Rural real estate agent for Bayleys Wairarapa, Rob Deal, works mostly in the Tararua area.
Despite milk prices impacting the rural real estate market, Bayleys have sold four dairy farms in Tararua this season.
Pricing levels being achieved for dairy farms are back 10-15% from last year’s peak and Deal is marketing one 478ha dairy farm that has gone into receivership.
He said dairy farms in the region are selling between $20,000/ha and $30,700ha – this top price was achieved for a dairy farm in a sought-after location, south of Pahiatua.
Deal said that was a good price for this season. Two of the dairy farms sold this year (258ha and 78ha and both in Pahiatua) were bought for conversion into dry stock.
One will be run as an Angus stud and the other for beef and lamb finishing. Deal said dry stock land prices have been slowly lifting and now average $5000-$7000/ha, with the odd exceptional sale up to $11,000/ha.
Good value and reliable rainfall are big attractions for dairy or drystock farm buyers to Tararua.
“The advantage we have in Tararua is we’re not starting with the highs (prices) that other areas are coming from,” Deal said.
Bayleys Wairarapa recently sold a 502ha sheep and beef farm near Eketahuna. The farm, mostly hill country with some good flats, successfully sold after just five weeks on the market.
“A big factor in the value of our dry stock farms is the amount of finishing land that they have,” Deal said.
“We’re seeing a huge amount of interest in finishing land for sheep and beef farmers, hence why they’re looking at dairy.”
Deal said many potential buyers are fine-tuning or expanding their existing operations.
Parts of Tararua, especially further towards the coast, can be more isolated. Deal said if that is reflected in price, these areas can be more affordable for first-time owners.
More marginal, isolated parts of Tararua are proving popular for honey production, in conjunction with sheep and beef.
Deal said sales activity this spring and autumn was higher than usual. In most cases people are expanding, retiring or exiting the industry.
“Farms are selling for the same reasons as always and farms are still seen as a good investment.”
NZR Real Estate is marketing a 500ha effective sheep and beef farm at Tinui near Masterton. Just inland from Castlepoint beach, Te Mai Iti is mostly medium hill country with 25ha of flats.
The river terraces are in new grass and suitable for cultivation and 9ha is planted in lucerne.
Extensive development during the past decade is evident in 15km of new fencing and good tracks for quad bike access and stock movements.
Rural sales agent Blair Stevens said this property could be ideal for first farm ownership and has been a great stepping stone for the current owners.
Also boasting a good homestead, workshop, woolshed, plus sheep and cattle yards, the buyer’s guide indicates a price in the early to mid-$2 million.
