Rural real estate report: The potential of provincial properties

PGG Wrightson's GM for Rural Real Estate Peter Newbold. Photo / Supplied

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

Mackay asked Newbold to crunch the numbers and report on how much the rural market was behind - in terms of volume - in comparison to 2015/16.

In 2015 the rural market was just short of $4 billion in sales, compared to 2020 which was just over $2 billion, "so you can see there's been a real decline" Newbold said.

The rural market continued to be overshadowed by the lifestyle market.

Mackay and Newbold discussed the potential change in attitude towards the rural market; post Covid-19, as those in metropolitan areas looked to move to pastoral properties.

There had been a lot of interest in provincial New Zealand where many towns were supported by the rural industry, Newbold said.

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In addition, the costs of these properties were better value compared to the metro markets, he added.

Mackay asked if some rural properties were starting to stack up on a yield basis and wanted to know if perhaps a few of the more marginal properties were good buying.

Newbold reckoned they were, and the past few weeks had seen signs that a number of listings were on the up and with comparable prices.

Property of the week: 290 Doctors Creek Road, Otekaieke

• Deadline Private Treaty

• 158.6241ha currently leased to dairy concern - one title

• Excellent location, 50km ex Oamaru - 16km ex Kurow

• Gentle/flat to mild rolling contour plus area of steeper country

• Property contains a good portion of arable land plus dryland grazing

Find out more here.