PGG Wrightson predicts strong spring
PGG Wrightson Real Estate predicts strong spring selling season
While other sectors of the real estate industry are becalmed, a leading rural property professional says farm sales are progressing apace.
Stuart Cooper, general manager of PGG Wrightson Real Estate, said the rural property sector is in good shape.
“From our observation, as the market leader and only nationwide operator in the sector, rural property sales are steady and prices are holding up well. The underlying movement in rural property is all positive, particularly with regard to large scale properties.
“Strong milksolid prices and good returns for dairy farmers are a key driver, but dairying is only one part of the picture.
“Compared to most other investment options, rural property is well supported at present, and with abundant justification. On the back of recent international food commodity price rises, dairy and arable land has been changing hands at unprecedented values over the past 12 months.
“Indications are that meat prices are also on course to take a sustained upward turn. We are already seeing the impact of that, with the real estate market preparing to similarly improve the outlook for pastoral properties,” he said.
PGG Wrightson farm sales for the three months to July continue to rise, and prices remain strong.
Stuart Cooper says the outlook is extremely positive.
“A picture is emerging of continued growth in sales activity through and beyond the spring. This is particularly marked in the number of large scale properties coming to the market much earlier in the year than has been the case in the past.
“Traditionally, rural property sales dip in the winter, as farms do not look their best in rain or snow and vendors hold back on listing until spring. This year we are seeing vendors come to market in spite of the poor weather, particularly those looking to sell large scale properties. This is not a regional trend, it is happening right across the country, and is matched by enquiry from prospective purchasers.
“A significant part of this trend is that it is not just dairying or arable properties that are coming to the market. There has been a sharp increase in both listings and enquiry for large scale sheep and beef properties as well.
“We are looking forward to a very busy campaign in the coming months, both in terms of number and quality of listings. We are preparing to bring some really exceptional rural properties to the market in the lead in to spring,” he said.
Stuart Cooper says PGG Wrightson Real Estate has been on a recent recruitment drive in order to meet anticipated demand.
“We have market share of more than 30 per cent of the rural property market, and climbing. We are a public company with a very strong brand in the rural sector and well-developed systems to market properties to farmers across the whole country, which makes us unique. Those factors are good news for our clients, of course, but are also increasingly recognised by many in the rural property sector, who are attracted by the advantages of working within such systems and with the PGG Wrightson brand behind them,” he said.