Farm sales far from fol­low­ing usual trend

South Waikato News - - PROPERTY - By CHRIS GARDNER

Two real es­tate agents say it would take nearly six years to sell the Waikato District’s farm in­ven­tory of 296 farms if sales con­tin­ued at their cur­rent rate.

In their Ru­ral Agent blog Stu­art Gud­sell and Sharon James, real es­tate agents at the Te Awa­mutu branch of PGG Wright­son, said there were 134 dairy farms, 128 graz­ing farms, 19 fin­ish­ing farms, eight crop­ping farms, three hor­ti­cul­tural blocks, two spe­cial­ist live­stock farms and two forestry blocks on the mar­ket.

Mr Gud­sell, who has been in real es­tate for 12 years, told the Waikato Times the mar­ket was at the low­est point he had ever seen it as far as vol­ume was concerned.

‘‘It ain’t flash; the statis­tics don’t lie,’’ he said.

Real Es­tate In­sti­tute of New Zealand fig­ures, quoted by the pair show the Waipa was the only district in the Waikato to sell any farms in Au­gust with two sales. Septem­ber saw two farm sales in the Waipa, one in the Mata­mata-Pi­ako district and four in the Waikato.

In Oc­to­ber one farm sold in each of the Mata­mata-Pi­ako, Otoro­hanga, Taupo and Waipa dis­tricts.

Prices ranged from just un­der $1mil­lion to just over $3mil­lion.

In the July to Septem­ber quar­ter, 100 life­style blocks sold in the re­gion but 1296 re­main on the mar­ket, which the agents es­ti­mate would take just over three years and three months to sell at the cur­rent rate.

They said if no more ru­ral prop­er­ties were listed in the Waikato it would take 299 weeks to sell ev­ery listed farm and 170 weeks to sell ev­ery listed life­style block.

Life­style block sales in the Waikato have again de­creased when com­pared with a month ear­lier.

To­tal life­style block sales for Oc­to­ber were 23, com­pared to 33 in Septem­ber and 44 in Au­gust.

‘‘Need­less to say this is not the di­rec­tion the mar­ket tra­di­tion­ally tracks as we progress through spring to sum­mer,’’ the pair said in their blog.

‘‘Cau­tious op­ti­mism is be­ing felt in two of the Waikato’s dis­tricts; Otoro­hanga has achieved its first farm sale (fin­ish­ing) in five months and Taupo (graz­ing) in six.

How­ever with only four farm sales in the en­tire Waikato re­gion for the month of Oc­to­ber this op­ti­mism could of course prove to be pre­ma­ture.

‘‘ The other two sales were in Mata­mata-Pi­ako (dairy) and Waipa (graz­ing).’’

Dairy farm­ers, while promised a good milk cheque with the lift in milk com­mod­ity prices, were still re­tir­ing debt fol­low­ing a cou­ple of bad years and suf­fer­ing from fall­out from the global re­ces­sion as were the typ­i­cal buy­ers of life­style blocks who didn’t have enough con­fi­dence or cash to in­vest. Mr Gud­sell said there would al­ways be a few ‘‘over the fence’’ farm sales that didn’t make it into the Real Es­tate In­sti­tute’s fig­ures but the per­cent­age was very low.

to sell.

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