa Flat" is a diversified property with many possible income streams. Run as an intensive cropping, finishing and calf rearing operation that could be reinstated to a working dairy unit with the consent to milk 360 cows. Other options could be to diversify into sheep / goat milking.