Ru­ral prop­erty mar­ket be­gin­ning to move

Matamata Chronicle - - Property - RICHARD LEACH

In any given sea­son, there will al­ways be a pro­por­tion of farm­ers ready to re­tire.

Over the past two years, that num­ber has dropped. As dairy re­turns have ebbed back through the lower part of their cy­cle, farm­ers who would oth­er­wise sell prop­erty and exit the industry have held on, wait­ing for bet­ter times and in­creased prop­erty val­ues.

Re­cent pos­i­tive move­ment in the Global Dairy Trade auc­tion is now mo­ti­vat­ing a num­ber of these farm­ers to re­ac­ti­vate their re­tire- ment plans and en­ter the prop­erty mar­ket.

That means over the next few weeks the num­ber of prop­er­ties listed for sale will pick up.

Mean­while, some en­cour­ag­ing local trans­ac­tions have oc­curred, with good qual­ity dairy farms around Mata­mata, Pu­taruru, Te Awa­mutu and Hamil­ton sell­ing at val­ues be­tween $40,000 and the mid $70,000s per hectare.

Pric­ing de­pends on the spec­i­fi­ca­tions, con­tour and lo­ca­tion of the prop­er­ties con­cerned. Buy­ers are gen­er­ally local es­tab­lished farm­ers, with equity, who are in­creas­ing their hold­ings.

Al­though there is also en­quiry from sharemilk­ers want­ing to step up to farm own­er­ship, the even­tual pur­chases are be­ing made by those who al­ready own land and are in­creas­ing the scale of their op­er­a­tions.

To this ac­tiv­ity, add in a cou­ple of im­pend­ing local auc­tions.

A 79 hectare Ara­puni dry­s­tock prop­erty with po­ten­tial for use as dairy sup­port goes to auc­tion on November 24, while a 58 hectare Pu­taruru dairy farm goes un­der the ham­mer on De­cem­ber 15.

Auc­tions give us a def­i­nite pub­lic gauge of mar­ket con­fi­dence, which those who are think­ing about sell­ing will re­act to. These two auc­tions may per­suade more of those who have sat back that the time to move on has ar­rived.

So long as they are re­al­is­tic, these ven­dors can ex­pect a pos­i­tive re­sponse from the mar­ket in the new year, par­tic­u­larly good qual­ity prop­erty.

We may well have a par­tic­u­larly busy sum­mer in the local ru­ral prop­erty mar­ket. If so, those who act swiftly and de­ci­sively will reap the great­est re­wards.

Richard Leach sells ru­ral prop­erty for PGG Wright­son Real Es­tate. Based in Pu­taruru, he op­er­ates from Mata­mata through the Cen­tral Plateau to Taupo. Bring­ing a strong farm­ing and sales back­ground to the ru­ral prop­erty sec­tor, he was recog­nised as the com­pany’s top mar­ket­ing sales­per­son na­tion­wide in 2015/16. for

Richard Leach.

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