Posts filed under ‘Rural Market’

Ruataniwha Plains Dairy Farm Sale – Terrybank

Terrybank sold by negotiation in March 2016 and was marketed by Pat Portas of Property Brokers.  Situated on Paget Road in Ashley Clinton, Terrybank is a 183 hectare dairy property with a recently constructed 36-aside herringbone, sold in conjunction with a further 34 hectare runoff block situated one kilometre up the road.  The property has a good array of farm buildings; is predominantly flat contour with some small medium country toward the rear of the main dairy block.  An interesting aspect of this sale is it was sold with a water contract to take approximately 500,000m³ of water if the Ruataniwha Water Storage Scheme proceeds.  It is understood this was well received by the market with none of the potential purchasers raising concern about this water contract.  Analysis of the sale is based on an average efficient system producing approximately 175,000kg milk solids with the property selling for approximately $29/MS.  This illustrates good interest for dairy in the local market given consideration of the wider issues currently surrounding the dairy industry.

March 14, 2016 at 3:18 pm

Farm Sale – Manaroa

Marketed by Doug Smith of PGG Wrightson, Manaroa sold at auction on 26 November 2015.  Situated on Puketitiri Road, Manaroa is a 514.5 hectare property of which an estimated 411 hectares are considered effective.  The property has a good residence and array of farm buildings.  A large proportion of the property is of near flat contour with the balance effective area being medium contour.  The steeper portions of the property are primarily in QEII, Pinus radiata or bush and fenced off from the effective area.  This sale illustrates there is still good demand for good quality sheep and beef properties in Hawke’s Bay.

December 4, 2015 at 3:25 pm

Farm Sale – “Springbush”

“Springbush” marketed by Doug Smith of PGG Wrightson, sold at auction on Thursday 20 August 2015.  Situated on Atua Road in Elsthorpe, this is a 357 hectare property of which approximately 315 hectares is effective.  Improvements include a 2006 four bedroom dwelling with office, situated on an elevated site with views over the farm.  The majority of the land is near flat to easy contour with a small area of steeper hill country to the rear.  Much of the property has been re-grassed in recent years with good fertiliser history.  The property also has good infrastructure in place including water system, yards and farm buildings.  The property was purchased by adjoining owners for $4.575M.  This sale further cements the strong land values for sheep and beef properties in Hawke’s Bay at present.

August 21, 2015 at 4:51 pm

Dunloe – Sold at Auction

Dunloe marketed by Colliers International sold at auction on Thursday 30 July 2015.  Dunloe is a 314 hectare bull beef unit located on Waihau Road, Waihau, some 42-45km from Napier/Hastings.  A feature of the property is its very good balance of near flat to easy contoured hill country together with areas of some steeper sidlings.  Some 30 hectares of steeper gully areas have been established in mid-term Pinus radiata.  Building improvements include a comfortable four bedroom dwelling, four-stand wool shed, deer shed, implement shed, hay barn and other sundry buildings.  Stock handling facilities include a set of cattleyards.

The property was purchased at auction by an adjoining owner for $4M.  This sale continues the trend of good market prices for pastoral properties in the Hawke’s Bay locality.

July 31, 2015 at 3:40 pm

Dairy Land to Viticulture

The recent announcement of the sale of Hawke’s Bay Dairies main dairy farm and Rauriki blocks to Delegats for $29,300,000, sets a new precedent for land values in the Hawke’s Bay locality.  The change of land use from dairy to viticulture highlights the versatility of flat land with irrigation.

Analysis of the value of the flat land suitable for planting in viticulture on a per hectare basis is close to $43,000/ha.  There are many factors to consider in arriving at this value including the value of the water consents and any surplus water, the value of surplus land not suitable for viticulture, particularly on the Rauriki block, the value of forestry and the added value of plant and improvements on the dairy farm to a viticulturist.  Our analysis of close to $43,000/ha is well above values seen in the locality in the past.  However as the sale is in close proximity to existing Delegats operations, an adjoining owner premium is also worthy of consideration.

If this level of value becomes the new norm for bare land suitable for viticulture perhaps the Ruataniwha Plains may become a sea of vineyards when the dam proceeds.

May 13, 2015 at 9:19 am

Gruinard Station – Sold at Auction

Gruinard Station marketed by Doug Smith of PGG Wrightson Ltd sold at auction on Thursday 30 October 2014.  Gruinard comprises 601 hectares located on Mackenzie Road, approximately 22km southeast of Havelock North and adjoining the Tukituki River.  Gruinard is a very well presented farm in the central valley of predominantly improved pastures including chicory and plantain.  This is complimented with a balance of medium to steep contoured hill country with a further 30 hectares able to be irrigated by K-line.  The property comprises some 21 hectares of mixed age forestry plantations.  Building improvements include a well maintained, modernised four bedroom colonial homestead set in attractive grounds with fenced tennis court and swimming pool, a three bedroom cottage, six-stand woolshed, workshop, good quality sheep and cattle yards and three hay barns.

Bidding was strong between a neighbour and near neighbour with eventually the near neighbour purchasing the property under the hammer for $6.4M.  This is considered a very good sale.

November 3, 2014 at 3:18 pm

New Zealand Institute of Primary Industry Management Seminar – Understanding Future Opportunities and Challenges for Farmers – Hastings 13 August 2014

A quality seminar was held in August for members, presented by NZIPIM.  Seminar presenters included;  Barry Johnson (Ministry for the Environment), Helen Codlin (HBRC), Rob Brazendale (DairyNZ), Erica Van Reenen (Beef and Lamb), Hugh Ritchie (HB Farmer of the Year), Greg Hart (Sustainable Farming), Duncan McLeod (HBRIC, Water Storage Scheme), Tony Rhodes(Rural Professional), Bruce Wills (Federated Farmers, Past President)

Topics covered related to the regulatory environment within the Hawke’s Bay Region, possible land use opportunities and challenges in the future.

One of the most pressing developments in recent times is the current Hawke’s Bay Regional Resource Management Plan – Tukituki Plan Change 6 which gives weight to the 2014 National Policy Statement for Fresh Water Management and provides a framework for the HBRC to implement the Tukituki Water Strategy. The Board of Enquiry decision (currently appealed to the High Court) incorporates LUC (Land Use Capability) based leaching rates and DIN (Dissolved Inorganic Nitrogen) limits for the management of Nitrogen, restricting the N loss on farm and on a catchment basis.  Farms in the Tukituki catchment shall be required to provide a Farm Environmental Management Plan (FEMP) for properties over 4ha under intensive land use, showing expected nutrient loss and details of mitigation systems for Phosphate and Nitrogen. This FEMP to be reviewed 3 yearly incorporating LUC based on a 4 year rolling average.  Stock exclusion dates restrict stock access to water ways, implemented from 2017.

Reports were provided on the proposed water storage scheme within Central Hawke’s Bay with an over view of developments and challenges for this project.

Sector presentations were focused on productivity, profitability and farming within regulatory restrictions, with emphasis on optimising farming systems to mitigate environmental effects utilising a whole systems approach.

Rural Professionals were encouraged to be engaged throughout the rural sectors to support and enable sound decision making processes.

September 15, 2014 at 12:30 pm

Patoka Dairies (In Receivership)

Auction held at Bayleys Napier office 6 Dec 2013

Ben Alpin and Trig Downs were taken to auction by Receivers PricewaterhouseCoopers on Dec 6 2013.  The auction created significant interest attracting a good turnout.  The properties are situated at Patoka, northwest of Napier City; Hawke’s Bay and have been on the market for the last two years under forced circumstances.

Ben Alpin comprises 351 hectares in total including 290 grazable hectares consisting of some 241 dairy platform 49 hectares of steeper grazable area, the balance including 50 hectares of QEII Bush.  Best production to date includes 209,126 KgMs produced in the 2011/12 production season and is on target to produce 218,000KgMs this season.  A sale price of $5,020,000 was achieved with a number of interested parties bidding, analysis shows a net sale price of $24/kgMs based on best production of 209,000KgMs.

Trig Downs sold after stopping at $7.4M; agents negotiated with the highest bidder and offered the property back to the auction finally selling at $7,500,000.  Analysis of this sale shows a net sale price of $27/KgMs based on best production of 282,000Kgms. The property consists of some 468 hectares with grazable areas of approximately 346 hectares.  These sales are consistent with previous sales in the area, the most recent being other properties sold by the Receivers.

December 9, 2013 at 2:14 pm

Hawkes Bay Rural Property Market Report Spring 2013

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.

November 5, 2013 at 12:26 pm

Hawkes Bay Rural Property Market Report Autumn 2013

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

Key highlights

  • Number of farm sales in the Hastings and Central Hawke’s Bay District for properties greater than 200 hectares are the lowest since 1998.
  • Gisborne and Wairoa Districts farm sales during 2012 again was high with a substantial increase in the average land value per hectare, generally due to higher quality properties being sold.
  • Some recent transactions of dairy properties including a resale in Norsewood equating to a 38% decrease in land and building value over a four year period.
  • An increase in the number of orchard sales near the end of 2012 resulting in a drop in market values with average land and tree values per hectare now around $55,000.
  • Eight cropping sales in 2012 compared to thirteen in 2011 with a slight reduction in land values.
  • 2012 viticulture sales resulted in some forced or near forced sales, particularly of smaller contract grower blocks, which lowered the average land and vine value. The 2013 harvest is looking promising with an estimated 17% increase from 2012 production levels.
  • Land acquired for carbon farming is in minimal demand, with NZU’s reaching an all time low of $1.50 during February. ERU’s are the carbon credit of choice for industrial emitters and foresters with liabilities currently trading at $0.14.  Limited pre 1990 sales.
  • Outlook for 2013 is projected to be steady for most sectors.

April 30, 2013 at 3:14 pm

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