Property report: Rural real estate market shows strong growth

Peter Newbold, general manager PGG Wrightson Real Estate.

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The rural real estate market is experiencing renewed activity, with good returns for dairy farming serving as the primary catalyst, according to PGG Wrightson’s general manager for real estate, Peter Newbold.

Speaking to The Country’s Jamie Mackay, Newbold highlighted the strong expected dairy payout as a key factor driving farmers to expand their property portfolios, stimulating demand across the sector.

When dairy farmers were “in good shape”, Newbold said they often looked to expand their property portfolios - which “stimulates the broader market”.

He had recently observed increased activity in sheep and beef properties, as well as smaller lifestyle blocks under both 10 and 100 hectares - something he expected to remain in the medium term.

“If you look out over the next 12 to 18 months, it looks pretty solid.”

Confidence among sheep and beef farmers was also on the rise, supported by stable inflation and strong livestock pricing.

“Putting wool to one side, [farmers are] getting good prices for sheep and cattle - and that’s looking good right into next season,” Newbold said.

Having attended the recent Wānaka show, Newbold said the conversations he had with farmers there reflected that optimism.

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“You generally get a feeling that things are a lot better, and they can see light at the end of the tunnel,” he said.

“I think we’re going to see more activity, and that’ll help because everyone will be in a better space too financially.”

In terms of horticulture, Newbold reported the sector was also showing signs of recovery, particularly in the kiwifruit space – and said his team felt on the cusp of a new cycle.

“We’re starting to see renewed activity and interest in kiwifruit over the last month.

“I think we’re going to see that market move forward, like what’s happened in dairy and sheep and beef.”

Despite the increased activity, Newbold felt land prices remained relatively stable, and buyers were realistically meeting the market.

While unique properties might still fetch a premium, overall values had not seen significant movement.

“Values are staying fairly stable at this point in time,” Newbold said.

Also in this interview: Newbold and Mackay discussed forestry plantings and conversions.