Prop­erty sell­ers hold off un­til weather im­proves

Matamata Chronicle - - Out & About - RICHARD LEACH

You don’t need to be a me­te­o­rol­o­gist to see that this spring has been par­tic­u­larly wet.

With such high rain­fall, farm­ers who are oth­er­wise look­ing to sell prop­erty have put plans on hold, wait­ing for bet­ter con­di­tions to present farm­land to its great­est ad­van­tage.

We have seen lo­cal farm­ers, who are oth­er­wise mo­ti­vated to sell, hold­ing back due to the weather.

Many of my PGG Wright­son Real Es­tate col­leagues in the up­per North Is­land are re­port­ing the same, re­sult­ing in the spring mar­ket tak­ing longer than nor­mal to gather mo­men­tum.

Once the weather bright­ens up and ground con­di­tions be­come eas­ier, those farm­ers who have held back will be ready to of­fer prop­erty for sale and the mar­ket will gain trac­tion.

Whether that hap­pens be­fore Christ­mas or in the new year is dif­fi­cult to pre­dict.

Farms that are al­ready sell­ing should prompt some to act now rather than wait.

In mid-Oc­to­ber, a 126 hectare dairy farm on Mata­mata’s out- skirts sold strongly, pro­vid­ing a lo­cal mar­ket bench­mark.

In May, an­other Mata­mata dairy farm changed hands for around $72,000 per hectare.

This more re­cent sale was at a higher value, and should give both ven­dors and pur­chasers some con­fi­dence on where the cur­rent mar­ket sits.

A num­ber of other lo­cal farms cur­rently for sale will pro­vide an on­go­ing gauge for mar­ket sen­ti­ment.

A 79 hectare Ara­puni dry­s­tock prop­erty goes to auc­tion on Novem­ber 24; a 104 hectare Pu­taruru dairy farm is set to be listed shortly; a 411 hectare Pu­taruru dairy unit, pre­vi­ously con­verted from forestry, is at­tract­ing in­ter­est; and a 450 hectare Pu­taruru dairy prop­erty, which will be of­fered for sale be­fore the end of Oc­to­ber, will all test how quickly farm­ers are re­gain­ing con­fi­dence since dairy re­turns started trend­ing up.

Mo­ti­vated pur­chasers will con­sider these farms care­fully. De­pend­ing on how well they sell should prompt a num­ber of oth­ers to also of­fer prop­erty for sale.

As long as val­ues are at the right level to pro­vide con­fi­dence to both buy­ers and sell­ers, it should be a busy sum­mer and au­tumn.

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

‘‘We have seen lo­cal farm­ers, who are oth­er­wise mo­ti­vated to sell, hold­ing back due to the weather.’’

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