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Property Collection - Golden appeal of kiwifruit glows ever brighter

June 2021

Values for kiwifruit property continue their apparently irresistible climb.

Gauging total revenue across the sector for the 2020-21 season, growers reportedly averaged $76,722 per hectare of green kiwifruit, and $158,599 per hectare of gold. Such strong returns mean demand for orchards is huge, while few owners are motivated to sell, preferring rather to continue to grow the crop and reap the profits. Benchmark prices for properties that do sell therefore rise and rise.

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Most recently a small orchard comprising a mix of green and gold vines sold at a price equating to $1.7 million per canopy hectare for the gold and $700,000 per canopy hectare for the green, a new record in both categories.

To underline this zeal to participate in such a highly rewarding sector, Zespri’s annual quota of licences, giving those who obtain them the right to grow specific varieties, was again over-subscribed by more than 100 per cent. For the gold variety, licences for more than 1500 hectares were sought though only 700 hectares were available. These were issued at a median price of $550,000 per hectare, up from $400,000 last year, $290,000 in 2019 and $265,000 in 2018. Meanwhile, demand to grow the new red kiwifruit variety also jumped. With licences available to grow 350 hectares, the median price for those granted was just short of $75,000 per hectare, up from $62,500 last year, and the issue of red licences was also more than 100 per cent over-subscribed. On such a high level of unmet demand, prices next year are likely to rise still further.

 

Stan Robb

Rural & Lifestyle Sales Consultant

M 027 473 9322

CandSRobb@pggwrightson.co.nz

 

Read the full edition of the Winter Property Collection here >

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