Out-of-town buy­ers keen on ru­ral lifestyle blocks

Matamata Chronicle - - Out & About - RICHARD LEACH

Two lo­cal dairy farms have sold re­cently at auc­tion.

On Fe­bru­ary 9, a 69-hectare prop­erty presently milk­ing 180 cows on the edge of Lake Ara­puni and in the same own­er­ship for 80 years sold un­der the ham­mer for $2.3 mil­lion.

On Fe­bru­ary 16, a 142-hectare farm be­tween Ti­rau and Cam­bridge, with a pro­duc­tion av­er­age over the past three years ex­ceed­ing 184,000 kilo­grams of milk­solids, also sold at auc­tion for $5.2m.

Both auc­tions were well at­tended and, on each oc­ca­sion, the prop­erty was knocked down to a lo­cal farmer.

That said, po­ten­tial pur­chasers from out of town are rea­son­ably ac­tive as peo­ple are re­al­is­ing that South Waikato is bet­ter dairy coun­try than is widely be­lieved, which can only be a good thing where val­ues are con­cerned.

Although dairy farms in our re­gion are not com­ing onto the mar­ket in great num­bers at present, those that have done are at­tract­ing buy­ers. Ven­dors of­fer­ing prop­erty have re­al­is­tic value ex­pec­ta­tions and pur­chasers are pay­ing what they per­ceive to be a fair price, mean­ing the mar­ket is work­ing ef­fec­tively.

My PGG Wright­son Real Es­tate col­leagues na­tion­wide are ob­serv­ing that in­ter­est rates and cooler sum­mer con­di­tions have dis­suaded farm­ers from test­ing the mar­ket in the past two months.

More pos­i­tive sig­nals around the pay­out could counter those fac­tors, bring­ing more prop­er­ties to the mar­ket.

We are cur­rently talk­ing to sev­eral lo­cal farm­ers con­sid­er­ing list­ing prop­erty for sale be­fore the end of the sea­son.

They would be wise to act now rather than leav­ing that un­til later, when the cur­rent seller’s mar­ket may have switched around, putting them in a less favourable po­si­tion.

Ei­ther way, a busier au­tumn looks likely.

Mean­while, the lifestyle prop­erty mar­ket is thriv­ing, with mul­ti­ple par­ties com­pet­ing for most listed prop­er­ties.

De­mand re­mains high, par­tic­u­larly from buy­ers looking to move to the district from Auck­land, Tau­ranga or Hamil­ton, re­al­is­ing that a small block in South Waikato of­fers su­pe­rior value for money com­pared to other ar­eas.

Richard Leach.

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