18 June 2021
The Country's Jamie Mackay is joined by PGG Wrightson's General Manager for Rural Real Estate Peter Newbold, to take a look at the rural property market this month.
Mackay said there was only one word to describe the market at the moment - "gangbusters."
Newbold agreed, adding that it had been an incredible past few months for the market and there had been a real lift in farm sales for the first time in a while.
Mackay asked if the out of kilter land prices from the previous "dairy boom" would happen again.
Newbold said he doubted this would happen, as people were more astute.
He thought there would be strong sales, but not necessarily a "boom".
Mackay said people had avoided the dairy market but recent turnarounds had made it a great yield story.
Newbold added that while it had taken a bit longer than people wanted, there was increased interest in dairy, and banks were looking more favourably at the wider rural market.
The sheep and beef market continued to be strong, but the wool market wasn't "too flash," Mackay said.
Prospect for lamb, beef, and mutton were looking extremely positive and Newbold noted that sales of these properties had been exceptional.
Horticulture continued to be going "great-guns" and no one seems to be selling, Mackay said.
Newbold added that there was no shortage of buyers for horticulture properties.
Banks had loosened the reins on loans in the rural property market and were lending with more enthusiasm, as rural property transactions and interest increased.
19 July 2021
The Country’s Rowena Duncum is joined by PGG Wrightson’s General Manager for Rural Real Estate Peter Newbold to take a look at the rural property market this month.
The 2020-21 rural real estate season has come to an end. Newbold notes that it has been the best year recently, especially with all sectors selling robust and values are up and there has been some promising movement in the dairy sector.
Duncum queries who the most active buyers are this past season. Newbold highlights that usually it is someone from the rural community, but now there are a lot of new entrance buyers in the market which hasn’t been seen for some time.
Farmers who are looking at putting their properties on the market have been driven by retirement, family succession, the banks are cooperative, and the current positive market place. Newbold adds that if you are looking at selling, then now would be a really good time.
Overseas investment office regulations are still impacting the rural real estate market, particularly with properties over the $13 million mark.
Duncum queries if issues around labor are influencing property buyers decisions. Newbold notes that there is more to the day-to-day operation of a farm than some people realize.
Newbold highlights that the rural industry is a wonderful community to be involved with.
27 August 2021
Listen now: Lockdown won’t stop the Rural Market
The Country’s Jamie Mackay is joined by PGG Wrightson’s General Manager for Livestock and Rural Real Estate Peter Newbold to take a look at the rural property market this month with New Zealand being at alert level 4 lockdown.
Mackay queries if this lockdown will encourage Aucklanders to invest in rural property. Newbold thinks there will be some movement to provincial New Zealand, and not only because of lockdown, there is a good sense of community, a better lifestyle, and a more reasonable cost of living.
The livestock season annually slows down this time of year due to lambing and calving, and should see minimal disruption due to the lockdown. Newbold adds that welfare is the only reason to be visiting farms at this stage.
Newbold reminds Mackay that when New Zealand moves to alert level 3 that access to farms is still limited and sale yards can be operated with strict protocols. Thanks to Bidr, sale yards have the capacity to broadcast auctions online, allowing those out of region to purchase livestock.
Mackay asks if people are still looking for rural investments throughout lockdown. Newbold confirms that people from all walks of life are definitely still looking, and that there will still be activity as spring approaches.
Newbold adds that the dairy industry has quietly generated interest recently and there have been sales taking place.
Mackay asks if the rural market will be anything like the peak in 2014. Newbold thinks that this is possible and if you look at the position the world is in, people will see a lot of value in rural properties especially in New Zealand.