Real Estate Report: The hard sale for 2019 and beyond
PGG Wrightson's GM for Rural Real Estate Peter Newbold joins The Country's Jamie Mackay to talk rural property this month.
It has been a tough year for selling farms – it started slow in spring and is only just coming into fruition.
Mackay notes that in 2008, pre Global Financial Crisis (GFC), New Zealand farm sales peaked at 6 billion dollars. The following year this dropped to 1.5 billion. Newbold adds that there has been a lot of drop off in the past 10 years and is slowly starting to pick back up.
There are still some great opportunities around at the moment, but the biggest issue is funding. Mackay thanks Rabobank because they specialise in farm loans, as other banks have put a halt on lending.
Newbold agrees with Mackay as this is the number one issue in selling farms, and he hopes that this will readjust and people can move forward.
From the vendor's perspective, Newbold says that the key is to price the property correctly and then they should gain some momentum. Buyers are viewing properties based on a yield basis.
Mackay mentions that the dairy market is in a bit of limbo at the moment, but beef and sheep continues to be strong. Newbold adds that grazing property sales have slowed down, which have mirrored that of dairy as buyers continue to be choosy.
Mackay talks about how horticulture is still going strong, especially with the recent kiwifruit sales with Stan Robb.