Out-of-town buyers keen on rural lifestyle blocks
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.