Hawkes Bay Rural Property Market Report Autum 2014

4/8/2014

Download a full copy of the report with commentary and graphs.


Key Highlights:

  • Ruataniwha Water Storage Scheme Environmental Protection Authority Board of inquiry final decision is due 29 May 2014.  In our opinion the biggest influence on future land use and land values in the Ruataniwha basin will be the final rules and regulations for the proposed Plan Change 6 which seeks to address specific water allocation and water quality as used in the catchment.
  • Some recent strong sales activity in the latter part of 2013 in the Hawke's Bay and Central Hawke's Bay districts after a recovery period from the 2012/13 drought.
  • Gisborne and Wairoa rural sales over 100ha in a balanced position similar to the Hastings and Central Hawke's Bay districts where quality properties are being met with good demand.
  • The orchard market is showing signs of increased profitability for operators this season with eleven sales at the end of 2013, similar to sales for 2012.  An increase in average productive land and tree values per hectare.
  • Six cropping sales in the Hawke's Bay region to the end of 2013 with an average land value of $41,000/ha.  Some competing demand from the orcharding sector.
  • A lower number of viticulture sales in 2013.  Some activity from larger operators with mergers and acquisitions to achieve a larger scale.
  • Continued low demand for "Greenfields" forestry land.  Log prices are strong, near the record level experienced in 2011. Renewed focus for IRD requirements with the value of standing timber on farming transactions.
  • Hawke's Bay dairy market benefited from favourable growth and production over the previous season.  Strong outlook with Fonterra announcing a further lift in milk prices to $8.65 and dividend of 10c for the 2013/14 season.  Sales of Patoka dairy farms created interest with several offerings sold at auction in December 2013.




 
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