Damp spring de­lays farm sell­ing sea­son

Hauraki Herald - - RURAL - GER­ALD PIDDOCK

A tough spring has put a damp­ener so far on the ru­ral real es­tate mar­ket de­spite a surge in dairy farm list­ings in Waikato.

In­dus­try ex­perts blamed the cold and wet spring for a de­layed start to the spring sell­ing sea­son when mar­ket ac­tiv­ity usu­ally lifted.

Sales had been slow and na­tion­ally list­ings were down, PGG Wright­son Real Es­tate gen­eral man­ager Peter New­bold said.

A quiet win­ter sell­ing pe­riod, tighter lend­ing cri­te­ria from banks, a new govern­ment that had sig­nalled changes to the Over­seas In­vest­ment Act and ter­ri­ble weather in the North Is­land which made show­cas­ing any farms on the mar­ket ex­tremely chal­leng­ing.

They had all put un­cer­tainty in the mar­ket, de­spite how well the pri­mary sec­tor was per­form­ing. There was also a level of ad­just­ment oc­cur­ring be­tween buy­ers and ven­dors over where val­ues sat in the dairy sec­tor, he said.

‘‘The chal­lenge will be when they come to mar­ket is where peo­ple see the value. The one thing that is still clear is that qual­ity prop­er­ties al­ways sell.’’

List­ings for the rest of the coun­try were at nor­mal lev­els or be­low, he said.

The ex­cep­tion was Waikato. Among rea­sons why ven­dors chose to sell, re­tire­ment was a com­mon theme.

‘‘They have put off putting the suc­ces­sion process into play and they have to get on with their lives [and sell]. This was al­ways go­ing to hap­pen be­cause a lot of ru­ral New Zealand is an older de­mo­graphic.’’

He said there were signs that the mar­ket was slowly be­gin­ning to pick up. Good farms were still sell­ing strongly and the sale of Ol­rig Sta­tion in Hawke’s Bay, which was sold at auc­tion for $10.170 mil­lion, had gen­er­ated in­ter­est.

The lat­est farm sale statis­tics from the Real Es­tate In­sti­tute of New Zealand are ex­pected to be re­leased in the next few days and New­bold pre­dicted they would con­firm the slow start to spring.

Ear­lier this month, REINZ ru­ral spokesman Brian Pea­cocke said there was a more op­ti­mistic out­look for the dairy pay­out after two tough sea­sons and that made sell­ing a more at­trac­tive prospect.


There has been a lift in dairy farms for sale in Waikato, how­ever ac­tiv­ity is much qui­eter through­out the rest of New Zealand.

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