After the Psa outbreak in November 2010, orchard values dropped significantly, only starting to recover about two years ago. By early in the 2014/15 season, they had fully recovered to levels set prior to the virus and have kept rising since.
"Last October, a good 5.84ha gold orchard sold for $400,000 per canopy hectare. In mid-May, a green kiwifruit orchard sold for close to $400,000 per canopy hectare. In late July and early August, two other green orchards sold for approximately $350,000 per canopy hectare, one in Paengaroa and one in Pyes Pa Rd. These sales are remarkable because the properties are 10 months away from producing any fruit, with no way yet to predict the 2016 harvest," he said.
But by the end of last season, the best presented gold kiwifruit orchards had broken through the $500,000 per canopy hectare mark, already 20 per cent ahead of prices at the start of last season, with $450,000 per canopy hectare for gold orchards now considered routine, he said.
Meanwhile, Te Puke-based PGG Wrightson Real Estate salesman David McLaren recently sold an organic green kiwifruit block that produced 68,000 trays last season for about $300,000 per canopy hectare. And a conventional green kiwifruit orchard with a number of lifestyle features that changed hands for around $40,000 per canopy hectare more than that.
Bayleys Country national manager Simon Anderson said it had undoubtedly seen an increase of people wanting to invest in kiwifruit orchards and that had been reflected in sales.
There had also been an appreciation of value on the back of demand, that was bought about by the better understanding of Psa, he said.
"We have absolutely seen an increase of people wanting to invest and that is not just individuals that is syndicates as well groups of people looking to invest into kiwifruit orchards."
Demand had also stretched longer into the normal season, which was unusual, he said.
"We would normally not have sales in kiwifruit in July and August. But we did get them so that just means there is more demand than supply at the moment.
"We have seen it up to $400,000 a canopy for green." Most of the people buying were in the industry and set to expand or get a bigger investment that could also be done via a syndicate, he said.