Property report: Rural market still going strong

PGG Wrightson's GM for Rural Real Estate Peter Newbold. Photo / Supplied

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The Country's Jamie Mackay is joined by PGG Wrightson's General Manager for Rural Real Estate Peter Newbold, to take a look at the rural property market this month.

Mackay said there was only one word to describe the market at the moment - "gangbusters."

Newbold agreed, adding that it had been an incredible past few months for the market and there had been a real lift in farm sales for the first time in a while.

Mackay asked if the out of kilter land prices from the previous "dairy boom" would happen again.

Newbold said he doubted this would happen, as people were more astute.

He thought there would be strong sales, but not necessarily a "boom".

Mackay said people had avoided the dairy market but recent turnarounds had made it a great yield story.

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Newbold added that while it had taken a bit longer than people wanted, there was increased interest in dairy, and banks were looking more favourably at the wider rural market.

The sheep and beef market continued to be strong, but the wool market wasn't "too flash," Mackay said.

Prospect for lamb, beef, and mutton were looking extremely positive and Newbold noted that sales of these properties had been exceptional.

Horticulture continued to be going "great-guns" and no one seems to be selling, Mackay said.

Newbold added that there was no shortage of buyers for horticulture properties.

Banks had loosened the reins on loans in the rural property market and were lending with more enthusiasm, as rural property transactions and interest increased.