Mackay raised the issue of pastoral land going into forestry.
Newbold said the situation was "interesting" and gave an example from Northland where four of the last six sheep and beef properties sold had gone into forestry.
Many former dairy farms in the North were being converted to forestry or horticulture, such as avocados.
Newbold said huge change was happening and, in his opinion, it had gone past the point.
However, it was great for those selling of course, as they get good value for their land.
Big money is also being made from the sale of kiwi fruit orchards in the Bay of Plenty.
Demand was huge and the returns were positive – especially for those retiring and looking at succession plans, Newbold said.
Jamie noted that record prices were being paid for dairy – but this had yet to be reflected in land values.
Newbold reckoned momentum was growing in this market, with more sales coming into the New Year.
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He pointed out that there was often a disconnect between those wanting to buy and those wanting to sell and that plenty of negotiation went on as a result.
Mackay asked whether a drop in residential property prices would have a flow-on effect on lifestyle property prices.
Newbold thought the market for lifestyle properties in provincial areas would stay strong.
Areas closer to cities had definitely slowed and the market seemed to have hit a peak and Newbold said prices may stabilise and even drop.
PGG Wrightson Property of the Week
Arable, lamb finishing and dairy support in Coldstream. Find out more here.
