Rural Outlook Autumn 2019
Property Brokers Licensed REAA 2008
Welcome to Rural Outlook Autumn 2019
As we settle into autumn, the only consistent trend is rural real estate outcomes vary significantly across the country. North Island farm sales are on par with last year and selling, for the most part, at similar levels particularly where there is neighbouring interest. Well located sheep and beef finishing farms are actually selling ahead of historical levels, often with multi offers as the sector looks to capitalise on year-onyear premiums, for finished stock. South Island, particularly Canterbury, farm sales activity is back to levels not seen since immediately after GFC across all rural land categories. It would appear the general lack of sales in the
dairy market is impacting across the whole rural market and is likely to carry through 2019, including finishing land. The co-dependence on dairy grazing receipts and competition for expensive irrigated land, in addition to shifts in government policy regarding foreign ownership and the mycoplasma bovis bio security shock, have all combined to see the market pause this year. Rural real estate market confidence, particularly with pastoral farming, is mercurial. Historically it runs hot and cold, year to year, regionally, relative to seasonal weather conditions and volatility in the dairy pay-out and or schedule returns. Interestingly, both these influences have been positive this season nationwide. Growing conditions were very favourable in the lead up to Christmas and early New Year, across the country, only truly getting dry over our traditional summer period. Farm gate returns also have backed up last year’s favourable results across the board, however the rural market in many regions has stalled with surprisingly few sales.
Despite the favourable season (climate and commodities), buyer sentiment has tended to reflect farmers general sense of political unease with escalating compliance costs and regulatory hurdles. This is all part of the narrative for not proceeding with offers or placing a higher bid. When quoting genuine buyer interest this season, our team have been very wary of not talking the market down when presenting offers. Farmers always have a choice in accepting an offer or not. The role of the rural sales consultant in establishing fair market value has definitely been challenging this season. When it comes to making the deal actually happen, the rural banking sector is not immune from criticism either. The dichotomy here of course being that interest rates are at the lowest levels in living memory and debt to the rural sector has been held at $60b, despite capitalising significant farm losses in recent years in support of existing clients. Having worked through a good number of farming cycles in a professional banking capacity, dating back to the 1980’s, we are ‘in my opinion’ working through a structural shift. Our historic
Contents Waikato
Rangitikei
04 Te Aroha 05 Waerenga 06 Gordonton
11 Hunterville
South Waikato 07 Whakamaru
12 Pahiatua 13 Pahiatua 14 Eketahuna
Central Hawke’s Bay
Central Canterbury
08 Norsewood
15 Darfield 16 Ashburton
Manawatu 09 Feilding 10 Feilding
production led farming philosophy is shifting to profit. In the past, there have been strong market incentives to drive production up, capture gains via the balance sheet, and run up considerable tax losses in the profit and loss. The goal was to cycle everything back into the farm in support of production led growth underpinned by capital gain. The adjustment now is we are probably getting close to our national limits in terms of a production led approach. Driving more value from less stock is something the sheep and beef sector have been doing for a couple of decades now. Dairying is now a mature industry and is having to face the same adjustments. The good news, processors (all sectors) have invested in significant capital works and market development, as they seek to meet and anticipate future customer preferences. Not just increased production. So, with strong export receipts predicted this season and next, and interest rates at record lows, why is our rural real estate market, particularly dairy, lacking so much confidence to operate effectively (supply of farms exceeding demand)? There are a couple of forces at play, one being,
Tararua
North Otago 17 Oamaru
there are likely to be more sellers than buyers for a while yet as the benefits of scale are not as obvious as they once were. Labour shortages have been compounded by losing proven sharemilking operators, who were burnt off with recent market volatility and sky rocketing land prices. Secondly, the regulatory framework the rural banking sector is operating under is tightening significantly. First farm purchasers, or those looking to grow through scale, are struggling to demonstrate the capacity to pay back their borrowing on a 20-year table mortgage. On a conservative pay-out and medium-term view of interest rates these deals are just not happening to the level they used to. Being two thirds borrowed (plus) on high value rural land, more often than not, doesn’t meet the criteria for new business rural lending. Astute farmers will work through the trade-offs, including repaying debt and the market is likely to lift over the longer term as a result, probably in line with inflation. For those who want a strategic hedge against further land market volatility, look at your farming structures and investigate options to bring the next generation in early
lntroducing Tyson, Houdini and Roy This issue’s cover models, Tyson, Houdini and Roy are four-month-old puppies who came from a litter of 11. Their mum, May, is a Beardie and dad, Ben, is a Heading dog. While the pups are not experts in their field yet, they do bring some tricks to the farm. Tyson brings the vocals to the group, while Houdini has already developed the skills of an escape artist, as she would rather be in the paddocks than the pen. Roy is the laid-back type, and described as a “gem” by his owners. Our cover models are expected to be excellent working dogs in no time, with personality to kick!
(family or non-family). Support for the share-milking sector, particularly for larger properties, may again prove a successful model. Separating the farm operating assets and the land holdings to drive efficiency will create incentives for the next generation to step up too. In closing, this season many of the farms Property Brokers have listed and sold, sold well. The key is a dedicated rural sales consultant, a clearly communicated marketing campaign, and recognising a good offer when it is presented. We take the trust our vendors place in us very seriously; our brand is built on this goodwill. This autumn we have some excellent farms coming to the market and we expect good interest and for these to sell well!
Conrad Wilkshire, GM Rural for Property Brokers Ltd
Waikato Truly unique
AUCTION
TE AROHA 114 McCabe Road Entering through the security gates down the sealed driveway, the grandeur of this magnificent home situated on a land package of 6.23 ha (15.4 acres) greets you. From the designer kitchen to the beautiful lounge and dining areas, the quality of this home is exceptional. Effortlessly move outside to the covered entertainment area with gas fire, opening louvre roof, large outdoor kitchen, salt water heated pool and 4
WEB ID TAL02245 gym/pool house. Four bedrooms, master with ensuite and walk-in robe, separate bathroom and toilet. All this sits on flat Waihou sandy loam soil, with extensive shedding and yards. This home has just too many top quality features to list. Come and see for yourself at one of the open homes or give us a call. This property is to be sold plus GST if any.
AUCTION
VIEW 7 & 14 Apr 11.00 - 12.00pm AUCTION 12.30pm, Wed 17th Apr, 2019, (unless sold prior), Property Brokers Morrinsville Aidan Cowley
Mobile 027 486 2547 Office 07 280 5534 aidan@pb.co.nz
Michael Swney
Mobile 027 624 8214 Office 07 884 9547 michaels@pb.co.nz
Waikato Waeranga - Retiring vendor
TENDER
WAERENGA 1001 Island Block Road This 118 ha property is for sale by public tender and has been in the family since 1929. Our retiring Vendors have given us clear instructions to sell. The property has 4 titles and is offered for sale as a whole, however offers for individual titles will be considered given there is no dwelling on the property. 36 bail rotary – cup removers, large yard and a large array of buildings for calves and machinery.
WEB ID MOR02256
TENDER
Currently milking 230 cows for 100,000 VIEW By Appointment kgMS but has previously milked 270 TENDER closes Thursday 4th April, cows. Available as a going concern or 2019 at 4.00pm, (unless sold prior) suitable for support, maize or horticulture.
Peter Lissington
Mobile 027 430 8770 Office 07 280 5534 peterl@pb.co.nz
5
Waikato Peaceful oasis
GORDONTON 189A Woodlands Road Enjoy the rural tranquillity of this spacious four-bedroom plus office home. Set in 8,446m2 of mature grounds and pasture you will experience a sense of seclusion with room for a beefie, some sheep or chooks (think of the fresh eggs!). The large covered deck flows from two living areas and leads to a pool making
6
WEB ID MOL02238 the most of the home's north facing orientation.
$1,150,000
VIEW By Appointment
Inside you will find a modern interior where attention to detail combined with quality finishes complete this wonderful property.
Peter Lissington
Mobile 027 430 8770 Office 07 280 5534 peterl@pb.co.nz
South Waikato For sale under valuation
WHAKAMARU 671 Sandel Road 414 ha in two titles of 207 ha each. Sheltered by contour and bush along the western boundary with the Mangakino River. Stands of gum trees add shade and shelter to several parts of the farm. These fertile pastures, evidence backed by reliable records, are usually feeding 800 cows and 300 dairy replacements. A self contained unit, all stock grazed on farm all year round, ensuring bio
WEB ID TOR64124 security. The upgraded 48 ASHB shed includes meal feeders which have been recently installed. Dis-used 600 cow concrete pad. Production hovers round 300,000 kgMS. The property boasts five houses, three on one title, and the milking shed and two homes on the second title. Access from Henderson Road. Come and see the value, retiring Vendor has realistic expectations.
BY NEGOTIATION
VIEW By Appointment
Paul O'Sullivan
Mobile 027 496 4417 Office 07 280 8502 paulo@pb.co.nz
7
Central Hawke’s Bay Central Hawkes Bay
TENDER
NORSEWOOD 280 Rakautatahi Road 168 hectares. Flat land in the rain belt of the Takapau/Norsewood district. Approximately 130 ha flat to very easy. Improvements include reticulated water supply, older two stand wool shed, near new cattle handling complex and auxiliary farm buildings. Permanent streams and areas of native bush make this an aesthetically appealing property.
8
WEB ID WR67080 Presently utilised as a grazing and finishing block for bulls. Also suitable for cropping, trading lambs or dairy support. Our instructions from our vendors "this block is genuinely on the market".
TENDER
VIEW By Appointment TENDER closes Thursday 18th April, 2019 at 4.00pm, Property Brokers, 98 Ruataniwha Street, Waipukurau Pat Portas
Mobile 027 447 0612 Office 06 928 0521 Home 06 855 8330 patp@pb.co.nz
Bevan Pickett
Mobile 027 220 2766 Office 06 928 0520 bevanp@pb.co.nz
Manawatu Location, infrastructure and production
FEILDING 70 Stewart Road Located 5 minutes from Feilding township is this 183 ha dairy farm in six titles, with exceptional infrastructure and an additional 98 ha available to purchase. With flat to gentle rolling contour, the property has scale often sought after in the dairy sector or the scope to operate as a stand-alone fully self-contained unit, supporting a substantial milking herd and meeting all dairy support needs in the one location.
WEB ID FR65647 Improvements include a 44 bale rotary (built 2005), 350 cow feedpad, concrete silage pad, sundry buildings, underpass, open pit metal quarry and rotten rock races. A four bedroom refurbished homestead and three bedroom house complete the package. The property features versatile soil types and very good pastures with Olsen P's of up to 42. Water is supplied from 3 reliable sources and reticulated to troughs in all paddocks.
BY NEGOTIATION + GST (IF ANY)
VIEW By Appointment
Blair Cottrill
Mobile 027 354 5419 Office 06 323 1538 blair@pb.co.nz
Stuart Sutherland Mobile 027 452 1155 Office 06 323 5544 Home 06 323 7193 stuarts@pb.co.nz
9
Manawatu 98 hectares of opportunity
FEILDING WEB ID FR66212 BY NEGOTIATION + GST (IF ANY) Stewart Road Located only minutes from Feilding and the property is already consented VIEW By Appointment township and 10 minutes from for further subdivision, should you wish Palmerston North is this 98.53 ha (more to take advantage of its prime location. or less) parcel of bare land. Improvements include a hayshed, cattle With flat to gentle rolling contour, the yards, open pit metal quarry and central Blair Cottrill Mobile 027 354 5419 property is suited to a variety of uses race that gives access across the entire Office 06 323 1538 with a scale often sought after in the property. blair@pb.co.nz dairy runoff market, or could operate as Stuart Sutherland a standalone drystock or cropping unit. Currently being farmed as part of a Mobile 027 452 1155 larger dairy platform, the versatile soil Office 06 323 5544 A multitude of elevated sites pose the types and very good pastures are Home 06 323 7193 stuarts@pb.co.nz ideal spot to build your dream home serviced by excellent bore water. 10
Rangitikei Opportunity knocks
DEADLINE SALE
HUNTERVILLE 147 Mellington Road This well-developed 88 ha dairy unit, has undergone an extensive development program in recent years, including re-grassing, central races, upgraded effluent system, new water system and capital fertiliser applications.
WEB ID FR67171 The dwellings consist of a 4 bedroom main home and 3 bedroom cottage, which provide ideal accommodation for a family and support staff if required.
With all the capital development completed, take advantage of the Currently producing in excess of 1,150 existing sound milk price without the kgMS per effective ha (75 ha), through need for further capital expenditure. an 18 ASHB shed which is supported by Alternatively the soil type, contour and excellent farm buildings. location would make this an attractive property to deconvert to a support or finishing block.
DEADLINE SALE
VIEW By Appointment DEADLINE SALE closes Thursday 11th April, 2019 at 11.00am, (unless sold prior), Property Brokers Ltd, 54 Kimbolton Road, Feilding
Blair Cottrill
Mobile 027 354 5419 Office 06 323 1538 blair@pb.co.nz
Stuart Sutherland Mobile 027 452 1155 Office 06 323 5544 Home 06 323 7193 stuarts@pb.co.nz
11
Tararua Outstanding soil types
DEADLINE SALE
PAHIATUA 734 Nikau Road 144.7523 ha (more or less) located centrally between Palmerston North and Pahiatua, with some of the regions best soils that will suit any farming system. The property is currently used as a dairy support block, carrying 515 head of cattle with an additional 360 bales of baleage being made this spring/summer. Contour is 80% flat to rolling and easily cultivatable.
12
WEB ID FR67117 Improvements include a four bedroom home that has been tastefully renovated, two excellent implement/hay sheds, cattle handling facilities, all weather race, reticulated water and both electric and conventional fencing.
DEADLINE SALE
VIEW By Appointment
DEADLINE SALE closes Thursday 18th April, 2019 at 11.00am, (unless sold prior), Property Brokers Ltd 54 Kimbolton Road Feilding and Property Brokers 129 Main Street, With two titles (75 & 70 ha) that can be Pahiatua run independently of each other, this property offers a multitude of purchasing options. Call today to view.
Blair Cottrill
Mobile 027 354 5419 Office 06 323 1538 blair@pb.co.nz
Jared Brock
Mobile 027 449 5496 Office 06 376 4823 Home 06 376 6341 jared@pb.co.nz
Tararua Glencairn 338 ha
PAHIATUA 302 Kaitawa Road Located only 3km from Pahiatua and under 40 minutes drive to Palmerston North, this sheep and beef breeding/finishing property is sure to appeal. The easy to medium hill farm is extensively subdivided into 44 main paddocks with a central laneway providing ease of stock movement. Exceptional fertiliser history has resulted in 3,000 plus quality stock units being wintered on the property.
WEB ID PR66920
$2,050,000 + GST (IF ANY)
Key infrastructure includes a three stand VIEW By Appointment woolshed and covered yard facility (1,000np), cattle yards and extensive shedding. An option to purchase separately a recently refurbished three bedroom home opposite the property on 7 ha. Our vendor is motivated and selling well below RV. Call Jared or John today.
Jared Brock
Mobile 027 449 5496 Office 06 376 4823 Home 06 376 6341 jared@pb.co.nz
John Arends
Mobile 027 444 7380 Office 06 376 4364 johna@pb.co.nz
13
Tararua Peace, privacy and views to match
DEADLINE SALE
EKETAHUNA 22a Alfredton Road Not often do prestige properties like this come to the market. A 15.89 ha farmlet with a point of difference that gives it the total wow. The indoor/outdoor entertainments with panoramic views unlike any other in the area are unbeatable, and yet all within commuting range of Masterton. The easy-contour land is fenced into 10 lush paddocks and is low maintenance. The 289m2 private family friendly home was designed and custom-built. 14
WEB ID PL67097 Boasting large family living spaces, 2 downstairs bedrooms and ensuite and a further 2 bedrooms upstairs with ensuite. There is space aplenty. Not forgetting the amazing shedding that could be used for business or storage (with 3 phase power). This property is a place you can call home for many years to come. Work from home, earn an income from the land and enjoy all it has to offer.
DEADLINE SALE
VIEW By Appointment DEADLINE SALE closes Tuesday 2nd April, 2019 at 2.00pm, (unless sold prior), to be submitted to Property Brokers, 129 Main Street, Pahiatua
Patrick Baker
Mobile 027 599 8141 Office 06 376 8486 Home 06 376 6555 patrickb@pb.co.nz
Jared Brock
Mobile 027 449 5496 Office 06 376 4823 Home 06 376 6341 jared@pb.co.nz
Central Canterbury Wrifield 39 ha
DEADLINE SALE
DARFIELD 191 Struie Road Located near Hororata in Central Canterbury is this well setup 39 ha farmlet currently operated as a cattle rearing and fattening unit. Featuring a large two-story home with spacious open plan kitchen/ dining on the second floor including a walk-in pantry. The living area opens out to the well-appointed deck with fantastic alpine views, as well as flowing into a seperate lounge room and study nook.
WEB ID DFR67165 Complimented with four good sized bedrooms, master with ensuite and large walk-in wardrobe, three bathrooms, large separate laundry, excellent heating including solar and a log burner on wet-back, and internal access triple car garaging. In addition to all the main homestead has to offer, is a standalone permanent material two bedroom, two story cottage, with an internal access double garage.
DEADLINE SALE
VIEW By Appointment DEADLINE SALE closes Wednesday 24th April, 2019 at 4.00pm, (unless sold prior)
Gareth Cox
Mobile 021 250 9714 gareth@pb.co.nz
Jannetta Thomas
Mobile 021 256 6295 jannetta@pb.co.nz
15
Central Canterbury Spacious and substantial
AUCTION
ASHBURTON 2478 North Rakaia Road • Spacious and substantial homestead on 1.2 ha within easy commuting distance to Christchurch and Ashburton. • Five bedrooms and spacious living areas. • Excellent workshop and shedding.
WEB ID AL67218 • Handy to world renowned salmon river and an easy trip to Mt Hutt Ski field.
AUCTION
VIEW By Appointment AUCTION 11.00am, Sat 13th Apr, 2019, (unless sold prior)
• A property with potential.
Rodger Letham
Mobile 0274 333 436 Office 03 307 9192 Home 03 308 3307 rodger@pb.co.nz
16
North Otago Tokarahi Downs
DEADLINE SALE
OAMARU 416 Tokarahi-Tapui Road 251.4803 ha in five titles of easy rolling contour with some steeper faces. Sheep and beef breeding, finishing or cropping property. Kauru Silt Loam and Hill Soils with 8.5 units from Tokarahi Water Supply. Two houses - main house 1960's, four bedroom brick home with basement garage, woodburner on wetback and HRV system. Second house four bedroom roughcast home with woodburner. Numerous farm buildings including two 2 stand woolsheds with yards, an assortment of 17
WEB ID OMR72456 sheds including 6x12m, 14 x 14m and 8x12m. Good cattle yards with Te Pari weighing platform and head bail. Mature Pine woodlot approximately 1/2 a ha. Various established shelterbelts. Soil tests available. Situated approximately 40 km from Oamaru. Different purchasing options considered.
DEADLINE SALE
VIEW By Appointment DEADLINE SALE closes Thursday 11th April, 2019 at 4.00pm, (unless sold prior)
Merv Dalziel
Mobile 027 439 5823 merv@pb.co.nz
Upper North Island Team
Peter Lissington Regional Sales Manager Morrinsville 027 430 8770
Aidan Cowley Morrinsville 027 486 2547
Stuart Stobie Morrinsville 021 776 173
Katie Walker Taumarunui 027 757 7477
Doug Wakelin Te Kuiti 027 321 1343
Hugh Williams Te Kuiti 021 878 782
Paul O’Sullivan Tokoroa 027 496 4417
Gary Scott Te Kuiti 027 484 4933
aidan@pb.co.nz
stuart.stobie@pb.co.nz
katiew@pb.co.nz
Greg Kellick Taupo 027 619 3051
Michael Swney Te Aroha 027 624 8214
greg.kellick@pb.co.nz
michaels@pb.co.nz
peterl@pb.co.nz
dougw@pb.co.nz
hugh@pb.co.nz
paulo@pb.co.nz
garys@pb.co.nz
Lower North Island Team
John Arends Regional Sales Manager Pahiatua 027 444 7380
Jim Crispin Dannevirke 027 717 8862
Dave Frith Dannevirke 027 246 8184
Blair Cottrill Feilding 027 354 5419
Stuart Sutherland Feilding 027 452 1155
Paul Joblin Masterton 027 443 3756
Stephen Penn Masterton 027 448 1221
Jared Brock Pahiatua 027 449 5496
Lloyd Alabaster Taihape 021 047 7389
Bevan Pickett Waipukurau 027 220 2766
Pat Portas Waipukurau 027 447 0612
Carl Van der Meer Wairoa 027 493 5525
jimc@pb.co.nz
davidf@pb.co.nz
blair@pb.co.nz
stuarts@pb.co.nz
paulj@pb.co.nz
johna@pb.co.nz
stevep@pb.co.nz
Richard White Whanganui 027 442 6171
richardw@pb.co.nz
jared@pb.co.nz
lloyd.alabaster@pb.co.nz
bevanp@pb.co.nz
patp@pb.co.nz
carlv@pb.co.nz
South Island Team
Mark Lemon Regional Sales Manager Ashburton 027 339 6665
Paul Cunneen Ashburton 027 432 3382
Greg Jopson Ashburton 027 447 4382
Chris Murdoch Ashburton 027 434 2545
Toby O’Donnell Ashburton 027 322 6256
Rodger Letham Ashburton 0274 333 436
Merv Dalziel Oamaru 027 439 5823
Gareth Cox Darfield 021 250 9714
Matt Collier Darfield 027 205 6626
Michael Robb Rolleston 027 436 7106
Michael Richardson Timaru 027 228 7027
Craig Smith Timaru 022 464 2243
paulc@pb.co.nz
gregj@pb.co.nz
chris@pb.co.nz
toby@pb.co.nz
rodger@pb.co.nz
marklemon@pb.co.nz
merv@pb.co.nz
gareth@pb.co.nz
mattc@pb.co.nz
michael.robb@pb.co.nz
Willie McLaughlin West Coast 021 0267 4385 williem@bp.co.nz
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Property Brokers Licensed REAA 2008
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