Property report: Rural listings still going strong
Rowena Duncum from The Country caught up with Peter Newbold, General Manager of PGG Wrightson Rural Real Estate, out on the road down south.
First up, they looked at the state of autumn listings for rural properties. Peter reckons they're clearing them out well.
There is still a lot of interest, especially in sheep, beef and grazing properties. Listings will dry up as they usually do as we get closer to winter.
They agreed that grazing properties do look attractive at this time of year as farmers try to secure grazing over the winter. Purchasing gives you some long-term security. There's quite a bit of interest from the dairy side looking for long-term protection - and that's putting some pressure on supply.
Rowena asked about dairy properties in a wider sense. How are farms looking? In Peter's view, the year has been solid. The consensus was that there would have been a bit more activity, but people seem to be banking the pay-out at the moment. There's a sense there will be more movement this spring.
But what about lifestyle properties - the happy medium between being close to town and having a bit of space. Surely a good option for farmers who are stepping back a bit and adjusting to a town life. Peter is of the opinion that lifestyle properties in provincial New Zealand will stay strong. The rural sector is in good shape generally and communities are prospering. The challenge moving forward will be stock and availability of lifestyle properties.
Rowena raised the issue of succession planning. With some dairy farmers maybe contemplating their last season, succession is a huge topic.
Peter agrees that people are definitely thinking about how they move on. There are lots of challenges around the value of properties. Succession and retirement is a big issue and people need advice. Succession planning will probably loom even larger over the next one to three years.
As a final aside, Rowena asked whether there had been any more big kiwi fruit property sales. According to Peter, the season is winding down but there are a number of properties on the books for spring. The kiwi fruit industry is in a very strong position at the moment, but whether we'll see the same volumes into next year is an open question.
Click the play button for the full interview.