CHRISTCHURCH - Wealthy farmers looking to diversify their assets are creating a boom in commercial property investment in some cities, say property consultants.
Demand for all types of commercial properties is strong, with record sales reported in some cases.
Agriculture Minister Jim Sutton recently predicted that every farmer in New Zealand would be significantly better off this season because the exchange rate had dropped in comparison with the currencies of key trading partners.
"When we add up the total contribution of our land-based industries [meat, wool, dairy products, horticulture and forestry] to our overseas earnings, we end up with $13.3 billion this year and a projected $16.1 billion in 2003," he said.
In Christchurch, Colliers Jardine general manager Hamish Doig said the outlook for the remainder of the year was excellent, with demand for commercial properties strong across the board.
"Our sales up to the end of May are 30 per cent higher than ever before," he said.
"The rural sector is enjoying a bit of wealth. They have been finding it hard for long enough and now they have more money they are willing to spend it."
Simes commercial division manager Peter Cook said overseas investors, people diversifying from the sharemarket, and businesses were joining farmers in taking stakes in properties worth between $500,000 and $10 million.
- NZPA
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