Property sellers hold off until weather improves
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.’’