Property report: Outlook positive for rural real estate market

Peter Newbold, general manager PGG Wrightson Real Estate.

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Following an extended sluggish period, the rural property market is showing signs of recovery, with increased buyer activity driven by a more positive economic outlook.

That’s the sentiment expressed by PGG Wrightson’s General Manager for Real Estate, Peter Newbold.

Speaking to The Country’s Rowena Duncum, Newbold welcomed this month’s 50 basis point cut to New Zealand’s Official Cash Rate (OCR), and the potential for another drop in November.

“When you add that to other things [like] inflation coming under control, the mood of the country with all those wonderful sporting [wins] taking place…and weather – the sun’s out – I just think…it will create more activity.”

Newbold said he had already noticed an increase in buyers returning to view properties multiple times.

He felt that, on the other side of the ledger, the combination of positive signals could also have a bearing on those who had been holding off listing their property.

“People who were waiting for better conditions are now seeing opportunities.”

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However, Newbold again emphasised that vendors must adjust their price expectations to meet the current market conditions, especially with an increased range of properties now available.

“If you’re not realistic, you’re not going to sell,” he warned.

Looking at specific sectors, Newbold said demand remained high in the dairy sector, but noted that there was still a limited number of dairy properties currently on the market.

“Out of all the sectors, that’s probably where we could do with some more listings,” he said.

In contrast, Newbold said the sheep and beef sector was well represented in the market – which could pose its own challenges.

“There’s a lot of sheep and beef properties for sale out there - the challenge will be, are there too many to meet the market demand?”

However, he noted an uptick in the number of existing buyers in the market who have expressed a desire to buy support blocks or land to add to their current properties.

Activity in the horticulture sector remained sluggish, Newbold said.

However, he was confident it would “slowly chip away” in the months to come.