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13 December 2019

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.

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PGG Wrightson's GM for Real Estate Peter Newbold joins The Country's Jamie Mackay to talk rural property this month.

Mackay gets into the discussion of money and where it is coming from, and questioned if there is a Mexican standoff between the banks and the farmers. It was a challenging space as sales were quiet, returns for farmers were good, and the banks have changed their rules said Newbold.

"Fair to say some of the vendors will need to look at it from a yield basis rather than a capital gains story" said Newbold.

Mackay and Newbold agreed that if farming headed back to a yield story it would benefit everyone. Newbold added that there always needed to be something for the next person.

Questions were raised around the price of dairy properties, as there was zero activity and could this be due to no one knowing where the market sits. Newbold elaborated this could be location, property size or tier related issues.

Mackay asked with more marginal dairy properties, are they in danger of being converted to beef and sheep farms. Newbold added that land use stories are moving forward particularly in provincial areas, on the condition that sheep and beef values are maintained.

Forestry is gaining interest, particularly on the East Coast of the North Island, as there is good money being invested into the land.

Sales of horticulture land have been going strong. Mackay quotes from The Real Estate Institute of New Zealand (REINZ) rural spokesman Brian Peacock who stated "while dairy and finishing properties were down considerably in terms of the number of sales, the stand out category is arable land.

Provided by The Country.

Autumn Lifestyle Collection 2020

03 March 2020

This autumn’s Lifestyle Collection is just released showcasing lifestyle and residential properties on the market.

We’ve just released the autumn edition of our Lifestyle Collection magazine, showcasing a wide selection of quality lifestyle and rural-residential properties on the market. Read online below or contact your local office to have a printed copy mailed to you.

For anyone seeking to buy or sell lifestyle and residential property, we have a national team of expert locals who can assist and guide you. Our salespeople have deep roots in their communities and are therefore ideally placed to provide wise and objective advice to help you achieve your property goals.

In this edition of the Lifestyle Collection more than 70 pages of current lifestyle and residential listings are featured along with interesting property stories from around the country. As well, check out this autumn’s top tips for growing garlic, summer hot chillies and how to adopt retired working dogs. Our top tip this edition is Agrecovery - this article  provides information on sustainablility on our lifestyle blocks.

Head to PGGWRE to browse properties and more now.

Rural Real Estate Report March 2020

20 March 2020

The Country's Jamie Mackay is joined by PGG Wrightson's GM for Rural Real Estate Peter Newbold to take a look at the rural property market this month in light of Covid-19.

"It is fair to say nothing has really changed in the last few weeks" said Newbold.

The interest continued to be around sheep and beef properties, with an increase of activity around horticulture, and dairy was still subdued.

Newbold said he anticipated that this might change and real estate values will be challenged especially around yield issues.

Mackay brought up that asset prices were being challenged and there might be renewed interest in dairy farms as it seemed to be one of the more resilient industries.

New Zealand was fortunate to have these resources "at our back door" and the rural market might see growth as a result said Newbold.

Situations such as Covid-19 bring out the worst and best in humanity said Mackay.

Newbold reflected on a comment from his mother, who was raised in war time England - "we all got through it – and we worked together."

Mackay and Newbold then took a look at the latest property of the week – Off the grid lifestyle in Wairau Valley.

"Highlands" is set on 12ha and is above all else with its grandeur house and magnificent vista.

It has the added bonus of an extra three-bedroom cottage also set in an elevated position below the main house.

The farm is well fenced into 16 paddocks of various sizes making it ideal for horses or other livestock.

There are cattle yards and numerous outbuildings which include lock-up workshops, tractor sheds and hay sheds.

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