Upturn will encourage busy spring market
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.