Ongoing demand for rural properties and farms over the next decade would be in stiff competition with a decrease in availability.
This from Property Brokers, which has predicted a shortening of land supply due to changing land use across rural New Zealand.
GM of Rural, Conrad Wilkshire told Rural Exchange there was less land available for farming.
In 2002 there were approximately 70,000 farms across 15.5 million hectares, which had dropped to 50,000 farms over just 13 million hectares this year.
That was a drop of 15 percent.
“If you look at [production forestry and carbon farming] and then you look at urbanisation, and the amount of ground on the town boundary that’s rural land that’s been consumed, these changes are not slowing down. If anything, the demand seems to be as strong as ever,” said Wilkshire.
In fact, some station valuations had even seen a threefold increase over the last few years where they previously had struggled to get offers on the table.
He said the shortening of supply and ongoing demand were two factors that bode well for those with a long-term view and committing capital, reinvesting back into their properties.
“If you’re passionate about farming and you’ve got a long-term intergenerational outlook, the underlying value of the asset is in good shape.”
He said with family farms, asset valuation wasn’t usually top of mind and farm production and farming systems were the priority which would give a good solid platform to make sustainable decisions.
“It is encouraging now for farmers who are reinvesting back in their properties and continue to meet the challenges that are in front of them, to be able to do that with confidence,” he said.
“The underlying outlook for the next five to ten years and the demand for the next five to ten years, it is difficult to find another decade that lines up with the current one in terms of that demand equation.”
Listen to the full interview with Rural Exchange host Dominic George and Property Brokers GM of Rural Conrad Wilkshire above.
Join the conversation over at the REX Facebook page.
This article was produced by TodayFM in association with Property Brokers.
