The rural property market ended 2015 on a high note although the market for dairy farms remained subdued.
In the three months to December, 547 farms were sold throughout the country, an increase of 12.6% compared to the same period of 2014, according to the Real Estate Institute of NZ.
The REINZ All Farms Price Index, which adjusts for differences in farm size and location, ended the year up 4.1% compared to 2014.
However the market for dairy farms was more challenging, with 86 dairy farms selling in the three months to December compared to 95 in the same period of 2014 and 121 in the same period of 2013.
The REINZ Dairy Farm Price Index was down by 10.8% in December compared to the same period of 2014.
"An increase in sales volumes during the December quarter confirms resilience and resolute confidence in the rural sector, in spite of difficulties currently being experienced in the dairy industry," REINZ rural spokesman Brian Peacocke said.
"In the wider rural economy, the general tone in the horticultural sector including the kiwifruit and wine industries is strong, the red meat sector is solid, albeit with some pressure on lamb prices, the honey industry is going from strength to strength and new initiatives such as the fledgling dairy sheep industry, is attracting genuine long term investment."
The highest number of sales in the three months to December was for grazing farms which accounted for 41.3% of sales, followed by finishing properties 18.1%, dairy 15.7% and horticultural blocks 12.4%.
The market for lifestyle blocks was also buoyant, with 2277 lifestyle properties selling in the three months to December compared to 1769 in the same period of 2014 and 1687 in the same period of 2013.
Auckland remained the most active market for lifestyle properties accounting for 419 lifestyle sales in the three months to December, followed by Waikato 380, Northland 261, Canterbury 235 and Bay of Plenty 230.
Farm sales
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6 Comments
Once again, the reason for the buoyancy in lifestyle blocks:
- 2277 lifestyle properties selling in the three months to December compared to
- 1769 in the same period of 2014 and
- 1687 in the same period of 2013
is perfectly simple.
These life-sentence blocks are the 'safety valve' ( (the long-missed Hugh P's phrase) for completely dopey urban planning and zoneration nightmares.
And on the other end of the scale in Oz - 70,000ha for $208/ha.
It might have seen land values drop to US$49 a hectare. This deal sets the land value at that close to US$208 per hectare," he said.
http://china.org.cn/business/2016-01/22/content_37638798.htm
Check this out for an Oz haircut.
Mr Nicoletti had hoped to secure $60 million from the sale but it is understood the properties are being sold for between $35 million and $40 million.
Read more: http://www.afr.com/news/hong-kongs-richest-person-li-kashing-linked-to-…
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A company understood to be backed by Hong Kong's richest person Li Ka-shing is close to securing an estimated $40 million deal to buy 68,000 hectares of farmland from one of Western Australia's biggest grain growers John Nicoletti.
It represents the largest single private land sale in the state's history.
Mr Nicoletti has been in negotiations to sell his farmland for more than a year in a bid to pay down his ANZ bank debt while hoping to continue to farm the land under a lease agreement.
Read more: http://www.afr.com/news/hong-kongs-richest-person-li-kashing-linked-to-…
Follow us: @FinancialReview on Twitter | financialreview on Facebook
So it is not like the rural lenders don't have a playbook..
And yet.......
Puts the banking covenant breach in perspective...
Chinese conglomerate Shanghai Pengxin Group is understood to have edged out other rival bidders including firms from China and Hong Kong, as well as a Canadian teachers' pension fund. The sale, believed to be worth around $300 million, could be announced as early as next week, sources close to the deal said.
As foreshadowed by Fairfax Media, the revised deal sees the world's largest cattle farm, the 24,000 square-kilometre Anna Creek, carved out from the sale in an effort to appease Treasurer Scott Morrison. The sale price reflects a $50 million valuation of Anna Creek.
http://m.smh.com.au/business/kidman-sale-imminent-with-shanghai-pengxin…
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