The market for Dairy runoff property received a timely boost on Friday 27th May, 2016 at an Auction held in the Bayleys rooms in Feilding.
Both farmers and bankers have been eagerly awaiting some signals to see how the recent slump in the dairy pay out had affected run off values.
Up for sale was 128 hectare property on Onepuhi Road at Marton currently being used for dairy grazing and beef finishing.
Bayleys Rangitikei marketing agent Pete Stratton reported that over 40 enquiries were received on the attractive flat farm on terraces overlooking the Rangitikei River. Many of these inspected the property and although there wasn't a house on the farm, were impressed with the versatile and free draining soils on offer.
On the day four bidders from throughout the greater region competed for the property, with Bayleys Auctioneer Jamie Madigan selling the farm under the hammer for $3.25 million. Mr Stratton says the successful purchasers intend to develop the farm into an intensive finishing operation over the next few years.
He says this is an extremely strong result in this market, not only for the value achieved, but also the level of genuine interest and strength of bidding. The sale price is 10% over the current rating valuation and equates to over $25,000 per hectare.