Hawkes Bay Rural Property Market Report Spring 2013

November 5, 2013 at 12:26 pm

Download a detailed synopsis of the current rural property market with trend graphs showing historical property values.Key highlights

  • Sales of farms greater than 50ha in the Hastings and Central Hawke’s Bay districts are proving particularly slow for 2013 to date and are currently half the total volume experienced in 2012.  The drought at the start of the year had a significant effect on sales turnover.  Average sale price per hectare is slightly back from the buoyant 2012 year.
  • Gisborne and Wairoa sales are relatively slow with sales volume back from 2011/12 that was driven by the forestry industry.
  • Outlook for orchard properties remains in fine balance with long term profitability still the main issue facing growers.  Seven sales to date in 2013 are similar to total sales volume for 2012.  The average land and tree value per hectare has increased some 15% from 2012.
  • Four sales of lower grade cropping properties in 2013 with an average land value of some $37,800.  Prime cropping land still around $55,000 – $60,000/ha.  High demand for bare land orcharding properties to plant new high performing trees.
  • Lower number of viticulture sales in 2013.  The current outlook is positive.
  • 2013 dairy market affected by widespread drought conditions.  The most recent sale is a Patoka property indicating a net sale price per hectare of $16,114 and $21/MS.  Positive market on account of the increased forecast of $8.30 m/s and expected dividend of $0.32 m/s for the 2013/14 production year.
  • Strong demand for mature forestry woodlots on the back of positive log export market.  Log prices are some 12% higher than 2012.  Opportunity exists to reduce contingent liabilities from NZU’s sold by acquiring ERU’s.

Entry filed under: Rural Market.

Waimarama Beachfront Property Patoka Dairies (In Receivership)


November 2013

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