Farm sales trifecta defies rural real estate trends

The flat state of New Zealand’s rural property market was thrown on its head last week – when three property sales totaling more than $11million were recorded at consecutive farm auctions.

The auctions at the Bayleys Tauranga office saw a range of farm types sell under the hammer following strong bidding on all lots. The properties which sold included:

• A 112 hectare dairy farm near Whakatane sold for $5.1million
• A 170 hectare drystock farm at Waimana, eastern Bay of Plenty, which sold for $2.4million
• An 82 hectare dairy farm near Whakatane which sold immediately after the auction for $3.85million.

All three farm units were marketed by Bayleys Tauranga sales consultant Rhys Mischefski, who said the sales trifecta clocked up in the space of two hours was a complete turnaround from what had otherwise been a sparse year of rural sales in the Bay of Plenty.

“There was multiple bidding on all properties - with the $5.1million farm receiving a massive 55 bids, the $3.85million property receiving 23 bids, and the Waimana unit recording 13 bids,” Mr Mischefski said.

“That’s the sort of interest and bidding activity we would normally expect to see in the proverbial ‘boom times’, so it was rather unexpected to see such strong and sustained followings across all three properties in a relatively quiet market,” Mr Mischefski added.

“While the country market is far from showing what could be termed ‘healthy’ signs of activity, these auctions clearly indicate that for quality properties with vendors who have realistic price expectations, sales can be made.

“The demand for rural real estate is definitely still out there in the country market, but that demand has become far more discerning and price sensitive over the past 18 months as bank funding has become harder to secure.”

In addition to notching up the three farm sales, Mr Mischefski also concluded a $1million sale on a 31 hectare lifestyle block near Whakatane – a deal which had taken three patient years of negotiations between the parties.