Rural property report: Banks' stronghold continues over the market

PGG Wrightson Real Estate GM, Peter Newbold. Photo / Supplied

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The Country's Jamie Mackay is joined by PGG Wrightson's GM for Rural Real Estate Peter Newbold to take a look at the rural property market this month.

Banks still had a stronghold over the rural property market as credit control got tighter.

This was "probably the most difficult piece of the puzzle" as it added pressure to those around New Zealand wanting to move on with their lives said Newbold.

This was also reflected in recent sales which were a "far cry from where we were in the boom times when the banks were lining up to lend money in 2014" said Mackay.

The exception to this roadblock was sheep and beef properties despite environmental restraints.

The horticulture industry was also being impacted by the banks despite horticulture having a positive future.

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Newbold said there was a lot of positivity in this sector and listings might increase as autumn approaches.

Mackay said there was an increase of land use changes and conversion of properties.

Newbold agreed and mentioned a property in the Hawkes Bay that had transitioned from grazing blocks to horticultural land.

While conversions of properties are not visible to the public, it was still quietly happening and this momentum would most likely continue to grow over the next few years said Newbold.

Also in today's interview: Newbold and Mackay take a look at PGG Wrightson Real Estate's Property of the Week, which is a sheep, beef and deer property in Waikaka. Find out more about it here.