Shane O'Brien: REINZ Director and Rural Spokesperson comments on 'farm sales' across the country

New data has been released on 'farm sales' across the country.

The real estate institute highlighted confidence in the primary sector - with buyers focusing on 'infrastructure and productivity.'

Waikato topped dairy sales for the year ending in September - up 18% to a total of 59% - followed by Southland, up 110% with 40 sales. 

REINZ Director and Rural Spokesperson Shane O'Brien told Mike Hosking that although dairy is front-and-centre of kiwi farming, other sectors are benefiting as well.

'we're seeing some good activity and rebound in the market and the horticultural sector.'

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Episode Transcript

Speaker 1 (00:00):
New data on farms sales. So the Real Estate Institute's
telling us WYCAT her top dairy sales for the year
ending September that's up eighteen percent, Southland up one hundred
and ten percent, if you can believe it, manumatu wang
and Nui medium price per hector is up almost fifty
eight percent. So Shane O'Brien, real Estate Institute Director rural spokesman,
is whether Shane.

Speaker 2 (00:18):
Morning, Good morning, Mike.

Speaker 1 (00:19):
So broadly, can we say sales are up end prices
are up?

Speaker 2 (00:23):
Yes, you can say that, Mike. That's pretty evident. Right
across the market things are improving nicely.

Speaker 1 (00:28):
And is demand outstripping supply broadly?

Speaker 2 (00:32):
Broadly it is, Yes, it is, Mike. So far in
the season we've seeing strong demand, a lot of the
dairy farms coming to the market and the areas partict
there as you've mentioned, like Ketto, Southland and can to
Be where we're getting multiple offers coming in. So it's
an encouraging sign for saying some real confidence in the market.

Speaker 1 (00:49):
Is it like the house market when things get bullish
and frothy, people go, well, it wasn't going to sell.
But I'll tell you what I'll give it a crack now.
Is there a bit of that or not?

Speaker 2 (00:57):
Oh, definitely, And I think there's been some people so
out waiting for the market to perhaps hit its straps
and we're just seeing that now where we've probably got
more sellers coming to the market this year than we
have traditionally, but they've been waiting for the stir curve.
All dairy, No, not just dairy. I think DA it's

(01:17):
very much front and the center of the market and
is definitely driving it. But we're seeing some good activity
and rebound in the market and the horticultural sector that
are cultures, sillabit sluggers. They've got some headwinds with what's
happening internationally. But no, it's not just the dairy market.

Speaker 1 (01:34):
Does deiry differentiate And the reason I asked this question
is I'm following with interest Sam Whitelocks selling his farm
and that's beef and it's in Hawks Bay and there's
that usual kind of go to the inner plant pine
trees and is it local is foreigners? Is dairy like that?
Does deiry ever get converted or is dairy dairy?

Speaker 2 (01:52):
No? No, that we are seeing more farms being opened
up for a dairy conversion. It's been quite a topical
matter areas such a Southland and Kendby, but we're certainly
seeing more conversion occurring. We had quite a lot a
few years ago. It's pretty much been tempered at the
last three to five years. But it's a part of

(02:12):
the market, but it has been controlled right.

Speaker 1 (02:15):
But you wouldn't go deary to forestry for.

Speaker 2 (02:16):
Example, unlikely your lean classes too.

Speaker 1 (02:19):
Good, okay? And what about the business of local money
the international money.

Speaker 2 (02:24):
The market's very much a New Zealand domestic market at
the moment and perhaps even regionalized. We're not seeing the
great flower capital moving around the country, although it's just
starting that. We're starting to see some North Island buyers
coming to the South Island, which is always healthy for
the market. But overseas buyers with the OIO regulations pretty
much out of the market and.

Speaker 1 (02:44):
The bank of the banks playing ball, are they into.

Speaker 2 (02:46):
It very much a great time to be borrowing money, Mike.
They tell us the banks a lot of farmers have
paid back debt, so you know, also strong cash flows,
so the banks are very keen to get that out
the door again. And yeah, I think that was a
Farmer's freend at the moment.

Speaker 1 (03:02):
I love a good on your show, nice and so
I appreciate it very much. Shana Brian, who's the Real
Estate Institute Director in riddles, folks fist it makes you
feel good on a Friday, that sort of stuff. For
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