Wairarapa farm sells for $5.61m

About 60 people attended an auction for The Grange, a much-admired rural property located between Masterton and Carterton.

A 202ha flat, dry-stock farm, described as one of the most admired in the Wairarapa, went under the hammer last week for $5.61 million.

The price was well in excess of its $4.8 million 2011 government valuation.

Brought to the market by Gary Scott of PGG Wrightson Real Estate, Masterton, The Grange is situated between Masterton and Carterton.

Mr Scott said about 60 people attended the auction.

"Bidding was brisk with five different bidders, including two parties bidding by phone. In the end, as often occurs with rural real estate, the successful purchaser was a neighbouring farmer who intends to consolidate The Grange with his existing property, which is used for cropping and lamb finishing.

"At that price, the property exceeded the reserve and also surpassed most people's expectations, leaving both vendor and purchaser satisfied with the outcome," he said.

According to Mr Scott, over the past 12 months, local rural property values have firmed and the number of sales has risen.

"What we have noticed is that South Island farmers are making their mark in the southern North Island. These are people who are committed to sheep and beef farming, who have sold farms for dairy conversion or dairy support in regions where dairying is becoming more prevalent, and recognise the value proposition that the Wairarapa and surrounding regions offers them.

"Their activity in the market has generated demand and consolidated values. While the purchaser and the under-bidder at this auction were both local people, this wider influence was a factor in the price that The Grange reached," he said.

The Grange features a 13-year-old, four-bedroom, two-storey homestead, and was in the hands of the previous owner for about 20 years.