Selling
Hide Search

Property Collection - Resurgent demand for dairy property

June 2021

In the past few months interest in dairy property has risen markedly.

Making good money this year, dairy farmers have the confidence to re-invest. With bank interest rates low and returns as strong and reliable as dairy difficult to find, external investors are also returning to the sector, driving demand for large-scale dairy properties, which has been understated for several years.

Recent Mid Canterbury dairy property sales have taken place under the radar, with vendors opting for minimum profile around transactions. Farms have therefore been offered discreetly to qualified purchasers. Willing buyers have been swiftly identified and sales agreed at prices comparable to historic values.

PC WTR21_Blog image_1060 x 700px_Resurgent

Demand for dairy property remains unsatisfied, with multiple genuine cash purchasers active: parties who are determined to buy property that meets their particular criteria. For motivated and well-resourced purchasers, reliability of water is the number one consideration. As more new land and water use regulations are established, assurance of future environmental compliance is also important. Even if dairy is no longer the primary land use option, purchasers want to see their investment safeguarded, with evidence of the farm’s capacity to remain profitable for the next ten to 15 years. After that, buyers are factoring in price and return on investment.

 

Tim Gallagher

Rural and Lifestyle Sales Consultant

M 027 801 2888

tim.gallagher@pggwrightson.co.nz

  

Read the full edition of the Winter Property Collection here >

PC WTR21_pggwre Publication page Panel 1150 x 250px - Copy.jpg