Southland Market update

Those with steeper contour and a more outlying location have been a challenge. Demand for high quality, well located horticultural land is very strong and selling at premium prices.

We also have demand in the larger scale sheep and beef market, and like other areas, values have been underpinned by forestry up until now, with prices in the range of $10,000 to $13,000/ha. Whether these prices hold is a matter of wait and see.

Those strong sales included five Tier 1 dairy farms. Selling in this tight market has been an exceptional result for our vendors, and it is pleasing to note that these properties have held their value, selling for between $42,000 to $48,000/ha. The balance of sales being a mix of dairy support properties and sheep/beef.

The dairy support and grazing market is essentially a two-tiered market now. The new land use regulations require farms that have no history of grazing dairy stock during the ‘reference years’ (2014-2019) to apply for a consent from Environment Southland. Those with a proven history and of easy contour are in demand and selling well.

In Southland, we face the same headwinds as other regions around obtaining credit, rising costs, and environmental compliance. For the experienced agents, this is nothing new, we have been here before, and we know the market will continue to transact and good buying opportunities will be present.

Where a skilled agent adds value is by thinking laterally and working with our Vendors and Purchasers to create those opportunities. In some instances, that could involve the Vendors providing finance in conjunction with the bank and/ or structuring deals on a lease-to-buy basis.

The past three months represent a strong performance from the Property Brokers Southland team. With continued demand for quality properties and guidance from our experienced team, we have every confidence we can continue to achieve these excellent results into the future. Southland has and continues to offer good value from a farming perspective with a reliable climate and quality soils.

John Hay Rural Sales Consultant Property Brokers Invercargill