Market commentary

Richard O’sullivan, director of

Colliers Canterbury describes the rural real estate market right now as “well balanced” but admits there has been some conservatism around the election outcome, particularly from buyers in the older age bracket who are concerned over uncertainty around future regulatory requirements. Younger buyers, he says, tend to be less concerned and are prepared to work in any regulatory environment they find themselves in.

He says there is a good depth of buyers in the under $4 million bracket while interest rates are having a stronger bearing on large capital purchases of $10m and over.

With the milk price forecast increasing O’sullivan says there’s a sense of the tide turning and a more positive landscape on the horizon.

People looking to buy now will likely settle next June and O’sullivan says they are looking forward to then and can see that interest rates have most likely peaked, while inflation and on farm costs might be getting back under control.

For buyers in the dairy sector the biggest consideration when looking at properties is regulatory requirements what the farm might need to meet future compliance rules, what this will entail, and cost.

Other considerations are climate and soil and likely capital expenditure on infrastructure repairs and maintenance.

O’sullivan says future land use is also a big consideration. With farming seen as a long term investment buyers are looking closely at what the land could be used for in coming years, be that cropping, sheep and beef or other potential options.