June 18, 2025 • 6 mins
How much is your farm worth? We take our monthly look at the state of the rural real estate market with the GM of PGG Wrightson Real Estate.
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Episode Transcript
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Speaker 1 (00:00):
Monthly here on the country, we tell you how much
your farm is worth, and it's probably to be fair
worth a bit more than it was last month. Let's
ask an expert in the field, the GM of PGG
rights in real estate, Peter and Newbolt. Pete really interesting
or enthusiastic inquiry around especially sheep and beef properties at
(00:20):
the moment.
Speaker 2 (00:22):
Yeah, Look, it's been fantastic Jamie. And if you look
at the last I guess a couple of months, we've
had solid sales there and I think one of the
good things is a lot of let's call it older
stock has been cleared, and so that means as we
come into lake winter early spring, we're going to have
a new range of sheep and beef listings. And if
(00:44):
you look at that sector, it's been quiet for two
or three years, and now we're seeing some of those
people being able to move on and do something else.
So I think it's really healthy. And as I said,
we finished off this season as I call it really strong.
Speaker 1 (01:00):
It's been a tough few years in rural real estate.
Has the past year been the best one in the
past decade.
Speaker 2 (01:07):
I wouldn't say the past decade, but definitely you know,
the last I guess you know slump was longer than
normal and we've just come out of it. You know,
this last quarter would be the strongest and probably half
a dozen years. I wouldn't say it's booming because we've
come off a low base. That definitely it's strong and solid.
(01:28):
And if you look at as we just talked about
sheet and beef, and you look at dairy, and then
you look at Kiwi fruit, etc. I think we're in
for a real solid run over the next two to
three years.
Speaker 1 (01:39):
Well, let's have a look at dairy. You know, we've
got a ten dollar payout this year. The prospects anyhow,
at this stage of ten dollars for the coming season
or the season we've just entered into, it's got a
bode well because some of these dairy farms at current
values make for a good yield, a return on your investment.
Speaker 2 (02:00):
Yeah, and look, it's been interesting. You know, there's definitely
been an upturn in dairy sales. We'll see a lot more.
I think the biggest challenges those wanting to purchase, I
think is going to be limited supply, and that comes
back to the returns they're getting at the moment. The
only thing I would say out there is there is
you know there are buyers, but you know they're limited.
(02:20):
So I think that's one of the things we've just
got to look at as we come into spring, is
that you know there will be they will be short
of a supply and then you know you've got limited buyers,
so there'll be an interesting period in that sort of
September October time.
Speaker 1 (02:37):
It's good though, to see that farms are now being
sold on yield rather than the prospect of capital gain.
And we've all been guilty, myself included Peter, of getting
into investments like that with a view to capital gain.
If you're a long term player in farming, it should
be all about yield.
Speaker 2 (02:55):
Yeah, and I think it is now and you definitely
see that with all the purchase that are taking place,
is all about you and capital gains has definitely disappeared,
and I think that's a good thing. So look, I
think it's a it's a healthy space.
Speaker 1 (03:11):
Can I still get a kiw refruit orchard and tapoki
and make money out of it?
Speaker 2 (03:17):
Yes you can. And again that's that's been a quiet
sector for a while, but it's pretty clear now that
We're going to see a number of properties come to
the market as we get closer to Christmas. If you
look at the long term outlook and the Keywi fruit
but like dairy, is really solid. It's a great story.
So I think we're going to see well, I don't think.
(03:38):
I know, we're going to see a lot of activity
as we get into those summer months and into next year.
So that's that's looking really, really good.
Speaker 1 (03:47):
It's a magical food product.
Speaker 2 (03:49):
Key.
Speaker 1 (03:50):
Look. I want to ask you about this one, and
I realize and I appreciate your position here because you're
stuck between a rock and a hard place. Your first
duty in real estate is to get the best dollar
as you can for the vendor. But even though the
government made the announcement in December of last year around
carbon farming, it hasn't stopped. And I really really worry,
(04:10):
and I get criticized for this by some people in
the forestry industry. I'm fine with forestry, but carbon farming
spray and walk away. I think we're headed for an
ecological disaster. I hope I'm wrong on that one, But
you know, the floodgates have not been shut yet. No.
Speaker 2 (04:27):
Look, it's interesting I have no problem with the vendors,
you know, selling their property and the moneys they're getting
for it. Why wouldn't you do that? But when you
look at the what's taken place now, you just I
was just looking the other day. You know, twenty five
percent increase and news killed the season, you know, lambs back,
you know, one point five million. So when you start
(04:49):
to look at that and you look out over the
next few years, that's only going to increase. So I
just think one good thing. I just feel the I
guess the government, power be whatever have woken up that
we need to slow it. But I do worry if
you look out over the next you know, ten or
fifteen years, whether we will go well, we let this
(05:09):
go on for.
Speaker 1 (05:10):
Too long we have anyhow, Hey, just to finish on,
you're not only you're a busy lad, Peter Nubol. Do
you not only run the real estate division, you run
the live stock division as well. And I would imagine
with the increased values for live stock this year that
your team of wonderful agents at PGG Rights and who
give up their time freely. I might add for the
IHC CARF and Rural scheme have had a good year.
Speaker 2 (05:33):
Yeah, look it's been a fantastic year for the business
so and again for our agents. But also that you know,
flows through to all those those farmers out there who
are suddenly getting good returns. And you know, when you
look at it from a country's persepective, you know, rural
is very important. Our farmers are important. I think, you know,
people are starting to realize that if they are, if
(05:55):
they are making money and prospering, then the whole country prospers.
So yeah, it's I think it's a wonderful time at
the moment where everyone is starting to is starting to
make some money and do well.
Speaker 1 (06:06):
Good time to be a farmer. Peter Newbold, thanks for
your time. We'll see you in Dunedin for the French
rugby Test.
Speaker 2 (06:11):
Take care, thanks, Jamie, have a good afternoon.
Monthly here on the country, we tell you how much
your farm is worth, and it's probably to be fair
worth a bit more than it was last month. Let's
ask an expert in the field, the GM of PGG
rights in real estate, Peter and Newbolt. Pete really interesting
or enthusiastic inquiry around especially sheep and beef properties at
(00:20):
the moment.
Speaker 2 (00:22):
Yeah, Look, it's been fantastic Jamie. And if you look
at the last I guess a couple of months, we've
had solid sales there and I think one of the
good things is a lot of let's call it older
stock has been cleared, and so that means as we
come into lake winter early spring, we're going to have
a new range of sheep and beef listings. And if
(00:44):
you look at that sector, it's been quiet for two
or three years, and now we're seeing some of those
people being able to move on and do something else.
So I think it's really healthy. And as I said,
we finished off this season as I call it really strong.
Speaker 1 (01:00):
It's been a tough few years in rural real estate.
Has the past year been the best one in the
past decade.
Speaker 2 (01:07):
I wouldn't say the past decade, but definitely you know,
the last I guess you know slump was longer than
normal and we've just come out of it. You know,
this last quarter would be the strongest and probably half
a dozen years. I wouldn't say it's booming because we've
come off a low base. That definitely it's strong and solid.
(01:28):
And if you look at as we just talked about
sheet and beef, and you look at dairy, and then
you look at Kiwi fruit, etc. I think we're in
for a real solid run over the next two to
three years.
Speaker 1 (01:39):
Well, let's have a look at dairy. You know, we've
got a ten dollar payout this year. The prospects anyhow,
at this stage of ten dollars for the coming season
or the season we've just entered into, it's got a
bode well because some of these dairy farms at current
values make for a good yield, a return on your investment.
Speaker 2 (02:00):
Yeah, and look, it's been interesting. You know, there's definitely
been an upturn in dairy sales. We'll see a lot more.
I think the biggest challenges those wanting to purchase, I
think is going to be limited supply, and that comes
back to the returns they're getting at the moment. The
only thing I would say out there is there is
you know there are buyers, but you know they're limited.
(02:20):
So I think that's one of the things we've just
got to look at as we come into spring, is
that you know there will be they will be short
of a supply and then you know you've got limited buyers,
so there'll be an interesting period in that sort of
September October time.
Speaker 1 (02:37):
It's good though, to see that farms are now being
sold on yield rather than the prospect of capital gain.
And we've all been guilty, myself included Peter, of getting
into investments like that with a view to capital gain.
If you're a long term player in farming, it should
be all about yield.
Speaker 2 (02:55):
Yeah, and I think it is now and you definitely
see that with all the purchase that are taking place,
is all about you and capital gains has definitely disappeared,
and I think that's a good thing. So look, I
think it's a it's a healthy space.
Speaker 1 (03:11):
Can I still get a kiw refruit orchard and tapoki
and make money out of it?
Speaker 2 (03:17):
Yes you can. And again that's that's been a quiet
sector for a while, but it's pretty clear now that
We're going to see a number of properties come to
the market as we get closer to Christmas. If you
look at the long term outlook and the Keywi fruit
but like dairy, is really solid. It's a great story.
So I think we're going to see well, I don't think.
(03:38):
I know, we're going to see a lot of activity
as we get into those summer months and into next year.
So that's that's looking really, really good.
Speaker 1 (03:47):
It's a magical food product.
Speaker 2 (03:49):
Key.
Speaker 1 (03:50):
Look. I want to ask you about this one, and
I realize and I appreciate your position here because you're
stuck between a rock and a hard place. Your first
duty in real estate is to get the best dollar
as you can for the vendor. But even though the
government made the announcement in December of last year around
carbon farming, it hasn't stopped. And I really really worry,
(04:10):
and I get criticized for this by some people in
the forestry industry. I'm fine with forestry, but carbon farming
spray and walk away. I think we're headed for an
ecological disaster. I hope I'm wrong on that one, But
you know, the floodgates have not been shut yet. No.
Speaker 2 (04:27):
Look, it's interesting I have no problem with the vendors,
you know, selling their property and the moneys they're getting
for it. Why wouldn't you do that? But when you
look at the what's taken place now, you just I
was just looking the other day. You know, twenty five
percent increase and news killed the season, you know, lambs back,
you know, one point five million. So when you start
(04:49):
to look at that and you look out over the
next few years, that's only going to increase. So I
just think one good thing. I just feel the I
guess the government, power be whatever have woken up that
we need to slow it. But I do worry if
you look out over the next you know, ten or
fifteen years, whether we will go well, we let this
(05:09):
go on for.
Speaker 1 (05:10):
Too long we have anyhow, Hey, just to finish on,
you're not only you're a busy lad, Peter Nubol. Do
you not only run the real estate division, you run
the live stock division as well. And I would imagine
with the increased values for live stock this year that
your team of wonderful agents at PGG Rights and who
give up their time freely. I might add for the
IHC CARF and Rural scheme have had a good year.
Speaker 2 (05:33):
Yeah, look it's been a fantastic year for the business
so and again for our agents. But also that you know,
flows through to all those those farmers out there who
are suddenly getting good returns. And you know, when you
look at it from a country's persepective, you know, rural
is very important. Our farmers are important. I think, you know,
people are starting to realize that if they are, if
(05:55):
they are making money and prospering, then the whole country prospers.
So yeah, it's I think it's a wonderful time at
the moment where everyone is starting to is starting to
make some money and do well.
Speaker 1 (06:06):
Good time to be a farmer. Peter Newbold, thanks for
your time. We'll see you in Dunedin for the French
rugby Test.
Speaker 2 (06:11):
Take care, thanks, Jamie, have a good afternoon.
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