As we transition into spring, rural property markets across the North Island are displaying diverse levels of activity and opportunities. Here’s a snapshot of what’s happening in the following regions:
For those interested in the South Island, be sure to check out their market snapshot as well!
An 11.15-hectare Pukekohe property, on the town’s main commercial road, sold for ongoing use as a market garden in the winter, while the autumn listing of a 430-hectare Kerikeri property with unique potential for coastal subdivision gained huge attention. Although the Northland market improved through the winter, spring listings remain below where they would normally be. Based on the increased dairy payout forecast, continued improvement is likely through the rest of spring and summer, though buyers will remain cautious for the foreseeable future, and confidence in sheep and beef farming in the region will take longer to recover. Some Northland rural properties are drawing attention as potential renewable energy assets, with corporate and private investors seeking land to support solar energy generation. Blocks of approximately 60 hectares with easy access to the power network present suitable criteria for solar farming.
Across all farming categories the Waikato and King Country rural property market had a subdued winter, with activity well short of the same period in 2023, which in turn was below 2022 levels. Thundercross Valley Dirt Bike Park, an adventure tourism business on a 300-hectare farm 69 kilometres north of Hamilton is one of the region’s notable current listings. Within the next few months, as inflationary pressure eases and interest rates stabilise below where they have been for the past two years, a new market should emerge in the region. Responding to stimulus from recent positive announcements, the dairy sector will likely lead this upswing. Several dairy farms listed for early spring sale near Te Awamutu may set the scene. With other aspiring vendors awaiting a signal from the market, if these farms transact favourably, more listings will likely follow.
Heavily influenced by the horticulture sector, while market activity around kiwifruit and avocado orchards remains subdued, rural property in the Bay of Plenty awaits a reboot. As elsewhere, as costs increase the profitability of primary production has been squeezed. Since the past season’s quality issues around kiwifruit were addressed, the market seems to have settled on agreed per canopy hectare values. As the G3 variety is again producing strong returns, a gradual rise in sales activity should follow. However, the avocado sector still faces challenges. Notable Bay of Plenty winter sales include a 106-hectare Rangitaiki Plains dairy farm that sold for $5.75 million; a 242 hectare Pikowai grazing, dairy support and beef finishing property that sold under OIO authorisation to forestry for $4.9 million; and a 149 hectare bareland drystock Omanawa farm that changed hands for $4.783 million.
In recent months the rural property market through Taranaki, Whanganui, Wairarapa, Manawatu and Horowhenua has benefited from growing confidence among farmers, with reducing interest rates and increasing commodity prices the critical factors. Plenty of listings are set to come forward through the rest of spring and into the summer, particularly sheep and beef property, providing purchasers with a range of options. Steady activity is likely as buyers and sellers are generally aligned on where values sit, albeit this is at a level lower than where expectations were during the market peak three years ago. Farms coming forward ought to find purchasers, and the market should gradually gain traction during the spring and summer, especially if red meat schedules continue to trend up. With realistic, motivated vendors genuinely prepared to sell, good farms with scale will always command a premium.
While lower interest rates and improving returns have given Hawke’s Bay farmers a more positive mindset than last year, so far that has not resulted in increased rural property market activity. On the basis that the buyer pool is limited, and that a mild winter has heightened aesthetic appeal, several vendors are going to the spring market early, though the numbers are not overwhelming, and approximately on par with any other spring. Those with realistic expectations around values should find buyers, and may encourage others onto the market. Winter horticulture sector transactions focused on rationalisation among the industry’s bigger players, including buying orchards to pull out trees for replacement with preferred varieties. Properties have changed hands at values ranging from $140,000 to $175,000 per hectare, excluding homes, or above if the tree varieties are deemed to offer premium appeal.
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