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19 February 2021

Property report: The rise of rural and provincial properties

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 asked if the rural market was as hot as the residential market.

Newbold said that, although the rural market wasn't as hot, there was renewed interest, with buyers out there perusing rural properties.

Also, for the first time in a number of years, there was an increase of property value, Newbold said.

Dairy properties were becoming of interest as their yield grew, and Newbold reported that he was starting to see movement in the "bottom-end." He anticipated more demand as time went on.

Currently, the returns for dairy farming were much better, compared to sheep and beef, Mackay said.

"There is a little bit of activity in that space, but I think it is going to be tight. The returns are too good and people are holding on to them," Newbold said.

Mackay said he'd heard that some residential property prices in provincial New Zealand were doubling in price over a short period of time - in places such as Tapanui.

Newbold confirmed this and said that statistics reflected high property value increases in some provincial New Zealand towns, compared to larger metropolitan areas.

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Property report: Rural market continues to grow

27 January 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.

The rural sector was receiving a lot of interest outside of the traditional rural buyers, Newbold said.

Many of the buyers were looking at grazing or finishing blocks around the 1 to 2 million dollar mark, and using it as investment opportunity to lease out to farmers or growers.

Meanwhile, the lifestyle market continued to be a hive of interest. Newbold said the challenge here was that there were not a lot of new listings coming to the market at this stage.

Mackay asked about the interest around the dairy sector. An increase of returns had generated an increase of interest in the dairy industry. Newbold said that some of the traditional markets had seen an increase of sales.

Sheep and beef properties were facing price challenges, which was reflected in property demands, Newbold said.

The horticulture industry was continuing to grow and generating investment interest.

Newbold said people might not be aware of the huge amount of land that was primarily sheep and beef, had now become horticulture property.

Property Report: The rural market boom

11 December 2020
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.

Good news for the New Zealand rural real estate industry as Newbold explains that the past few months have been exceptional for sellers.

Newbold talks about corporate investors and groups of individuals from metro areas wanting a safe space to invest. The movement of people from metropolitan areas to provincial New Zealand doesn't look like it will slow down.

Mackay brings up two defining dynamics of the market: the increased interest from people living in cities looking at lifestyle blocks, and the success of horticulture based properties.

Newbold adds that the horticulture industry is fascinating as there is not enough stock and farmers have been holding onto land, and the returns on stock have been really good.

Mackay queries the backbone of New Zealand agriculture with dark clouds looming over the sheep and wool industry. Newbold assures Mackay that there is still interest in the sector.

Property report: Rural investments on the rise

20 November 2020

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 queries the return of corporate investors back into farming. Newbold confirms that they have returned along with a variety of other buyers.

In addition to the variation of buyers, banks are currently "playing ball" in terms of rural lending up to certain thresholds.

 

Newbold elaborates that there has been some loosening by the banks as this is the best 3-4 months he has seen in the past few years.

Horticulture continues to be a stand out in terms of investment, and dairy farming seems to be making some positive movements as people move past the negatives of the industry.

Mackay talks about post-covid migration towards the rural sector as people move away from the metropolitan areas.

Newbold adds there is big demand for lifestyle blocks as people now have the ability to work from home.

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