This year’s Fieldays will prove to be a highly positive one thanks in part to what has proven to be one of the most benign autumns and continuing strong returns in the agri-sector.
Bayleys Waikato Country Manager Mark Dawe says Mystery Creek proves an invaluable opportunity for New Zealand’s most respected real estate company to connect with past, present and future clients from around the country.
“For us, having 130,000 people passing through Mystery Creek over four days provides a wonderful opportunity to show rural New Zealand what we are about, and to discuss their plans now and in the future - it would be very, very hard to connect with such a large number of people any other way.”
“Having 130,000 people passing through Mystery Creek over four days provides another way of showcasing some of the amazing opportunities available in the rural sector - whether that is for lifestyle or farming properties."
The fieldays come at the end of the farming year, one Mark says has proven to be interesting from a real estate perspective.
“Despite dairy farm sales over the Waikato being down slightly on last year, as a company our proportion of sales is up, as people recognise the reach Bayleys can provide out to prospective buyers. Mystery Creek is really part of that.”
As the dairy sector recovers from the low returns of two years ago, Mark says the market is starting to exhibit some clear patterns around land values and buyer preferences.
“The ‘tier 1’ type properties in prime dairying areas based on location, soil type and contour continue to see strong interest. But that interest is more limited for those properties you would categorise as ‘tier 2’ in terms of contour, soil or location, or perhaps their infrastructure is of a lower standard.
“It is very much a case of the cream coming to the top, and those areas like Matamata, Morrinsville, Te Awamutu and the edges of Hamilton are very much in that category.”
Real Estate Institute of New Zealand (REINZ) data indicates overall national farm sales are down slightly, by 11% for the three months to April this year, compared to last year.
The REINZ all farm price index indicates a rise of 2% on the same period last year. This adjusts for differences in farm size, location and type, providing a more accurate measure of true value than straight median price comparison.
Finishing farms have proven the big winners in terms of value over the past year, rising 15% over the 12 months to average $29,427 a hectare.
In past months Bayleys has witnessed continuing strong interest in Waikato dry stock properties, with buyers keen on farms with reasonable scale of over 3000 stock units.
Two recent sales in the Te Miro and Cambridge region have averaged in the $20,000 a hectare range, with prices buoyed by their proximity to schools and good infrastructure.
Auction remains the preferred means of sale for farmers, with strong attendance reflecting buyer confidence in the pastoral sector which continues to enjoy solid to strong returns across all stock types. Lamb prices in particular have touched record highs for the season, and prospects are strong strong for this continuing in light of tight supplies to buoyant global markets.
Mark also welcomed the recent announcement from Fonterra that the 2018-19 payout would kick off at a forecast $7/kg milk solids, putting the industry in a positive frame of mind as the farming year commenced.
This accompanied continuing good news coming out of the horticultural sector, with kiwifruit underpinning land values in the Bay of Plenty.
The latest pool of SunGold licences has seen a record $265,000 a hectare bidded by growers to plant the high value, high demand fruit across another 700ha of land.
The properties exhibited by Bayleys at this year’s Fieldays will include both lifestyle and farms and those interested will have the opportunity to examine the properties online and in the Bayleys Preview and Rural Insights magazine published specifically for Fieldays.
“We are confident anyone with an interest in a quality rural property, be it lifestyle or farm will find something that will inspire them to look further.
“We are confident anyone with an interest in a quality rural property, be it lifestyle or farm will find something that will inspire them to look further."
“The opportunities in the sector have never been greater, whether that is for lifestyle and/or farming opportunity,” says Mark.