Listen: The strength of rural properties and banking

PGG Wrightson Real Estate GM, Peter Newbold. Photo / Supplied

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PGG Wrightson's GM for Real Estate Peter Newbold joins The Country's Andy Thompson for his monthly rural property report.

There have been good listings particularly with sheep and beef. Newbold elaborates that this is the best year he has seen in the past few years nationwide, and that good stock and consistent prices are a positive sign to move.

With farms across the country looking good Newbold says that spring is the best time to list a property as it helps to show them off.

Thompson brings up that not a lot happening on the dairy front. The price of dairy remains strong but its reputation is implicated by negative sentiments.

Newbold adds sales are bit slower and people are struggling to get their heads around value such as the removal of capital gains and to look at it on a yield basis.

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Thompson raises the issue of banks changing their lending criteria making a lot more work before being able to purchase.

Newbold agrees and notes that it slows the process putting potential owners in a position where they have to think more and do more due diligence.

Horticulture properties are coming in later this season due to weather, but the returns are good and Newbold believes some of the values are breaking records this year.

Newbold notes that with horticulture, particularly in the North Island, there is an increase in change of land use.

Newbold thinks this is distorting values of properties, in particular the dairy industry.

PGG Wrightson's Property of the Week: Waybrooke In Canterbury just south of Ealing, Waybrooke is a well maintained and self-contained property, milking around 1600 cows.

There is a great opportunity to grow with this property - find out more about it here.