Header Image

Helping grow
the country

< Back to Blog
14 July 2020

Rural real estate report: The potential of provincial properties

PGG Wrightson's General Manager for Rural Real Estate Peter Newbold joins The Country's Jamie Mackay to take a look at the rural property market this month.

Mackay asked Newbold to crunch the numbers and report on how much the rural market was behind - in terms of volume - in comparison to 2015/16.

In 2015 the rural market was just short of $4 billion in sales, compared to 2020 which was just over $2 billion, "so you can see there's been a real decline" Newbold said.

The rural market continued to be overshadowed by the lifestyle market.

Mackay and Newbold discussed the potential change in attitude towards the rural market; post Covid-19, as those in metropolitan areas looked to move to pastoral properties.

There had been a lot of interest in provincial New Zealand where many towns were supported by the rural industry, Newbold said.

In addition, the costs of these properties were better value compared to the metro markets, he added.

Mackay asked if some rural properties were starting to stack up on a yield basis and wanted to know if perhaps a few of the more marginal properties were good buying.

Newbold reckoned they were, and the past few weeks had seen signs that a number of listings were on the up and with comparable prices.

To view properties and more real estate news head over to www.pggwre.co.nz

Related Articles

Positivity from the primary sector and successful real estate sales

22 May 2020

GM for Rural Real Estate Peter Newbold joins The Country's Jamie Mackay as he journeys out of the home office for the first time since the lockdown.

Mackay comments on some positivity in the primary sector, and mentions a previous conversation with Todd Muller that highlights the movement of people at work in the horticulture and viticulture sector and how they returned to work without an appearance from Covid-19.

Newbold agrees and notes that the only sector that may call for some concern is in the Hawke's Bay and areas that were hit but the drought earlier this year.

General farming real estate continues to maintain good interest, particularly sheep and beef.

Newbold highlights this could be due to quality, capacity and works ability. Newbold adds that there has been an increase in enquires since the lock down and not all of them are from locals or corporates.

Mackay moves on to the PGG Wrightson Real Estate's Property of the Week.

Mackay said the purchase of this farm was a good example of the kind of properties that have been selling well recently.

Newbold agrees and highlights that if the property infrastructure is good and the marketing is done well then the property will sell.

Mackay wraps up by touching on the dairy farming and low levels of interest in dairy properties. Newbold emphasises looking at the yield piece rather than the capital gains.

Property of the Week – Ruapuna: Productive Dry Land With Reliable Rainfall - SOLD

(SOLD) The property has cattle yards, numerous sheds, concrete floor fertiliser shed, plus 440T silo capacity for grain storage. New all-weather farm access track laid in January 2020.

How rural real estate could change after Covid-19

30 April 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.

Although the lockdown had put restrictions around trading, a few properties had been sold in the past month, said Newbold.

The majority of these transactions were rural without homes on the property.

Mackay queried "the new normal" as he and Rowena Duncan watched drone footage of a property showcasing virtual viewings.

Mackay stressed that this still gives a really good look at the rural property.

PGG Wrightson was promoting and doing a lot more digitally, with an increased use of digital mail, social media, display marketing, Google and video content, said Newbold.

Newbold felt these digital elements would become more prominent moving forward as they gave buyers better insights into the properties.

Mackay asked if there will be a reduction in the value of farmland.

Newbold was uncertain on this trend as pre-Covid-19 there was already a lull in the market with drought, banking restrictions, processing delays and environmental issues.

However, Newbold remained hopeful that, as New Zealand moved out of the Alert Level system, sales of rural farming properties would slowly return and prices remain stable.

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.

Share this page