Auc­tion re­sults show will­ing mar­ket

Matamata Chronicle - - Out & About - RICHARD LEACH

Prop­erty mar­ket in­ten­sity in­creased with the re­sults of lo­cal auc­tions in late Novem­ber.

A 179 hectare Tirau dairy farm sold un­der the ham­mer for $52,000 per hectare, a 79 hectare Pu­taruru dry­s­tock block went for $30,300 per hectare, and a three hectare Tirau lifestyle prop­erty sold for $900,000.

Each auc­tion was well at­tended, with mul­ti­ple bid­ders, keen com­pe­ti­tion and sat­is­fied ven­dors.

An­other auc­tion next week, of a 57 hectare Pu­taruru dairy farm, should con­tinue the trend.

This prop­erty has mul­ti­ple op­tions and, whether it is pur­chased to con­tinue as a milk­ing plat­form or for some other land use, will be a talk­ing point for lo­cal farm­ers.

Over the past few weeks, we have fielded plenty of calls from es­tab­lished farm­ers seek­ing to pur­chase ru­ral prop­erty to in­crease their hold­ings and their farm­ing ca­pac­ity.

These buy­ers and the un­der­bid­ders who missed out on the re­cent auc­tions in­di­cate de­mand re­mains un­met. What is likely to hap­pen in sum­mer and au­tumn should en­cour­age them.

Over the past few months, a sub­stan­tial num­ber of ten­ta­tive sell­ers have held back to see what the mar­ket will do.

Even though dairy sig­nals are pos­i­tive, many are not yet con­vinced that the cy­cle has passed its low­est point.

These are mostly farm­ers who have held off on re­tire­ment through tough times.

They are now look­ing at the mar­ket with more con­fi­dence, be­liev­ing that if they do list their farm, they will achieve a sale and they will be able to exit the in­dus­try.

A sig­nif­i­cant num­ber of dairy prop­er­ties should there­fore come to the mar­ket in late sum­mer and au­tumn, likely to be met by steady buyer in­ter­est.

One other fac­tor hold­ing farm­ers back is the new clean streams reg­u­la­tions.

These are com­plex and cast un­cer­tainty on a farm’s ca­pac­ity to change land use.

How­ever, with guid­ance, farm­ers are be­com­ing more con­fi­dent of the im­pli­ca­tions of the reg­u­la­tions.

Along with my PGG Wright­son Real Es­tate col­leagues else­where in the coun­try, we are help­ing buy­ers to un­der­stand what they will be able to do when they pur- chase a farm un­der en­vi­ron­men­tal rules.

That knowl­edge gives them the power to de­cide to buy. the new

SUP­PLIED

The auc­tion of this 57 hectare Pu­taruru dairy farm next week will be closely watched by lo­cal farm­ers.

Newspapers in English

Newspapers from New Zealand

© PressReader. All rights reserved.