Property report: Rural market positive following uplift in dairy sentiment

The rural real estate sector in New Zealand is experiencing increased activity, buoyed by strong dairy payouts.

That’s the view of PGG Wrightson’s General Manager for Real Estate, Peter Newbold.

Speaking to The Country’s Jamie Mackay, Newbold highlighted that the recent jump in milk prices to $10 per kilogram of milk solids has sparked heightened interest in dairy farm properties and dairy support land.

“We’re seeing significant interest in dairy farms,” Newbold said, adding that the current challenge is a limited number of listings.

“I think if there’s one issue we’ve got at the moment, we probably haven’t got enough listings now, but definitely a lot of interest,” he said.

Newbold noted that strong payouts also boost the wider rural community, creating a ripple effect across the sector.

The kiwifruit sector is also rebounding after a sluggish period, with rising buyer interest and steady returns.

While there’s optimism in these markets, sheep and beef properties remain slower to sell, with vendors needing to adjust pricing expectations.

Amid government goals to double primary sector exports, Newbold discussed the possibility of renewed dairy conversions.

However, he didn’t expect a significant swing in this direction, given the increasing scrutiny on environmental issues.

“If the stability and the price where [the dairy industry] sits at the moment maintains itself, then there will be potentially the odd conversion, but I don’t think it’s going to come in big numbers,” Newbold said.

Regarding the best time to sell farms, Newbold emphasised the importance of regional factors but suggested autumn as an attractive season for listings, particularly in the North Island.

“I always think that farms look their absolute best in the autumn season — providing you haven’t come through a summer drought, of course,” he said.

Also in today’s interview: Newbold commended PGG Wrightson’s stock agents for their work with the IHC Calf and Rural Scheme — a long-standing initiative supporting rural communities, of which Mackay is the current ambassador.

“I think it’s just a wonderful thing we’re involved in,” Newbold said.