A lot of sales at a certain level were going to off-shore buyers as well, Newbold said.
Mackay asked if interest rates were also on the same trajectory.
Higher interest rates were having an effect across the board, but it was less of an issue for rural than lifestyle, Newbold said.
However, the biggest impact was on values, and vendors needed to look at their expectations, as buyers weren’t going to overpay, he said.
“It all depends on the region and the sector but there’s definitely some revaluing going on.”
Mackay pointed out that sheep and beef property values, especially on more marginal land, were probably being insulated by carbon farming and forestry.
He asked if it was the same scenario for dairy.
Dairy was looking really good, and the prices achieved were in line with last year, Newbold said.
In the “sweet spot” - between $5 and $10 million - there was quite a bit of activity, with some vendors looking at splitting up larger dairy properties, he said.
Mackay asked about the horticulture sector where there had been a few issues, such as labour shortages, disease and difficulty with shipping.
Newbold said the horticulture sector had been slower than expected with some pressure on values.
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While there were a lot of buyers, they weren’t prepared to pay last year’s prices - which was something vendors should bear in mind, he said.
Looking at lifestyle properties, Mackay said they were all the go post-pandemic as people wanted to get a bit of space away from other people.
Now the market has taken a U-turn, Newbold said.
There were probably more quality lifestyle properties available right now but the peak was a year ago, he said.
“The prices achieved then you will not get today.”
Newbold said a lot of this was down to interest rates and, again, vendors needed to be realistic.
