Archive for January, 2011

Comment on REINZ Statistics to December 2010

Recently Morice Ltd were asked to provide comment on the REINZ Statistics for the three-month period to December 2010. The following comments prepared by Mark Morice were published in Hawke’s Bay Today.

• The most important data that can be taken from the REINZ report is the low number of sales that have occurred. In a subdued sales environment the median sale price is significantly influenced by the type and size of property sold, and therefore is statistically a deficient measure when comparing median sale prices.

• In a period of downturn, generally higher quality properties tend sell which results in a higher average sales price due to the type of property being sold.

• Our own in-house analysis of economic sized sheep and beef properties greater than 200ha in the Hastings and Central Hawke’s Bay districts resulted in 7 sales for the 2010 year, considerably less than 17 sales in 2009, 15 in 2008 and 31 sales in 2007.

• The average sale price for 2010 has lifted which resulted from higher quality properties being sold rather than a lift in the land values in general.

• Some further important points to note is that over the previous 10 years, pastoral property values in the Hastings and Central Hawke’s Bay districts have tripled and that a correction in land values was always inevitable given that farm returns during the same period have had a moderate increase, if any.

• Our view for 2011 is that the market will remain subdued and potentially worsen as more property is forced on the market.

• In 2010 the improved lifestyle market has resulted in a reduction in the average sale price along with the number of properties sold. Of significance within this market is that top end and remotely located properties have shown substantial reduction in value with the more desirable areas such as Havelock North and Tuki Tuki Valley maintaining values previously seen.

• Our analysis of the Napier and Hastings districts vacant lifestyle sales in 2010 has shown a 10% decrease in the average sale price from 2009 and a decrease of 26% from the peak in 2007.

January 25, 2011 at 1:41 pm

Oakley Trust

The recent tender of the Oakley Lease, Blackburn, has been successfully completed for a term of six years.

January 25, 2011 at 1:34 pm

Gwavas Station & Willowford Dairy

Bayleys Real Estate are auctioning two interesting Hawke’s Bay properties on 18 February 2011. The properties are the historical Gwavas Station and the recently converted Willowford Dairy. A brief description of the properties follows:

Gwavas Station: Gwavas Station is located at Tikokino, some 20km northwest of Waipawa, and 40km south of Hastings City. It is the first time the property has been to market since the mid 1850’s. It comprises approximately 1000ha of freehold land and a further 178ha of leasehold land. The property is noted for its very good infrastructure and a favourable balance of near flat land. It is currently utilised for intensive bull beef and sheep finishing with some cash cropping. For further details visit

Willowford Dairy: Willowford Dairy is located at Willowford, some 50km west of Hastings City. It is a third-year dairy farm conversion completed to a high standard. It benefits from a 60-bail rotary cow shed with cup removers and individual cow monitoring, two herd homes and approximately 240ha of the 320ha milking platform being irrigated. Willowford also comprises a very good infrastructure of other buildings, and is geographically closely located to the dairying district of Patoka. For further details visit

January 20, 2011 at 1:04 pm


January 2011

Posts by Month

Posts by Category