Up­turn will en­cour­age busy spring mar­ket

Matamata Chronicle - - Your Paper, Your Place -

When you are in­volved in mar­ket­ing ru­ral prop­erty, spring is the busiest time as farm­ers pre­fer to of­fer farms for sale once calv­ing is over and while land looks its best with abun­dant spring growth.

Plenty of farm­ers have asked me to ap­praise their farms in re­cent weeks as they pre­pare to of­fer them for spring sale.

A few re­acted di­rectly to the good news of the Global Dairy Trade’s Au­gust auc­tions, im­me­di­ately prompt­ing them to con­sider buy­ing or sell­ing land.

Many have held back for the past year or two, wait­ing for dairy­ing to pass through the low point of its cy­cle.

As this ap­pears to be fi­nally hap­pen­ing, my phone has been busy with calls from both buy­ers and sell­ers.

Real Es­tate In­sti­tute dairy prop­erty sta­tis­tics for the three months to July 31 in­di­cate farm sales and val­ues are hold­ing steady na­tion­wide.

My col­leagues across PGG Wright­son Real Es­tate’s na­tional net­work sug­gest farms are cur­rently sell­ing at a dis­count of be­tween 10 and 15 per cent com­pared to peak lev­els two years ago.

That is the case for Mata­mata and South Waikato dairy farms al­though, in more re­mote dis- tricts, the dis­count is greater.

Farm­ers who have made con­sid­er­able ef­forts to trade through the re­cent tough times now ap­pear likely to be re­warded.

As con­fi­dence rises, buy­ers and sell­ers should find it eas­ier to reach agree­ment on the value of dairy prop­erty.

If so, and as those who have sat on the fence look to make up for lost time, a busy spring is in prospect.

Po­ten­tial buy­ers, who have equity and have been wait­ing for the right tim­ing, are now ready to come for­ward and take ad­van­tage of where dairy prop­erty val­ues sit.

They are in a strong po­si­tion and should do well in the com­ing months.

At PGG Wright­son Real Es­tate’s re­cent na­tional con­fer­ence, I was de­lighted to achieve sev­enth place in ru­ral sales na­tion­wide, sec­ond for the Waikato, and won the pres­ti­gious award for mar­ket­ing.

My sin­cere thanks to ev­ery­one I do busi­ness with for your sup­port, which en­abled this recog­ni­tion, and I look for­ward to an­other suc­cess­ful year ahead.

Richard Leach sells ru­ral prop­erty for PGG Wright­son Real Es­tate. Based in Pu­taruru, he op­er­ates from Mata­mata through the Cen­tral Plateau to Taupo.

Richard Leach is pre­par­ing for a busy pe­riod in the ru­ral prop­erty mar­ket.

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