Hawkes Bay Rural Property Market Report Spring 2014

10/28/2014
Download a full copy of the report with commentary and graphs.

Key Highlights:
 

  • Regulatory and Compliance has become a major focus within the Hawke’s Bay Region involving the management of water and nutrient use within the Tukituki River Catchment.
  • Sheep and cattle remains steady in sales turnover with a slight lift in average land values.
  • The orcharding market is continuing last season’s trends showing increased profitability, sales to date show a lift of 24% for land and tree values over 2013 levels on limited sales, driven primarily by corporate purchases.
  • Analysis of cropping sales to date show five sales for 2014 with average land value of $59,000/ha with competition from the pipfruit sector driving demand.
  • Viticulture property sales have been at low levels in 2014 to date, however the larger corporate operators are well positioned following excellent harvests over last two production seasons, export sales show a steady recovery in price and volume.
  • Purchase of forestry ‘Greenfields’ land continues to be virtually nonexistent, primarily due to the low price of carbon (currently around $4.20/NZU). At these levels foresters are struggling to compete with the pastoral sector.
  • Hawke’s Bay dairy market increased milksolids production by some 9-10% to the end of September however the drop in payout to $5.30 and changes in payment schedule and peak adjustments will have an effect on mid-late season cash flow. A sale to note in July was that of a 642ha Central Hawke’s Bay dairy property purchased by a Waikato farmer.
 
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