General confidence to invest in the rural real estate market as we wind into 2021 is incredibly positive. While the challenges that have been present for some time remain, particularly the uncertainly with environmental planning and bank credit, the market is responding, driven off the back of proven returns.
This is reflected in the significant role our primary sector now plays in NZ’s economic recovery as other export sectors recalibrate post impact of COVID -19. In addition, extremely low bank deposits continue to drive investment from the city in favour of the country, notably horticulture.
Demand for quality horticultural land will continue to outstrip supply – particularly for kiwifruit gold where momentum buying for quality orchards has yet to find a ceiling. Origin Capital Partners went to the market seeking $50m for kiwifruit investment and now expects to have $80 -90m. Myfarm had an unprecedented year in 2020 with $185m invested, most of which was in horticulture.
In our local region the land market for traditional sheep and beef hill country farms, remains very strong with forestry and carbon underpinning the market and very solid demand by savvy local famers wanting to expand their farming interests coupled with firm activity from out of town farmers wanting to relocate their farming operations to the East Coast, as well as private investors seeing sheep and beef farms as a long term and guarded investment.
The demand for the lifestyle market continues to outstrip supply with record highs being reached in our local market. A lot of this demand can be attributed to a direct side effect of COVID19 and people reflecting on what is important to them. Two of the main factors are family and wellbeing, with people moving out of the bigger centres looking for that better lifestyle and life balance in the provinces, as well as local demand of families wanting to get some space to raise the family.
So as our landowners look to their own objectives and priorities for 2021, if a land sale or purchase is on the radar, rather than relying on the crystal ball and your New Year predictions, give me a call. At Property Brokers as a company, we have invested more into our rural team the last 12 months, than any time in our 36-year history and its showing in our results. As rural consultants we independently assess every property, with the appropriate marketing campaign options recommended, backed by our national True Team promise and our Strategic Farmlands partnership
Tom Lane
Thinking Rural Real estate, buying or selling? Tom has you covered, marketing all types of rural land, large and small.
