Waikite Valley farm sells for record price

RECORD BREAKER: The Waikite Valley farm. SUPPLIED

A Waikite Valley farm sold at auction this week for $3.51 million, or more than $45,500 per hectare, a local record price for a drystock property.

Graham Beaufill of PGG Wrightson Real Estate, Rotorua marketed the 77 hectare property, which is 22km south of Rotorua. He said the sale value was substantially more than local dairy farms had achieved recently.

"We have been pleased with any dairy property that has sold in the past few years in the region of $37,000 per hectare, so to sell a drystock property at such a high value is exceptional," he said.

Of eight interested parties, three bidders participated in the 5 March auction, which was conducted by PGG Wrightson Real Estate auctioneer Sloane Morpeth. Mr Beaufill said the two bidders left fighting out the sale both neighboured the property.

"Both intended to add the farm to their own property, extending their existing milking platform, and in the end one came through. We understand the successful bid was made by a neighbour's son and wife as their purchase, to add to the family unit, so it is particularly pleasing for this property to go to a young couple as their first farm," he said.

While the farm did operate as a dairy property until 2006, and included a small decommissioned dairy shed, in recent years it has been used as a beef unit.

Mr Beaufill said the sale illustrated the current strength of the local rural property market.

"Despite what the payout forecast has done over the past six months, confidence in the Bay of Plenty dairy sector has remained buoyant through the summer, resulting in sales at strong values. Although this was not a dairy farm as such, its price, and location in a desirable dairy district, means this sale is clearly related to that trend.

"Farm listings are short in the region at present. Whether dairy or drystock, those who do offer a farm to the Bay of Plenty rural property market should expect a favourable reception. Buyers are highly motivated, as amply demonstrated by this sale," he said.