Auction results show willing market
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
The auction of this 57 hectare Putaruru dairy farm next week will be closely watched by local farmers.