Rural buyers were looking well past lower returns in the dairy sector as they made purchase decisions.
Real Estate Institute of New Zealand data for the three months to April has revealed a continuing strength in the rural property market, albeit at lower sales volumes.
Bayleys is anticipating strong interest from property buyers at Fieldays.
The median price per hectare for all farms sold in the three months to April was $30,000 a hectare, up from $28,668 a hectare for the same period last year.
The REINZ All Farm price index which adjusts for differences in farm size, location and type experienced a rise of 0.6 per cent against the same three months last year.
The Bay of Plenty reported the largest sales increase, up four from last year, and Canterbury and Northland experienced two extra sales above the same period last year.
Despite being more subdued, the dairy sector continues to have isolated sales of good quality farms at very good prices, often to neighbouring owners, reflecting optimism in the industry’s longer term future.
That buoyant rural property market has provided an optimistic backdrop for Bayleys’ National Fieldays exhibit this year, says Bayleys exhibition organiser and their Waikato Country Sales Manager Mark Dawe, who is anticipating strong interest from prospective buyers.
The Fieldays regularly attracts on average 123,000 visitors a year, making it one of the largest regular outdoor events held in the Southern Hemisphere.
“Neighbours are playing a big part in holding property prices firm on some sales. Here in the Waikato there is also a strong interest in properties from people outside the region, even some who have left and now want to return.”
Bayleys has sold more than $150 million worth of dairy properties within the Waikato alone over the past 12 months to April 30. “Since just prior to April we have sold unconditionally six dairy farms. People are dealing with a tough cash flow environment, but longer term they are feeling quite optimistic about the sector’s future.”
The sales had spanned the scale for dairy operations, spread from 50ha to just under 500ha from south of Tokoroa to north of Huntly.
In the past six months Bayleys had also sold more than $160 million of rural properties in the Waikato alone.
Bayleys’ exhibit at this year’s Fieldays will include profiles of all properties listed in the company’s “Preview” booklet, due out just prior to Fieldays commences.
“We have opened Preview up to all our franchisees around New Zealand and have had excellent response. There is a wide range of quality properties that are certain to generate a lot of interest among potential and existing farm and lifestyle property owners visiting Fieldays this year.”
Bayleys New Zealand Country manager Simon Anderson says he anticipates there will also be strong interest from potential buyers in properties within his Bay of Plenty region, buoyed by strong kiwifruit returns as the industry recovers from the Psa outbreak.
Kiwifruit orchards are exceeding previous records and valuers reporting sales values of $550,000 a canopy hectare, and even Green orchards typically fetching $350,000 a canopy hectare.
Simon says Bayleys’ association with Mystery Creek Fieldays extends back well over two decades.
“This year’s theme of collaboration is a great fit for us as a company that has worked hard to match farmers and land owners to the properties best meeting their personal and professional needs.”
The Bayleys stand can be found at Mystery Creek Fieldays on site D54.