The Country 24/10/24: Peter Newbold talks to Rowena Duncum

 We take our monthly look at the state of the rural market with the general manager of PGG Wrightson Real Estate.

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Episode Transcript

Speaker 1 (00:00):
Taking a monthly look at the rural property market. Joining
me is GM for real Estate at PDG Rights in
Peter Neubold. Good afternoon you, God half known to you.
Since we last spoke on the country, fifty Banks's points
has been shaved off the OCR We're steering down the
barrel of another decline, hopefully in November. Fingers cross touching.
Would you must be delighted in your line of work.

Speaker 2 (00:22):
Yeah, Look, I think it's quite important actually, And you
know when you add that to other things with you know,
inflation coming under control, and then you think of the
mood of the country, You think of all those wonderful
sporting things that have taken place recently. You know, people
people are on much better space. We've got through that
bad weather. You know, the sun's out, and I just

(00:45):
think all those things, when you add everything up together,
suddenly it will create more activity. And I think the
other thing, which is really important is that there's been
a lot of inactivity over the last couple of years,
and so suddenly people just need to get on with
their lives and move forward. And when they start to
see these positive signals, it stimulates them to do things.

(01:08):
So you know, then suddenly people who wanted to move
on due to age, your succession, or their bodies burned
out or whatever. It's a great opportunity. So I think,
you know, sort of a couple of things have lined up,
which is great, and I think we're going to see
more momentum.

Speaker 1 (01:23):
What have you been seeing in the marketplace over the
past couple of weeks.

Speaker 2 (01:28):
Yeah, it's been really interesting put South on the otago
aside just at the moment, but we've seen a lot
more viewings and I think that's an important piece to
think about. And then tied in that, we've had a
lot of I guess people going back and looking at

(01:49):
properties for the second or third time, so we're seeing
greater numbers looking at property. So that gives us a
clear idea that there's more more interest. And I think
the other thing tours this year coming into it. Because
there's so many listenings on the market and such a range,
it's creating opportunities for a lot more people to look

(02:09):
at properties and purchase. So yeah, a lot of viewings
and tit and with that we've got genuine buyers out
there in all areas.

Speaker 1 (02:19):
Yeah, they sound really engaged if they're going back to
properties multiple times. What about the selling side of things, Peter,
You've mentioned in the past that the sellers need to
be realistic about where the market has shifted in terms
of price point. Are you starting to see that.

Speaker 2 (02:36):
Here we are? Actually, it takes time, and you know,
you put yourself in a position when you want to
sell a property. You know you always want to get
the best, but the reality is out there at the moment,
there's a lot of choice and a lot of good
properties to look at. If you're not going to meet
the market, will be realistic, they're not going to sell.
So you know, I said to someone the other day, Look,

(02:57):
you know that money, it's just not going to work.
If better to take it off the market. So you've
got to be you know, you've got to be in
a position where you're genuinely happy to sell. And I
think if you look at the purchases at the moment,
you know they just want a fair price offer fear
purchase price. So I think you've just got to be
engaged to meet the market and then you have a

(03:19):
good chance of selling your property.

Speaker 1 (03:21):
Where do you think we're at in terms of the
market cycle.

Speaker 2 (03:25):
Oh, we're definitely are at the bottom. I think this time,
the bottom of the cycle has been a lot longer
than you know if you go back over the years.
So definitely we're at the bottom. We are starting to
come out slowly. But if anyone thinks it's going to boom,
even if the ocr drops again and inflation continues to drop,

(03:45):
it's not going to boom. But it's generally going to
gain momentum. And I think we're going to see spring sales.
They'll come a little bit later, you know. If I
mentioned before Otago and South and you know, the weather's
this come out so people can start looking at properties,
et cetera. So I think it will just be a
little bit slower, but it will just slowly improve. I

(04:07):
think over the next twelve to eighty months, which is
I guess what you want?

Speaker 1 (04:12):
Which areas are standing out for you? Sheep and beef,
for dairy or horticulture.

Speaker 2 (04:16):
At the moment, I think there's a couple of interesting points.
I think there's a real interest in dairy and that's
coming through and out of all the sectors. That's probably
where we could do with some more listings, but definitely
there's interest there. The sheep and beef there's a lot
of sheep and beef properties for sale out there. The

(04:39):
challenge will be, you know, are there too many to
meet market demand. We're seeing also a number of I
guess existing buyers and market coming back wanting to buy
support blocks or adding to what they've already got, so
I think that's probably the key thing. Horticulture A little
bit too soon to tell just yet, but I think,

(05:01):
you know, again, hawk's been slow for a couple of years,
so I think with a lot of these areas, we're
going to see all of them slowly chip away, which
is good.

Speaker 1 (05:10):
Peter Newbowl GM for real Estate at PGG Rights and
always appreciate your monthly look at the rural property market with.

Speaker 2 (05:17):
Us go well, yeah, hey, thanks very much. Never a
good afternoon,