Rural Outlook Spring 2019
Property Brokers Licensed REAA 2008
Welcome to Rural Outlook Spring 2019
Fortune favours those who grasp the new realities Rural property markets are adjusting to tough new realities in New Zealand’s approach to environmental management and shifts in the agri-banking sector regulation. Such adjustment is never easy, but, of course, it’s hardly without precedent. And, for property vendors and buyers who take the time to really understand all of today’s realities, there are plenty of upsides. Fortune will favour those who are adjusting to the market’s “new normal” sooner rather than later. Firstly, changes to environmental management certainly do represent a tough new reality for land-based industries. Inclusion of agriculture in the emissions trading scheme, reduction targets that include methane and forest planting incentives – plenty for farmers, growers and others to get their heads around. In September, the Government also presented its long-awaited plan for tightening rules to protect and improve
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freshwater quality. Every farm will now require a land and environment plan, and new limits on nitrogen loss will curb production potential from some land uses in some areas. It spells more complexity and cost relative to traditional dairying and livestock farming practices, particularly in the Waikato and Canterbury. But those who adjust first will be recognising that environmental management and sustainability are now the way of the world. New Zealand must meet new global market expectations of emissions reduction and safe, natural food and fibre production. Like it or not, expectations on the users of land and natural resources are changing fast. There are, indeed, issues that will need resolution around how quickly practices change and how much farmers need assistance in the change process. For property vendors and buyers, “the environment” is something to be factored into every decision, maybe requiring higher investment in new technologies or reconsideration of how parts of the farm can be best utilised. There are undoubtedly costs and complications but this is a new reality full of productive (and profitable) potential
as well. Diversification has long been a theme in New Zealand’s primary sector – here is another set of reasons for looking at new crops and new categories of livestock, primarily where consumers will provide additional rewards to the producer for their environmental stewardship. Integrated farming systems are more likely to present in the future. It is worthwhile acknowledging that the nation’s best practice farmers and growers are often already “there” on this new reality. Second, the banking sector. There’s no escaping the fact that rural debt levels have surged over many years. The Reserve Bank puts the total now at $62 billion, suggesting a 15-fold increase from around $4 billion in 1990. It does reflect massive investment in building the productive capacity of land-based industries for the good of this nation. Dairying is the obvious stand-out in terms of growth in NZ export receipts; however, it also now accounts for twothirds of total rural debt. But the growth also reflects the historic ready availability of loan finance from a banking sector deregulated in the 1980s and increasingly swept into a global market where credit was in seemingly endless
Contents Waikato
Tararua
06 Waihou
18 Dannevirke 19 Pahiatua 20 Pahiatua 21 Pongaroa
South Waikato 07 Lichfield 08 Whakamaru 09 Whakamaru
Central Canterbury
Front Cover - Introducing May
King Country
23 Sheffield 24 Hororata
10 Mahoenui 11 Taumarunui
Mid Canterbury
May is a 6-year-old Beardie Cross Huntaway who works well with all stock but is better on the cattle. She loves the hills, but her first love is jumping in the yards and barking. She spends her spare time hanging out with her mates (the other farm dogs), and her puppies, as seen on the front cover of our Autumn edition.
Whanganui 13 Whanganui 14 Whanganui
Central Hawke’s Bay
25 Carew
North Otago 26 Oamaru 26 Dunback
15 Ruhataniwha 16 Elsthorpe
West Coast
supply. It’s fair to say that Kiwi farmers, growers and other rural investors have had relatively easy access to capital for all manner of uses over most of the past three decades.
earnings – and less on expectations of capital gain. And yes, we should expect to see a market correction in districts that have yet to make many sales, or otherwise, continue to see not many sales.
The new reality is a reversal of that – a reversal partly because of farm sector indebtedness but more importantly, because the Reserve Bank has moved to tighten capital requirements on commercial banks operating in New Zealand and limit their capacity to fund domestic lending from offshore. Many central banks are putting similar moves on banks across the world – all part of an effort to stabilise and de-risk global capital markets post the financial crisis of 2008-09. In our property market, we can expect banks to tighten their lending criteria, to sharpen the way they examine the business case behind individual farm purchases or expansions, and to focus more on principal repayment schedules. None of that is negative per se for vendors or buyers. It just means that they, themselves, have to look more closely at the fundamental merits of every debt-funded business proposal and investment. In the new reality of bank borrowing, land and productive assets will get valued far more for their future
28 Hokitika
Of course, today’s reality is not that far from yesterdays. Far from it! The most fundamental thing about New Zealand food and fibre production in 2019 is that it looks very positive – the world wants our products because they are so good and because they are fundamental to life on the planet. Even as global economic growth slows, the outlook for returns to dairying, red meat production, horticulture and viticulture is strong. Our story remains to be about China’s increase in prosperity and the wealth of American and European consumers. Never forget that our dairy industry has, overall, been an enormous success over three decades.
farms, orchards and vineyards. The new realities require some tough adjustments for some already on the land or contemplating investment. So did the immense challenges of diversification after Britain joined the Common Market in 1973. So did deregulation from 1986 onward. For vendors and buyers in our rural property market, the view is the long view – and a sound answer to the question: What is the best use for my capital and my energies over the years ahead given the realities, and the “new normal” in farming and all other parts of the New Zealand economy? As we go into the 2019-20 season, the market looks increasingly buoyant in those regions where people are taking precisely that approach, the Tararua and Southland point the way, re-establishing their rural land market by working through value adjustments last season.
In the latest year to June, $17.6 billion of dairy receipts were 39% of the nation’s total primary sector export income. We are a growing share of global dairy trade, while Australia goes backwards in that regard.
A long-standing dairy investor noted the other day, “Our business has never worked to industry averages as our success benchmark or reason to invest”.
So, the reality is that New Zealand will always need excellent, profitable
Conrad Wilkshire, GM Rural for Property Brokers Ltd
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Results that speak for themselves
1220 Frasers Road Tinwald
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Dairy 130 ha
Property Brokers would like to take this opportunity to acknowledge all our vendors who entrusted us with the responsibility to market their rural properties last season. In addition we’ve been delighted with the success we’ve had in the $5 - $10m + value range up and down the country as highlighted below.
Lauriston Dairy 2264 Thompsons Track Ashburton
Dairy 225 ha
333 Glenavy Tawai Road Glenavy
Dairy 241 ha
Cnr Alexandra/McLaren Road Te Aroha Dairy 90 ha
Winchmore Research Station 670 Dromore Road Methven Sheep & Beef 246 ha
Tuscan Hills 1501 Pahiatua-Pongaroa Road Pahiatua Sheep & Beef 1186 ha
Awapiri 2567-2811 Cheltenham Hunterville Road Cheltenham Sheep & Beef 273 ha
Otiwhiti Station 4744 Turakina Valley Road Hunterville Sheep & Beef 1683 ha
Maranoa 256 Takapau Ormondville Road Central Hawkes Bay Deer/Finishing 305 ha
Gisborne Big growth region for rural investors and Property Brokers
Rural property in the Gisborne region is running strong, and Property Brokers is delighted to welcome Quay Real Estate (Previously trading as LJ Hooker and Colliers Real Estate) into the Property Brokers family. As the market leader in handling Gisborne’s horticultural properties, the Property Brokers team has immense knowledge and experience in viticulture and pastoral farming. “There’s strong growth in kiwifruit and apples, some of this spilling over from the Bay of Plenty and most of it based on a solid understanding of global market demand for New Zealand produce, now and into the future,” says Branch Manager, George Searle. “The average price on good blocks of land for horticulture, with water available, has more than doubled in the past 18 months and there’s continued good inquiry.” “Sheep and beef properties are also being valued up as rural investors recognise the positive outlook for New Zealand red meat and the current historically high levels of return”, says George.
Property sales achieved by his team so far in 2019 include 1220-hectare Puriri Station, in the Whangara area, for $11 million. George says Gisborne’s hill country, including some traditionally used for sheep and beef, is also in strong demand for forestry for both timber production and carbon credits. On the other hand, the regional economy has virtually no exposure to dairying with its associated uncertainties over global price trends and environmental regulation. Gisborne is also favoured for its easilyaccessed port and the urban growth potential of the city. George and his 25-member team have joined the Property Brokers network from Quay Real Estate which Philip Searle – father of George, and a prominent figure in Gisborne real estate markets, formed in
Contact Property Brokers Gisborne at 06 869 0091 Branch Manager George Searle on mobile 021 307 022 1996. Philip continues in the commercial and industrial side of the business. The now-Property Brokers team moved into a new building in August; this developed on their traditional Reads Quay site in the city. George, a Massey University graduate in agriculture, forestry and marketing, joined the business in 2005 after some years travelling and working in New Zealand’s forest products sector. Not only is George passionate about the excellent prospects for his home region’s primary producers, but also the growth of Gisborne as a city offering excellent work and lifestyle opportunities. “We do have a real housing shortage with a need for more land to be opened up for urban development, and needless-to-say our residential and commercial business is ready to support growth in those markets as well.” 5
Waikato Great first farm - 53 ha
OPEN DAY
WAIHOU 57 AB Thomas Road Located conveniently just 15 km north east of Morrinsville and 8 km south west of Te Aroha via SH 26. Fenced into 42 paddocks with 2 - 3 wire electric internals and post & batten boundaries. Contour is predominantly flat with some being gentle rolling. Soil type is Waihou Sandy Loam. Infrastructure includes a 14 ASHB dairy with in-shed feed system, 7-bay hay barn, 5-bay half round shed, 2-bay gable shed and a calf shed. Water is derived from a bore which is pressurised around the farm via 6
WEB ID TAR02431 a tank. Production of 58,000 kgMS last season from 137 Ayreshire cows. The two dwellings consist of a three bedroom Lockwood main dwelling complete with sleepout, pool room and a salt water swimming pool and a secondary three bedroom weatherboard home which is currently rented. The highly regarded soil type, excellent pastures with Olsen P's of up to 48 and the extra income derived from the secondary dwelling make this farm an excellent proposition.
AUCTION
VIEW 17 & 24 & 31 Oct 12.00 1.00pm AUCTION 11.00am, Thu 14th Nov, 2019, (unless sold prior), Waihou Community Hall Second Avenue, Waihou
Michael Swney
Mobile 027 624 8214 Office 07 884 9547 michaels@pb.co.nz
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Doug Wakelin
Mobile 027 321 1343 dougw@pb.co.nz
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South Waikato Retiring vendors
WEB ID MOC02391
LICHFIELD 2881 State Highway 1 Sheepskin Plus Landmark business ready for new owner to reap the rewards it offers. Main road location at Litchfield with off road parking bay. Here is your opportunity to own this great business. Ideal for a customer service orientated owner operator. • 190m2 of retail space in prominent location
$665,000 + GST (IF ANY)
VIEW By Appointment • Good stock range • Easy operation • Growing turnover, good margins • Good customer base, local and tourist • Potential for growth • Good owners / managers 3 bed accommodation • Asking price $665,000 + Stock + GST (if any) going concern
Charles Digby
Mobile 027 669 1511 Office 07 889 7176 charlesd@pb.co.nz
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South Waikato What a cracker! - 482 ha
TENDER
WHAKAMARU 1957 State Highway 32 A 482 ha property, comprising 367 ha of effective dairy pasture, the balance in Eucalypt forest and native plantings along the wetlands. Past three seasons milking 950 Jersey cows, with best production of 330,000 kgMS. This season there are 900 Friesians targeting 340,000 kgMS. Developed to a high standard, the 60 bail rotary is equipped with all the computerised technology needed for todays hi spec world. A full range of 8
WEB ID TOR70313 support buildings adds to the easy management. The three modern brick dwellings range from a four bedroom, two bathroom managers house to a three bedroom two bathroom home and a three bedroom single staffers superior dwelling, all proven to attract good staff. Offered for sale as a going concern, with existing staff and management contract in place. Or land & buildings, by negotiation.
TENDER
VIEW By Appointment TENDER closes Thursday 7th November, 2019 at 4.00pm, (unless sold prior), 37 Swanston Street, Tokoroa Paul O'Sullivan
Mobile 027 496 4417 Office 07 280 8502 paulo@pb.co.nz
Doug Wakelin
Mobile 027 321 1343 dougw@pb.co.nz
South Waikato Mangakino - 503 ha
TENDER
WHAKAMARU 1790 State Highway 32 This is one of two modern commercial scale dairy farms in South Waikato district. Mangakino is a 503.5 ha dairy property. Also available is Twin Lakes 482.8 ha. These properties are separated by State Highway 32, each having access to the waters of a picturesque hydro lake. Each farm has been developed to the highest standard, improvements are second to none. Information Memorandum available upon request.
WEB ID TOR70312 Astute investors will recognise the opportunity presented here to capitalise on prevailing market conditions. Each farm has a 60 bail rotary dairy shed with a full complement of support buildings and four modern brick houses, to attract and retain good staff. These properties are offered for sale going concern, under existing management, by recognised industry leaders.
TENDER
VIEW By Appointment TENDER closes Thursday 7th November, 2019 at 4.00pm, (unless sold prior), 37 Swanston Street, Tokoroa Paul O'Sullivan
Mobile 027 496 4417 Office 07 280 8502 paulo@pb.co.nz
Doug Wakelin
Mobile 027 321 1343 dougw@pb.co.nz
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King Country Breeding & finishing - 564 ha
MAHOENUI 12 State Highway 3 564 ha (STS) of which 440 ha is effective with pockets of grazable area throughout the remaining 127 ha of native bush. An even balance of contour from flat and easy through to medium hill with the odd steep sidling. Soil type is Maeroa Ash over Limestone. Regular fertiliser history. Reticulated water derived from two springs with an additional rain water and bore supply.
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WEB ID TER64193 Currently run as sheep breeding / finishing and cattle finishing unit. Structural improvements include a substantial five bedroom dwelling, four and two stand woolsheds, three haybarns, workshop, implement shed, fertiliser bin and extensive sheep and cattle yards and load-out facilities. An economic breeding and finishing unit in a highly regarded farming district.
$4,500,000 + GST (IF ANY)
VIEW By Appointment
Doug Wakelin
Mobile 027 321 1343 dougw@pb.co.nz
Hugh Williams
Mobile 021 878782 Office 07 8788266 hugh@pb.co.nz
King Country Top of the town - 7 ha
TAUMARUNUI 25 Marsack Road Located up a sweeping driveway is a very luxurious and grand home. This five bedroom and three bathroom property has many entertaining areas over its impressive 410m2. Featuring a large family lounge, modern kitchen conservatory and a fully self-contained unit. The peaceful setting is accentuated by maturing gardens, an extensive lawn area and sweeping vistas of the town below and the Whanganui River. It also
WEB ID TUL70601 offers seven ha of easy grazing land that is well fenced and supported with two sheds and troughed water. It is currently been run as 'The Glade Accommodation' and this could continue for the new owners or it could be returned to wonderful family home. With development potential the property will provide a new owner with an outstanding opportunity to secure a unique lifestyle in a stylish environment.
BUYERS $1,200,000+
VIEW By Appointment
5 Katie Walker
Mobile 027 757 7477 Office 07 895 7123 Home 07 895 7112 katiew@pb.co.nz
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Small town service, big city results Out of 921 registered real estate companies throughout New Zealand, Property Brokers is incredibly proud to have been awarded two top office awards at the Real Estate Institute of New Zealand 2019 Awards.
We think provincial New Zealand is the best place on earth. We love the regions, the people and the communities we serve. I guess that’s why we get recognition when we go up against big city firms. If you’d like to experience award winning service call us on 0800 367 5263
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pb.co.nz Property Brokers Ltd Licensed REAA 2008
Whanganui Grazing, forestry, bees or kiwifruit - 183 ha
TENDER
WHANGANUI 468A Kauangaroa Road Not often does a property with so many options and a great location come to the market. Currently used as a runoff to the milking platform at 788 No 2 Line, the option to purchase both should be appealing. The past two seasons winter stocking figures have included 330 dairy cows, 72 R2Y heifers, 89 R1Y heifers, 112 mixed age beef cross cattle and 18 bulls. Supplements grown include 200 tonnes maize, 100 tonnes grass silage and 44 bales of baleage. The options include
WEB ID WGR70369 41 ha of quality river flats, free draining river silt soils suitable for grazing or horticulture, kiwifruit have been grown in the past but these soils would lend themselves to many options, an all-weather road gives access to these flats all year round. The balance (142 ha) is medium to steep hills suitable for grazing, Manuka or Pine plantings. With an all-weather metal road running through the middle of the farm, the basis of any roading is in place for forestry or honey production.
TENDER
VIEW By Appointment TENDER closes Thursday 31st October, 2019 at 4.00pm, at Property Brokers Ltd, 51 Taupo Quay, Whanganui
Mark Lourie
Mobile 027 273 3458 Office 06 281 3714 Home 06 342 7734 markl@pb.co.nz
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Whanganui Dairy farm with subdivision options - 132 ha
TENDER
WHANGANUI 788 No 2 Line Not often does an opportunity like this come to market so close to town. This 132 ha (more or less) dairy farm is situated just 5 km from Whanganui in the highly regarded Fordell farming district, it boasts a sound four bedroom home with a combination of beautiful rolling hills and picturesque valleys, not to mention flat working platforms. This attractive proposition comes with all the trimmings and consists of 125 ha dairy platform currently milking 360 cows in a 24 ASHB shed. 2 x 3 bay calf rearing 14
WEB ID WGR70367 and implement sheds, 65 paddocks on platform equivalent 60 ha flat to undulating land, ample water and numerous additional support sheds. Consent currently in place for a new effluent system. Currently supplying Open Country Dairy producing an average of 98,805 kgMS on a once a day rotation for the previous 2 years, prior to once a day the average was 112,234 kgMS over a 4 year period. The 2 titles provide additional options to develop at a later stage.
TENDER
VIEW By Appointment TENDER closes Thursday 31st October, 2019 at 4.00pm, at Property Brokers Ltd, 51 Taupo Quay, Whanganui
Mark Lourie
Mobile 027 273 3458 Office 06 281 3714 Home 06 342 7734 markl@pb.co.nz
Central Hawkes Bay Attention vegetable growers! - 246 ha
CENTRAL HAWKES BAY 1041 Tikokino Road 246 ha in the heart of the Ruataniwha Plains. Comprising approximately 140 ha LUC 1 land, arguably some of the best cropping soils in Hawkes Bay. The balance of the property comprises stony gravels. Generous water consents from two bores are in place until 2025 also a consent to store water from a permanent artesian stream.
WEB ID WR69987 property has been farmed by the same family for three generations. Presently growing onions for export. Also over the years, a range of small seeds, maize and other cereals have been grown, with excellent yields achieved.
Seldom do blocks with quality soils, Improvements include three reliable irrigation and quality housing homesteads, large 1750 m2 pack house and shedding present themselves to the and numerous implement sheds. This market in CHB.
BY NEGOTIATION + GST (IF ANY)
VIEW By Appointment
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
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Central Hawkes Bay Ponui Farm - 352 ha
DEADLINE SALE
CENTRAL HAWKES BAY 699 Kairakau Road 170 hectares Freehold 25 hectares Maori Freehold 157 hectares Leasehold approx. Total approx. area 352 hectares Situated in the Elsthorpe district, 32 km east of Waipawa. Great balance of contour from alluvial flats to steeper hill country. Reticulated water to large areas of the property. Subdivided by way of permanent post and batten fences and some internal permanent electric fences. Improvements include 16
WEB ID WR70321 an excellent four bedroom homestead, four stand woolshed, sheep and cattle yards. Presently breeding and finishing lambs and cattle. Crops including squash grown on the alluvial flats. The popular Kairakau Beach is only eight km distant with recreational and fishing opportunities. Ponui offers the discerning purchaser an opportunity to enter farm ownership at an affordable level while maintaining economies of scale.
DEADLINE SALE
VIEW By Appointment DEADLINE SALE closes Thursday 7th November, 2019 at 2.00pm, 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
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Tararua Leading the way Having seen significant changes in land use over the past 18 months with property sales signaling a move away from traditional sheep and cattle farming on some hill country, and also a shift out of dairying in flatter areas close to the regions’ main centres. Having seen significant changes in land use over the past 18 months with property sales signaling a move away from traditional sheep and cattle farming on some hill country, and also a shift out of dairying in flatter areas close to the regions’ main centres. Traditionally, dairy farms have sold to buyers already engaged in the industry or, to a lesser extent, to investor groups who have been attracted to dairying by its relatively high returns. However, this is changing to a certain extent, with five of the nine dairy properties sold in Tararua and Wairarapa over the past year having been pulled out of milking platform operation. Of the five, four have been converted back to lamb and beef finishing: The fifth farm is being used for dairy support. Such ‘de-conversion’ from dairying has been a feature of the Tararua market more than in the Manawatu and Wairarapa. Tararua dairy land values have remained lower over the years, and buyers are now motivated also by current high beef returns and low-interest rates. Average values have crept back about 4% over the past year from around $25,500/ha to $24,000/ha. On the western side of the Lower North Island, where there are three times more dairy farms as the Tararua/Wairarapa, dairy
farms are becoming notably harder to value with only nine properties in this category sold in the Manawatu/Rangitikei last season with a number remaining on the market unsold. At this stage, it’s clear that some shift in expectations of value held by both vendors and purchasers will be needed before this regional dairy farm market starts moving again. Hill country land-use changes in eastern parts of Tararua and Wairarapa have a very different – and more controversial – dynamic. The Government’s One Billion Trees programme and its subsidies have seen several sheep and cattle properties snapped up by forestry and so-called “carbon investors”, both New Zealand and foreign. Overseas Investment Office restrictions on foreign ownership of land for farming purposes do not extend so fully to forestry investment, and offshore investors are able to take up a slice of New Zealand’s drive for new investment in trees and timber production over the long term. The promise of carbon credits and the grants for new planting have made farmland more attractive for forestry in many areas, and in the lower North Island, the effect is also to negate the disincentive of being so far from suitable ports.
Commercial forests on the hill country of Tararua and Wairarapa were a margin on a timber-only basis because of high transport costs, but with carbon credits, the balance has shifted – and this has brought in a new class of land purchaser to compete with the traditional sheep and beef farmer. The competition is positive for farmers seeking to exit, although it has created significant concern in local farming communities about the prospects of further depopulation and lost income and services. On the eastern side from Dannevirke to South Wairarapa, market activity has been relatively steady with 60 properties changing hands in the past three years. The average per hectare price has increased 25% in that period to now be around $7,600. Reflecting much-improved returns on sheep meat and beef, along with New Zealand’s low-interest rates and reemergence of carbon credits as an incentive for land ownership. Across to the west in Manawatu, livestock property values have edged up in recent years, and the annual number of sales has been steady at around 30 (properties over 40ha in size). Indeed, the past three years has seen an increase in the region’s average per hectare sale price of 8% to more than $11,000/ha. 17
Tararua Top Grass Farm - 238 ha
TENDER
DANNEVIRKE 221 Tamaki River Road One of a kind, this excellent dairy unit is extremely well located just minutes south of Dannevirke township and centrally located to the Manawatu and Hawkes Bay. A development programme over the last 5 seasons has resulted in impressive production from this self-contained dairy operation with a 3 year average of 216,000 kgMS milking 500 cows. A 2016 built 60 bail rotary cowshed is centrally located to the operation and 18
WEB ID PR68345 features auto drafting and weighing, milk metering, ACR and in-shed feed system. Four homes provide ample accommodation on the property with the main homestead an impressive 5 bedroom 240 m2 two storey family home. Dairy units of this calibre in an affordable location which are fully compliant are unique in the current market.
TENDER
VIEW By Appointment TENDER closes Thursday 7th November, 2019 at 2.00pm, to be submitted to Property Brokers, 129 Main Street, Pahiatua
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
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Tararua Gardners Road farm - 106 ha
PRELIMINARY NOTICE
PAHIATUA Gardners and Nikau Roads This flat to undulating dairy unit provides options to the market, located just 20 km east of Palmerston North in a non-priority catchment this property is suited to continue as a well established dairy unit or a summer safe finishing or support property. Featuring favourable soil types with a consistent fertiliser and regrassing programme, excellent reticulated water and access providing a three year production average of 71,000 kgMS on
WEB ID PR69551 a low cost once a day system. Infrastructure is well provided with a 26 ASHB cowshed (ability to be 36), modern plant, compliant effluent system and 200 cow feedpad all in very good order. A four bedroom home completes an excellent add on or entry level package. Viewing from 1st November 2019. Call Jared or John to view today.
TENDER
VIEW By Appointment TENDER closes Thursday 5th December, 2019 at 2.00pm, to be submitted to Property Brokers, 129 Main Street Pahiatua
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
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Tararua Taree Farm - 220 ha
TENDER
MANGAMAIRE 431 Mangamaire Road Located 10 km south of Pahiatua and only 30 minutes from Palmerston North, this self contained dairy operation will appeal. Consisting of 120 ha flat platform, 18 ha flat support and 81 ha support property located nearby. Available as one unit or separate properties. Key infrastructure includes a centrally located 25 ASHB cowshed, two family homes and numerous outbuildings of a high standard. 20
WEB ID PR69084 Ongoing regrassing and consistent fertiliser applications on well sought after Manawatu and Kopua silt loams has resulted in an excellent production history of 138,000 kgMS (3yr avg). An impressive property well located in a renowned dairy / finishing location. Call Jared or John to view today.
TENDER
VIEW By Appointment TENDER closes Friday 15th November, 2019 at 2.00pm, to be submitted to Property Brokers, 129 Main Street Pahiatua
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
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Tararua Greenlands - 490 ha
PRELIMINARY NOTICE
PONGAROA 275 Akaroa Road Greenlands is centrally located six km North of the township of Pongaroa and under 50 minutes drive to both Pahiatua and Dannevirke. The 480 ha of effective area, featuring mostly cultivatable land which has been intensively developed over two generations, will suit most farming practices. Greenlands is renowned for producing quality stock to the market and has averaged 155%-160% lambing and 97% calving. Quality infrastructure includes over 70 dams, 2003 built four
WEB ID PR70469 stand woolshed (750 np), airstrip, cattleyards, ample shedding and an impressive family home.
VIEW By Appointment
TENDER closes Tuesday 10th December, 2019 at 2.00pm, to be This property is arguably one of the best submitted to Property Brokers, 129 Main Street Pahiatua farms in the district and provides the incoming purchaser with the ultimate turn key operation. Viewings from 1st November 2019. Contact Jared or John for more information.
TENDER
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
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Canterbury rural property market continues to consolidate
Value
121 279,510,406
93 177,150,906
REINZ data to 30 June (all companies)
Potential buyers equally may convey ‘bank’ messages rather than state that the farm is too expensive, and that they need a better yield to cover forward risks 5-10 years out from today. So, confidence to do a deal remains a factor.
New Zealand Dairy sales
22
800
40,000
700 600
30,000
500
25,000 400 20,000 300
15,000
200
10,000
100
5,000
2019
2018
2017
0 2016
0 2015
But anybody wanting to sell and wait for the pre-GFC era to kick in may want to reconsider as the market has truly moved on.
45,000
35,000
Median price/ha
So, while the outlook currently looks a little flat, often only modest value adjustments in certain classes of land, water, or both can get a market moving again.
Conrad Wilkshire, GM Rural for Property Brokers Ltd
2014
Livestock, Forestry & Grazing
Taking specialist advice outside of the traditional banking relationship is likely to be much more of a requirement going forward too as banks manage independence and conflicts of interest.
Too much debt is presenting as a factor, and mixed messages are being communicated with respect to the level of Agri-credit available to the market.
2013
865,000
2012
3
2011
Foresty
2010
26,072,000
More farms will inevitably be sold on yield this season, and, the assessment of water and the farm system developed to maximise profits. The days of relying on a district average have never served high performers well, and far less so in a market like now, it will come down to understanding the expected options and profits.
2009
15
2008
Arable
2007
73,322,500
2006
8
2005
Dairy
2004
2,100,000
2003
2
2002
Horticultural
2001
Canterbury
The reality is that median dairy farm prices (red line) have not dropped materially in the post GFC era. This is fundamentally at odds with the increased supply of farms to the market as farmers tackle; farm succession, retirement, or simply a lifestyle shift, away from compliance and labour challenges that beset New Zealand businesses these days. Or in some cases too much debt.
2000
Farms
As the supply of farms to the market builds we may see more pressure on the Canterbury median sale price (all land classes) as there has not been sufficient sales evidence to substantiate a variance, particularly of dairy. The price paid per hectare, relative to the water scheme the farm is tied too, or not tied to as the case may be, has historically been in dairy’s favour given the sectors relative profitability.
Dairy base indicates that there are approx. 814 owner/operators in the Marlborough/ Canterbury region, so eight dairy sales seems very light even with all the confidence issues. These low sales results are, however, very much in line with the national trend with only 146 dairy farms sold last season from close on 7,000 owner/ operator dairy businesses.
Year No of Sales
Median Days to Sell
Median Price per Hectare
Number
The year to 30 June 2019 makes for sobering reading, our Property Brokers Ashburton office alone in times past, would have gone close to where the entire Canterbury market is today.
Central Canterbury Soils, water, location - 131 ha
DEADLINE SALE
SHEFFIELD 1642 Tramway Road Faithfully farmed in a tightly held location for multiple generations, only 30 minutes to Christchurch. The Vendors have future proofed the properties production capabilities through the strategic investment in the Sheffield Stage of the Central Plains Water Irrigation Scheme. Enhanced water reliability is achieved through a group funded storage lake. Nutrient flexibility is an associated benefit of the scheme. Currently being utilised as a mixed cropping / finishing farm the
WEB ID DFR70186 quality mix of soils allows a wide scope VIEW By Appointment of future land use. The shape of the DEADLINE SALE closes Thursday property lends itself well to efficient 21st November, 2019 at 4.00pm pivot irrigation designs. No direct neighbours allows significant biosecurity benefits. Supporting infrastructure includes a two-stand raised board woolshed with covered yards, workshop and substantial implement shed. Private character homestead set in mature gardens has four bedrooms plus office, formal lounge and dining.
DEADLINE SALE
Matt Collier
Mobile 027 205 6626 mattc@pb.co.nz
Gareth Cox
Mobile 021 250 9714 gareth@pb.co.nz
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Central Canterbury A2 Dairy - Leading with pride - 215 ha
DEADLINE SALE
HORORATA 1106 Ardlui Road 215 ha semi self contained dairy farm located in favoured Hororata, Central Canterbury.
WEB ID DFR70473
Full complement of housing including a VIEW By Appointment four bedroom homestead plus two staff DEADLINE SALE closes Thursday houses. 21st November, 2019 at 4.00pm, (unless sold prior) In addition the property holds an A2 Milking 700 cows off 184 ha milking specialty milk supply contract with platform through a modern 40 ASHB shed with ACR's, auto teat sprayer and Synlait Milk and has recently been meal feeding system. Excellent irrigation awarded "Lead with Pride" water allocation from the hybrid system accreditation, both providing superior of groundwater wells combined with returns from milk supplied. Central Plains Water scheme and applied via centre pivot irrigators.
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DEADLINE SALE
Gareth Cox
Mobile 021 250 9714 gareth@pb.co.nz
Matt Collier
Mobile 027 205 6626 mattc@pb.co.nz
Mid Canterbury Quality dairy investment - 308 ha
CAREW 1328 Cracroft Maronan Road This quality farm is located in the favoured Arundel / Carew district that is approx. 30 minutes to Ashburton and 10 minutes to Geraldine. Special features include: • Mayfield Hinds Valetta Irrigation Scheme (One of the cheaper and most reliable irrigation schemes) • Irrigation dam for storage on farm • 70 bail rotory dairy shed (built 2007) with in shed feeding and computer technology
WEB ID AR70421 • Pivot irrigation plus two Roto Rainers completing four runs each • Synlait supply • Five modern homes, four with double glazing with the main home of four bedrooms, two living areas plus office • Proven track record milking 1,100 cows targeting 485,000 kgMS this season • Excellent lanes system - three troughs per paddock • Full range of farm improvements
FROM $15,100,000 + GST (IF ANY)
VIEW By Appointment
Chris Murdoch
Mobile 027 434 2545 Office 03 307 9191 Home 03 307 2940 chris@pb.co.nz
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North Otago Views, luxury, privacy & income - 24 ha
OAMARU 324 Newlands Road, Incholme A rare opportunity to purchase a lovely four bedroom home situated on 24 ha. Extensive mountain and rural views from this 2004 Oamaru Stone, double glazed home in an elevated, sunny, private position. Open plan kitchen / dining / living and office with an expansive patio area. Kitchen has breakfast bar, double wall oven, large gas hob, dishwasher and pantry. Main
WEB ID OMR72478 bedroom with ensuite and walk in VIEW By Appointment wardrobe. Main bathroom with spa bath, separate toilet and laundry. Heated via woodburner with underfloor heating in the kitchen and bathrooms. Internal access double garage and raised vegetable gardens. 6 x 8 m shed and Te Pari cattle yards. Approx. 3,500 hazelnut trees providing additional income.
BY NEGOTIATION + GST (IF ANY)
Merv Dalziel
Mobile 027 439 5823 merv@pb.co.nz
Dunrobin - A trophy property - 729 ha
DEADLINE SALE DUNBACK 1750 State Highway 85 Dunrobin presents a unique opportunity to purchasers, of a large scale 729 ha, specialist deer & beef breeding property or potential suitability for fine wool or forestry. Located at Dunback just 19 km inland from Palmerston and 73 km from Dunedin to the south and Oamaru to the north. Natural breeding country with tussock and spring fed creeks, close to all services & port access. The
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WEB ID OMR70439 property is fully deer fenced with well-planned subdivision of 5 hill blocks and 5 paddocks plus lane leading to the deer complex, cattle yards and woolshed. Large deer shed and holding yards, expansive circular cattle yards. The woolshed has been converted into 2 bedrooms, kitchen, bathroom / toilet. A very low cost and easily managed property.
DEADLINE SALE
VIEW By Appointment DEADLINE SALE closes Thursday 31st October, 2019 at 4.00pm, (unless sold prior)
Greg Jopson
Mobile 027 447 4382 Office 03 307 9196 gregj@pb.co.nz
Merv Dalziel
Mobile 027 439 5823 merv@pb.co.nz
West Coast The future looks bright for the next generation of dairy farm owners on the West Coast
The last few years has seen more than its fair share of head-winds for dairy farmers on the Coast, but for those looking to invest or buy their first farm in the region, 2019 could see the beginning of positive change,� Says Gareth Cox a Senior Rural Agent for Property Brokers with strong links to farming on the West Coast. The quality of the farming systems, on sustainable platforms, is widely recognised, including by environmental bodies like Fish & Game. The traditional low stocking rate per hectare with integrated milking platform and support area, in combination with our heavier soil structures and regular rainfall, all line up well for a long-term sustainable dairying footprint on the Coast. The future for Westland milk has become a lot clearer too; historically, over recent years, there has been a big shadow over new investment in the Coast. Banking terms continue to evolve in our region, much like everywhere else as banks seek to hedge both their return on capital and the volatility in milk returns by seeking principal repayment.
These days you will probably need to have up to 50% of the value of the farm ‘in cash’ to get to the start line on your first farm with precise business controls to keep farm working expenses under $4/kgMS to drive a sustainable profit.
an owner/operator operation, with less staff and everything managed within the one system. We have inquiries from outside the region; this is likely to feature again as in the past.
The excellent news for the Coast is that the weight of money involved is close to half that of many other dairy regions around the country.
Interest is particularly from those with an aspiration to farm on their own account, providing an opportunity enjoy some of the best recreational lifestyle available anywhere in New Zealand.
You can buy a fully integrated, owner operator dairy unit at or around $20,000 to $25,000/ha and with Westland Milks capital structure now a lot more certain; you can plan to repay principal from the very first day.
For our part, we will continue to look at any and every opportunity to promote the dairy investment opportunity on the West Coast in conjunction with local government, the dairy company and local business.
I can personally attest to the fact there is still genuine interest in buying dairy farms on the Coast. Particularly for those wanting
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West Coast Dairy farm + Adjoining lease - 170 ha
HOKITIKA 730 Johnston Road Attention Sharemilkers, First Farm Buyers and Investors. Here is an outstanding opportunity to secure a high performing 170 ha dairy farm providing excellent economies of scale and returns without the full capital outlay. On offer to purchase is a 91 ha property featuring a tidy 36 ASHB shed with meal feeding system plus a full range of outbuildings. Complemented by a permanent material three-bedroom home. Available for lease is the Vendors adjoining 79 ha dairy platform, which is 28
WEB ID HKR70191 currently operated as a combined VIEW By Appointment business milking 380 cows with average production of 192,411 kgMS over the past three seasons. Located in a favoured dairying area with easy access to amenities in nearby Hokitika. The recent sale of Westland Milk Products offers a bright future for dairying on the Coast, so if you are searching for that first farm opportunity I’d suggest this is second to none! Livestock and plant available as a going concern.
BY NEGOTIATION + GST (IF ANY)
Gareth Cox
Mobile 021 250 9714 Office 03 768 7145 gareth@pb.co.nz
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NZ Forest Sales forms strategic alliance with Property Brokers Born on the back of an established forest sales business that has been running across New Zealand for the last ten years, NZ Forest Sales Ltd has been leading the way in marketing forest assets across New Zealand.
George Searle, who has an extensive record in selling forests ranging from small wood-lots through to large forest estates, is the founder of the business. After completing a Degree in Forestry and subsequently a Post Grad Diploma in Marketing, he spent some time managing Corporate Forestry before entering into the Real Estate industry. For the last ten years, his focus has been on selling forest assets across NZ culminating in the establishment of NZ Forest Sales in April 2019. The company is excited to have Todd Buchanan join the team. An Honors in Forestry Science together with over 25 years industry experience, means that Todd brings not only a wealth of forestry knowledge but also brings an extensive network of industry contacts to NZ Forest Sales which has made his move seamless.
Owners who have chosen to market their assets through us have been nothing short of impressed. Our extensive database of buyers, as well as our ability to communicate effectively around forestryrelated matters and the Emissions Trading Scheme, means that we can offer owners comprehensive, efficient solutions and service. NZ Forest Sales has moved to create a strategic alliance with Property Brokers NZ, leveraging NZ Forest Sales’ forestry knowledge and contacts alongside Property Brokers’ vast network of local agribusiness alliances. George Searle said, “The relationship with Property Brokers is exceptionally good news for forest owners, as the range of buyers is further widened by the networks that they bring to the table.”
Anyone looking at buying or selling forests in NZ should contact either George Searle on 021 307 022 or Todd Buchanan on 022 054 0780. Alternatively, email admin@nzforestsales.nz 29
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
Brent Pocock Matamata 027 433 9909
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
brentp@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
Richard White Whanganui 027 442 6171
Mark Lourie Whanganui 027 273 3458
Chris Heenan Hastings 027 599 3527
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
markl@pb.co.nz
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jared@pb.co.nz
chrish@pb.co.nz
lloyd.alabaster@pb.co.nz
bevanp@pb.co.nz
patp@pb.co.nz
richardw@pb.co.nz
North Island East Coast
George Searle Gisborne 021 307 022
georges@pb.co.nz
Alan Thorpe Gisborne 027 634 7776 alant@pb.co.nz
Tom Lane Gisborne 021 058 7018 toml@pb.co.nz
David Egan Gisborne 027 499 5028
John van Pein Gisborne 027 446 9333 jvp@pb.co.nz
carlv@pb.co.nz
davide@pb.co.nz
Carl Van der Meer Wairoa 027 493 5525
South Island Team
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
Willie McLaughlin West Coast 021 0267 4385
paulc@pb.co.nz
gareth@pb.co.nz
gregj@pb.co.nz
mattc@pb.co.nz
chris@pb.co.nz
michael.robb@pb.co.nz
toby@pb.co.nz
michael@pb.co.nz
rodger@pb.co.nz
craigs@pb.co.nz
merv@pb.co.nz
williem@bp.co.nz
Your Local Sales Consultants Our Property Brokers family is now 650+ strong, with over 45 branches across the country. Still doing business with a handshake, we sell thousands of properties a year, combining our local knowledge and passion with market leading expertise and reach – both nationwide and across the globe. As members of the NZ Realtors Network we have access to a huge referral network of buyers and sellers to help get you the best the market can offer. We’re also part of the exclusive Leading Real Estate Companies of the World network, giving us global connections to buyers interested in New Zealand.
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Here’s our promise Our people have the experience and expertise to support your needs and deliver you the best results. Our True Team promise is our undertaking that when you work with us, while you’ll still have a lead agent, you’re guaranteed to have a true team of equally committed agents, marketing experts and support staff working for you, right across the country. They will put your interests first, to get you and your farm the best result. For over three decades we’ve been contributing to the prosperity and wellbeing of provincial communities that we call home.
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