36 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 6, 2018
Real Estate
DOWN: Sales of arable and greazing farms have fallen 25% and 28% respecitvely.
Signs good for spring market Alan Williams alan.williams@globalhq.co.nz
T
OUGHER rules on overseas investment in farms look to be having an impact on sales while the industry waits to see how Mycoplasma bovis affects the market in the spring. Information being received by the Real Estate Institute is that overseas buyers are becoming frustrated by the delays and resulting expense in the Overseas Investment Office (OIO) consent process, the institute’s rural spokesman Brian Peacocke said. “The OIO appears to be looking for reasons to say no to an application rather than reasons to say yes,” he said. Peacocke’s business, Pastoral Realty group, has been involved in
one of the applications, where the investor withdrew. “They pulled the pin. It was just too hard.” Overseas buyers were never a large part of the New Zealand rural real estate sector but were significant in buying bigger blocks. “Our experience in the South Island is that they are prepared to pay more and there may be some frustration among vendors not able to get those prices.” The M bovis virus is also affecting farm sales, with the latest institute report mentioning it as an issue being watched closely in Northland, Waikato, Hawke’s Bay, Taranaki, Wairarapa/Wellington, Otago and Southland. In the important Waikato dairying region, Peacocke, who is based there, expects increased listings in the spring but said
there will be much discussion on biosecurity measures to cope with the risk of the virus. The Ministry for Primary Industries is bulk-testing milk supply in a process that might take the next three or four months to complete through to conclusive results. If an increase in the rate is confirmed that will slow down the rate of sales and the doubt and speculation is already resulting in a lot of work for the legal profession in forming clauses in the documentation to protect both buyers and sellers. Peacocke was speaking after publication of the institute’s commentary for June, which showed a fourth successive year of quieter activity in the three-month period covered. The 2015 numbers were 479, then 472 in 2016, 459, last year,
REBOUND: Dairy farmers had dropped out of the dairy support land market but agents expect it might pick up again as they set up for self-contained operations in the Mycoplasma bovis era.
and a drop to 427 in the latest three-month period. Dairy farm sales have eased back a shade over that time and there has been a big drop in grazing property sales. “Dairy farmers have dropped out of the dairy-support market in that time but we think that might pick up again now.” This is a result of the M bovis situation, with reports from agencies in Taranaki, Wairarapa/ Wellington, Otago and Southland recording renewed interest as farmers seek to be self-contained in their off-season grazing management. The report also shows a 17% drop in overall farm sales in the year to June, to 1480, compared to the previous year. The biggest falls in sales were in the arable sector, down 25%, and grazing farms, down 28%. Some of the fall came down to availability of properties, Peacocke said. Nearly all product groups are achieving good prices with wool being about the only exception but being more than offset by high lamb and mutton returns. “Farmers enjoying the good incomes might see that as a good reason to hold on and as we get into spring some might also be asking if that might be a good time to sell.” In Waikato the poor late winterspring period last year wasn’t an easy time to sell farms and the improved conditions coupled with some difficulties getting good staff in some areas might make the decision easier this year. “Signals we’re seeing suggest there will be some moves made after calving is finished, though we did have similar signals last year.” Nationally, there is very good demand for sheep and beef properties and that is evident in the good prices achieved in Otago and also Canterbury, where there
are very few properties available. Demand is also strong on the east coast of the North Island though pricing is not as strong there. Good finishing land is scarce to buy because of the large dairy take-up in previous years.
Dairy farmers have dropped out of the dairy-support market in that time but we think that might pick up again now. Brian Peacocke Real Estate Institute “We had thought that some of the second and third tier dairying land might come back to dairy support or running heifers or for finishing but we’re not seeing that yet.” One move being noticed is forestry interests active buying into sheep and beef country in Wairarapa and Hawke’s Bay. Peacocke said the horticulture market continues to amaze, driven by the demand for kiwifruit orchards, especially those with the Gold variety. Activity slowed over winter while vines were being pruned and tied down but demand is expected to resume unabated in the spring. The increase in Gold orchard values is also dragging up green fruit orchard values. Demand for horticulture land is also strong in Northland for kiwifruit with new Gold licences issued and avocado development. There are restricted areas of quality finishing or dairy land available for kiwifruit.
FARMERS WEEKLY – August 6, 2018
Real Estate
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Real Estate
Canterbury and Otago regions
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FARMERS WEEKLY – August 6, 2018
WALCHA DAIRY, NSW 626ha opportunity awaits
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Roderick Wyllie 0427 377 513 Roderick@protam.com.au
Stuart Watts
0439 661 655 stuart @protam.com.au
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• Have you ever wanted to go fishing in between milking? Well this is your chance to do just that. • This 525 acre property located in the central Horowhenua has all the features that you and your family would love. • A good mix of flat to rolling contour that has the ability to winter cows. • Modern herringbone dairy along and nice five bedroom family home. • With growth in this area who knows how great this farm could be as an investment in the future. • Call Les to inspect this property.
Sallan Realty
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FARMERS WEEKLY – August 6, 2018
Real Estate
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TR ANS F O R M I N G R E A L E STAT E I NTO REAL ADVANTAG E FOR SALE FERNHILL FOREST LAND HILLSIDE ROAD, PORIRUA
FORESTRY LAND 37KM TO CENTREPORT For the astute purchaser, the land under Fernhill Forest provides a unique opportunity to acquire a significant land holding only 37km from CentrePort. The lower slopes already have roading and skids sites in place, with 82ha replanted in 2014. A Cutting Right is being retained across the balance of the crop through to 2022 following which the successful purchaser will assume ownership of substantial additional roading and infrastructure. The underlying land potential and proximity to Wellington helps underpin the investment attributes. + + + + +
381.52ha freehold land 37km to CentrePort First and second rotation forest land 282.3ha productive area 82ha in 4 year old Radiata
FOR SALE $1.6m (plus GST if any)
CONTACT US JEREMY KEATING
021 461 210 jeremy.keating@cbre.co.nz
WYATT JOHNSTON
027 815 1303 wyatt.johnston@cbre.co.nz
w w w.cbre.co.nz/213641Q28 CBRE (Agency) Limited, Licensed Real Estate Agent (REAA 2008)
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