Out-of-towners can’t compete
Waikato dairying and grazing blocks going on the market for sale are remaining under the ownership of local farmers who are far better financially resourced than their counterparts from other New Zealand provinces, according to the latest batch of rural real estate sales data.
Bayleys has sold 11 of the 15 diary and grazing farms in the region to have gone under the auctioneer’s hammer over the past two months – with Waikato farmers outbidding hopefuls from Taranaki, Hawke’s Bay, Northland, Southland, and the Bay of Plenty on every occasion.
Bayleys Waikato country manager Mark Dawe said that while ‘‘out of town’’ bidders were active on many of the farms going up for auction, they simply couldn’t foot it financially with the ‘‘local boys’’.
This has been the busiest quarterly sales period since 2007, he said.
‘‘The value being achieved for highlyproductive rural land in the Waikato is now far ahead of the rest of New Zealand. It’s like comparing the Auckland residential property market to the rest of the country – there’s us, then there’s the rest . . . with a big gap in between.
‘‘The per hectare sales value for the Waikato farms which have gone under the hammer over the past two months varies greatly from property to property – based on location, infrastructure, and type of farm. Of those factors though, location is probably biggest determination – with access to water being an important part of that,’’ he said.
‘‘Our data shows most of the successful buyers already owned farms in the Waikato, with half of the grazing blocks purchased by farmers who had sold up their bigger dairying operations but who wanted to remain both in the province and in the dairy support sector.’’
Dawe said the sales data reflected there was particularly strong buyer demand for dairying units in the $3million to $6m bracket, while support blocks were well supported in the $1m to $1.7m range.
He said that while farm values were fairly static compared to the same period last year, the number of farms being sold was up 30 per cent.
SALES STRONG: Farm sales in the Waikato are at their busiest level since 2007.