The Wanganui farm market has returned to its normal level of turnover this year with $66 million of farmland changing hands so far this year with the December sales still to come. This equals the same turnover for all of 2011. Research from Bayleys shows this compares with $54 million in 2010, and only $42 million in 2009. Bayleys Manager Pete Stratton says this year’s final turnover by value could end up being close to double the amount sold in 2009.
The Research on the Wanganui Region which includes both Rangitikei and Ruapehu, also reveals that the number of properties sold has increased, while the actual land area sold hasn’t.
In 2009, 25 farms changed hands comprising 7,000 hectares of farmland over 20 hectares in size. This increased to 26 farms and 9,500 hectares in 2010, and again to 29 farms and a massive 14,500 hectares in 2011. This year the number sold is up to 36 farms, but the land area is back again to around 9,500 hectares.
Mr Stratton notes that this is due to the properties being sold this year containing a more even spread of property types and include smaller farm types. For example, four Dairies having changed hands in the Region this year compared to only one last year. As well as that in 2011, five large hill country properties over 1,000 hectares in size, sold in Mangaweka, Hunterville and Taumarunui, reducing the average per hectare value. This year up to the end of November, there have been no farms larger than 1,000 hectares sold, with the largest being the 978 hectare Pukeokahu Station in Taihape.
There have been no stressed sales in the hill country this year compared to a few large ones last year. This is a welcome relief for Sheep & Beef farmers who have weathered the highs and lows of the past four seasons with droughts and financial crisis thrown in, and now most hill country farmers seem to have the banks off their backs. Most expect this years lamb prices to be an over correction from last years high, and are hoping for a more even result next year.
The story does not look as certain in the Dairy sector with a high dollar, this season’s payout and dryer conditions causing some financial unease to the sector. There are also uncertainties around water management costs forecast under the One Plan. It will be interesting to see how the banking sector reacts to these factors alongside the high debt levels in the Dairy industry.
The Bayleys team have been extremely busy in the Wanganui Region this year, and have sold $55 million worth of farmland. That is a whopping 83% of the market. As well as that, recent campaigns have now closed off. These properties include the 208 hectare property at Symes Road, Kai Iwi being marketed by Knud Bukholt, the Okirae Dairy, Run Off and Sheep & Beef farm at Fordell marketed by Knud and Pete Stratton and the Walmac Dairies at Parewanui in Bulls marketed by both Geoff White and Dean File.
Bayleys more recent sales include the 161 hectare Nugent farm at Ngutuwera Road Waitotara for $1.75 million, 145 hectares at Hunterville for $1.3 million and a 288 hectare hill country farm at Mangaweka.
Pete Stratton says the local Bayleys Country team including Geoff White and Knud Bukholt would like to extend season’s greetings to all their past, present and future clients and wish everyone a prosperous and safe New Year.