By ANNE GIBSON property editor
The rural property market is running so hot that one Waikato real estate agent is expecting more than $20 million of farm sales this year.
Bayleys Country Waikato, which established its rural Hamilton office only a year ago, has grown from one staff member to eight and sold $11 million of dairy farms in the past six months alone.
Of that, $4.7 million of dairy farms sold last week, in three big deals for Bayleys.
With a further $9 million to $10 million expected to roll in before the end of the year, the strength of the sector has surprised manager Ian Watson, who says he has seen deals with up to seven back-up offers on the table.
He has calculated that the firm will have sold more than $20 million of dairy farms by the end of the year.
Strong commodity prices and a weak New Zealand dollar are combining to propel farm sales into the stratosphere.
Mr Watson said the sales were evidence that rural property was currently the strongest sector of the property market.
Two of the three properties were sold for their subdivision potential rather than their production value, he said.
The sales mirrored the upturn in the rural economy.
The three sales which went through last Thursday were:
An 82.9ha farm on Morrinsville Rd, about 10km from Hamilton, divided into 42 paddocks, for $1.87 million.
A 64ha dairy farm off Cussen Rd west of Morrinsville, divided into 40 paddocks, for $1.7 million.
A 48ha dairy farm for $1.2 million, which was not sold at auction but sold contingent on the sale of the Cussen Rd property going ahead.
Mr Watson said the Morrinsville Rd property was sold to a Dutch immigrant, who specialised in dairy farming. The other two properties went to established Waikato dairy farmers.
The Morrinsville Rd farm runs 220 Friesian-cross cows and grazes 85 head of replacement stock.
It has mature oaks running through the centre and there is potential to subdivide the land into lifestyle blocks because of its proximity to Hamilton.
A four-bedroom renovated house with in-ground swimming pool is the main residence. The Cussen Rd property supplies the Tatua Dairy Company and milks about 160 cows, with the potential to increase this to 200.
Dairy farms hot property in rural boom
AdvertisementAdvertise with NZME.