August 14, 2024 • 6 mins
PGG Wrightson's Real Estate GM takes his monthly look at the state of the rural market and pays tribute to a long-time servant of the company.
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Speaker 1 (00:00):
Monthly here on the country we have a look at
the rural real estate market with the GM of PGG
Rights in real Estate, Peter Newbolt. Peter, it's very timely
that we talk one day after Adrian or finally got
around to dropping the official cash rate. I know that
it's not going to make a difference overnight, but it
is going to change sentiment. What do you reckon?
Speaker 2 (00:22):
Oh, look, I think it's massive, and it's as we know,
it's long overdue, and I think it's going to change
people's sentiment and you'd have to think, you know, over
time there will be more of them, and I think
that's good not only for real estate market, but the
wider rural community, which is you know, really under pressure,
and you've got to wonder that you know how that
(00:43):
will go long term. But yet, I guess for where
I sit, I think it's a fantastic move and it
will it will drive change and people will be a
lot happier moving forward, especially if.
Speaker 1 (00:56):
We see another couple of cuts and they're talking about
this maybe in October and November before we head into Christmas.
I think it will change the dynamics, but a lot
of the damage should I say that's been done to
the economy by the Reserve Bank, I think can't be undone.
I hope I'm wrong on that one. Look, Spring is
traditionally the busiest time in the rural real estate market.
(01:19):
The listings come on. Is there enthusiasm. Here's a question
for you, though, Peter. Are there any buyers out there?
Speaker 2 (01:27):
Yeah? Well, Jamie, there are buyers, But I think the
first thing I'd say is our vendors need to be realistic.
And because just because the rates have changed and there's
more positive sentiment out there, it doesn't mean your values
are going to increase. What it means is there's more
opportunities sill your property. So that'd be the big message
I'd be putting out there. There are buyers, but they're
(01:49):
not going to pay over the top, so you need
to be really mindful of where you position your properties.
And we're already seeing it now where we're getting people
coming to us and going, well, you know, what have
you got on your books coming into spring? And so
I think that's encouraging and it's positive. And if I
look at what we do have coming up in spring
(02:11):
and speaking to the people all throughout the country, I
think we'll have a better spring. So I'm a lot
more confident today than I was, say two days ago.
M And as you mentioned, you know, if the rate
changes again, that will only improve things.
Speaker 1 (02:25):
We'll be fair to say. And you've made this point.
It's a buyer's market. It's a real buyers market out there.
Speaker 2 (02:32):
Oh definitely. And I think people need to be aware
of that. And as we just said before, you know,
there are people with money, there are people who want
to transact property, but they're not going to pay over
the top. So we just all need to be mindful
of that. And I often think, you know, you buy
and sell on the same market, that's not a problem.
And you know you sell up and you go and
invest in something else. So we shouldn't be scared about
(02:54):
selling in this market. If you're going to repurchase in
the same market, well the.
Speaker 1 (02:58):
Best time to buy and sell on the same market
is when property values are lower.
Speaker 2 (03:02):
Yeah, correct, one hundred percent.
Speaker 1 (03:04):
Let's have a look at the various sectors, dairies, the
biggest act in town. Are we seeing activity there because
the futures market. For instance, the other day when I
was chatting to Mike McIntyre at Jarden was eight dollars
sixty one. A bit of positivity in that industry.
Speaker 2 (03:21):
Yeah, we're actually seeing a lot more interest. And one
thing I have noticed and we're seeing more existing dairy
farmers wanting to look at adding support blocks to the
existing properties, and tied in with that, we're seeing a
number of those coming to the market. So I think
that's going to be an area where we see a
(03:41):
lot more movement. We will have more dairies come to
the market, and I think there'll be more sales. If
you go to the other sector like sheet and beef,
the key thing will be there is value. You know,
if you if the value proposition is fine, then you'll transact.
I it's not, it won't happen.
Speaker 1 (03:58):
Are we seeing anyone byeing sheep and beef country now
for conversion to forestry?
Speaker 2 (04:04):
No, that's really slowed because the value isn't there, and
so we are seeing a few traditional players in that market.
I guess purchasing, but I think we're the big move
at the moment is is probably in solar and that's
probably the difference. It's probably moved from forestry to solar
and that's probably the big change there, but not as
(04:26):
much activity in forestry as he was, say, twelve months
eighty months ago.
Speaker 1 (04:32):
Jeez, imagine if we were talking I don't know, five
years ago and we were talking about one of the
big major land use changes of solar energy. Amazing, isn't it.
Speaker 2 (04:41):
Oh, it's incredible. And I think the stat I've got
this right. I think something like about eighteen percent of
all OIO approvals in recent times have been for Solary.
Speaker 1 (04:53):
Just to finish on you not only run PGG rights
in real estate, you run the livestock division and tragically
recently you lost a great servant to the industry forty
nine and a half years with varieties.
Speaker 2 (05:07):
Yeah. Look, it's a really sad day, you know, for
his family and I guess our wider team, especially those
in that mid Canterbury area and year fifty years, I
call them lifers. We've got a number in our business.
The sad thing for Victor was that he wanted to
get to fifty years, so you know that's a tough call.
(05:28):
But look, he he did an incredible job for us.
And the other thing, which you know with a lot
of rural people, is he did a lot of good
things in the community and I was sort of thinking.
Two of his great mates and work colleagues, Greg Cook
and John Farrell summed them up as You're always be
remembered as a great fellow with a big heart, in
(05:49):
a sharp, wooded sense of humor, and will be sorely
missed by many. So yeah, it just sort of sums
up life. It's pretty fragile, isn't.
Speaker 1 (05:55):
It, Jamie Peter Newbolt, thanks for your time. Victor Shiker
rest and
Speaker 2 (06:00):
He thanks Jeremie, and you have a good afternoon.
Monthly here on the country we have a look at
the rural real estate market with the GM of PGG
Rights in real Estate, Peter Newbolt. Peter, it's very timely
that we talk one day after Adrian or finally got
around to dropping the official cash rate. I know that
it's not going to make a difference overnight, but it
is going to change sentiment. What do you reckon?
Speaker 2 (00:22):
Oh, look, I think it's massive, and it's as we know,
it's long overdue, and I think it's going to change
people's sentiment and you'd have to think, you know, over
time there will be more of them, and I think
that's good not only for real estate market, but the
wider rural community, which is you know, really under pressure,
and you've got to wonder that you know how that
(00:43):
will go long term. But yet, I guess for where
I sit, I think it's a fantastic move and it
will it will drive change and people will be a
lot happier moving forward, especially if.
Speaker 1 (00:56):
We see another couple of cuts and they're talking about
this maybe in October and November before we head into Christmas.
I think it will change the dynamics, but a lot
of the damage should I say that's been done to
the economy by the Reserve Bank, I think can't be undone.
I hope I'm wrong on that one. Look, Spring is
traditionally the busiest time in the rural real estate market.
(01:19):
The listings come on. Is there enthusiasm. Here's a question
for you, though, Peter. Are there any buyers out there?
Speaker 2 (01:27):
Yeah? Well, Jamie, there are buyers, But I think the
first thing I'd say is our vendors need to be realistic.
And because just because the rates have changed and there's
more positive sentiment out there, it doesn't mean your values
are going to increase. What it means is there's more
opportunities sill your property. So that'd be the big message
I'd be putting out there. There are buyers, but they're
(01:49):
not going to pay over the top, so you need
to be really mindful of where you position your properties.
And we're already seeing it now where we're getting people
coming to us and going, well, you know, what have
you got on your books coming into spring? And so
I think that's encouraging and it's positive. And if I
look at what we do have coming up in spring
(02:11):
and speaking to the people all throughout the country, I
think we'll have a better spring. So I'm a lot
more confident today than I was, say two days ago.
M And as you mentioned, you know, if the rate
changes again, that will only improve things.
Speaker 1 (02:25):
We'll be fair to say. And you've made this point.
It's a buyer's market. It's a real buyers market out there.
Speaker 2 (02:32):
Oh definitely. And I think people need to be aware
of that. And as we just said before, you know,
there are people with money, there are people who want
to transact property, but they're not going to pay over
the top. So we just all need to be mindful
of that. And I often think, you know, you buy
and sell on the same market, that's not a problem.
And you know you sell up and you go and
invest in something else. So we shouldn't be scared about
(02:54):
selling in this market. If you're going to repurchase in
the same market, well the.
Speaker 1 (02:58):
Best time to buy and sell on the same market
is when property values are lower.
Speaker 2 (03:02):
Yeah, correct, one hundred percent.
Speaker 1 (03:04):
Let's have a look at the various sectors, dairies, the
biggest act in town. Are we seeing activity there because
the futures market. For instance, the other day when I
was chatting to Mike McIntyre at Jarden was eight dollars
sixty one. A bit of positivity in that industry.
Speaker 2 (03:21):
Yeah, we're actually seeing a lot more interest. And one
thing I have noticed and we're seeing more existing dairy
farmers wanting to look at adding support blocks to the
existing properties, and tied in with that, we're seeing a
number of those coming to the market. So I think
that's going to be an area where we see a
(03:41):
lot more movement. We will have more dairies come to
the market, and I think there'll be more sales. If
you go to the other sector like sheet and beef,
the key thing will be there is value. You know,
if you if the value proposition is fine, then you'll transact.
I it's not, it won't happen.
Speaker 1 (03:58):
Are we seeing anyone byeing sheep and beef country now
for conversion to forestry?
Speaker 2 (04:04):
No, that's really slowed because the value isn't there, and
so we are seeing a few traditional players in that market.
I guess purchasing, but I think we're the big move
at the moment is is probably in solar and that's
probably the difference. It's probably moved from forestry to solar
and that's probably the big change there, but not as
(04:26):
much activity in forestry as he was, say, twelve months
eighty months ago.
Speaker 1 (04:32):
Jeez, imagine if we were talking I don't know, five
years ago and we were talking about one of the
big major land use changes of solar energy. Amazing, isn't it.
Speaker 2 (04:41):
Oh, it's incredible. And I think the stat I've got
this right. I think something like about eighteen percent of
all OIO approvals in recent times have been for Solary.
Speaker 1 (04:53):
Just to finish on you not only run PGG rights
in real estate, you run the livestock division and tragically
recently you lost a great servant to the industry forty
nine and a half years with varieties.
Speaker 2 (05:07):
Yeah. Look, it's a really sad day, you know, for
his family and I guess our wider team, especially those
in that mid Canterbury area and year fifty years, I
call them lifers. We've got a number in our business.
The sad thing for Victor was that he wanted to
get to fifty years, so you know that's a tough call.
(05:28):
But look, he he did an incredible job for us.
And the other thing, which you know with a lot
of rural people, is he did a lot of good
things in the community and I was sort of thinking.
Two of his great mates and work colleagues, Greg Cook
and John Farrell summed them up as You're always be
remembered as a great fellow with a big heart, in
(05:49):
a sharp, wooded sense of humor, and will be sorely
missed by many. So yeah, it just sort of sums
up life. It's pretty fragile, isn't.
Speaker 1 (05:55):
It, Jamie Peter Newbolt, thanks for your time. Victor Shiker
rest and
Speaker 2 (06:00):
He thanks Jeremie, and you have a good afternoon.
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