North Canterbury Farm Sales - June 2019
There have been more sales of North Canterbury pastoral properties over the last twelve months than other parts of Canterbury. The market appears to be active and property values are steady.
Several factors that influence this market segment are in play at the moment.
Commodity prices, except for crossbred wool, are high relative to long-term averages and climatic conditions this season so far have been favourable.
Returns have improved and sheep and beef farmer confidence is high relative to other sectors. Banks are willing to lend to the sector.
Most of the recent property sales have been for less than five million dollars. This lower weight of money means a deeper buyer pool, and the North Canterbury sheep and beef market has been less impacted by the absence of overseas buyers.
Buyers appear to be either neighbouring or nearby farmers expanding their operations or the next generation of farmers buying their first farms, often with family assistance.
We are also seeing dairy farmers selling high-value land to buy larger, more extensive properties to become self-contained.
The purchase of land for afforestation appears to be having less impact in Canterbury than other parts of the country, with pastoral buyers mostly outbidding buyers of land for forestry to date. Relatively low carbon sequestration in Canterbury compared to other regions can explain this to some extent:
The forestry market is changing though and recent changes in government policy could see greater demand for hill country for forestry.
For more information please contact:
+64 27 631 1077 | Ryan.Bratty@colliers.com
+64 21 199 4599 | Tim.Banks@colliers.com
+64 21 991 348 | Greg.Petersen@colliers.com