Property Report: 2023 a tough year for rural real estate
December 2023

Property Report: 2023 a tough year for rural real estate

There’s no denying 2023 has been a challenging year for the rural real estate market.

General manager of PGG Wrightson Real Estate, Peter Newbold told The Country’s Jamie Mackay it was one of the toughest he had seen “for many years”.

“There’s just been so many different things that have been hitting that sector,” Newbold said.

“When you look at interest rates, inflation, approaches by the banks, farm gate prices and the like … it’s been a very challenging year on many fronts.”

The sheep and beef sector had been severely affected after demand from the forestry sector diminished.

That demand had been underpinning sheep and beef values but had “disappeared in a hurry,” according to Newbold.

“The values that were there six, nine, ten months ago aren’t there [anymore].”

Therefore, vendors needed to reevaluate their pricing, or properties would not move - something made challenging by diminished returns to the sector, Newbold said.

“Maybe as we move into autumn, we’ll see some of that pricing being readdressed and some movement in that area.”

But, it wasn’t all bleak - Newbold said dairy was looking “encouraging” and “improving all the time”.

“I’d be lying if I said it’s booming, but definitely sales are picking up.

“There’s a lot more interest and I think...we’re going to see a lot of momentum in that space - the future looks good.”

Another industry looking positive was horticulture, which Newbold expected to see big changes in – particularly when it came to kiwifruit – during February and March next year.

“I think the pricing has settled and we will see some upside over the coming months,” Newbold said.

Peter Crean
Property Report: Rural buyers optimistic about farming’s future

Long-term confidence in primary sector returns is keeping the rural real estate market afloat, despite current headwinds.

Read more >
Share this post