Latest / The SME Stream / The Country 22/01/26: Peter Newbold talks to Jamie Mackay

Transcript

The Country 22/01/26: Peter Newbold talks to Jamie Mackay · The SME Stream

• 0:00
  Speaker 1: Monthly here on the country, we tell you how much
• 0:03
  Speaker 1: your farm is worth, and it's a fair bet to say,
• 0:05
  Speaker 1: Peter Newbold GMFPGD rights in real estate, is it worth
• 0:09
  Speaker 1: a bit more this month than it was last month?
• 0:12
  Speaker 2: Yeah, it's interesting, Jamie. You know, the last probably eight weeks,
• 0:16
  Speaker 2: we've seen a lot of momentum and probably some of
• 0:19
  Speaker 2: the sales and the actual results I think all through
• 0:22
  Speaker 2: the country have been well ahead of where everyone anticipated.
• 0:26
  Speaker 2: And I see the momentum continuing. And when you look
• 0:31
  Speaker 2: at a look ahead at all the listings come into
• 0:35
  Speaker 2: the market, and I guess we're buyers headspaces. I think
• 0:39
  Speaker 2: it's looking really really good.
• 0:41
  Speaker 1: Traditionally, autumn is the best time, well the most favored
• 0:45
  Speaker 1: time to sell your farm, list your farm, So if
• 0:47
  Speaker 1: you're thinking about doing that, you really need to be
• 0:49
  Speaker 1: getting prepared right now.
• 0:52
  Speaker 2: Yeah, well that's right, And that's one thing we have
• 0:54
  Speaker 2: seen is a lot of activity in that with autumn
• 0:57
  Speaker 2: sales being prepared. And I think we'll see your number
• 1:01
  Speaker 2: come to the market early and I think that's where
• 1:04
  Speaker 2: we're going to see some real momentum in and around
• 1:07
  Speaker 2: the sheep and beef sector. And you know, if you
• 1:09
  Speaker 2: look On the other side, all those farm returns are
• 1:11
  Speaker 2: looking really strong and that's only going to assist that
• 1:14
  Speaker 2: segment which has been I guess, you know, pre November
• 1:17
  Speaker 2: has been a little bit quiet, but we've seen over
• 1:20
  Speaker 2: the last couple of months some real activity there.
• 1:22
  Speaker 1: I heard one of your agents down on Southland speaking
• 1:25
  Speaker 1: on the local Hokkanui show talking about dairy farms. He
• 1:28
  Speaker 1: can't get enough, he said, he hasn't got any to sell.
• 1:31
  Speaker 1: As soon as they come to the market, they're selling.
• 1:33
  Speaker 2: Is that correct, Yeah, pretty much so, and especially the
• 1:37
  Speaker 2: quality ones. There's a lot of interest. You know, I
• 1:41
  Speaker 2: guess that buyer paul is strong and you know you've
• 1:45
  Speaker 2: just seen recently, you know, the dairy price is firming again.
• 1:49
  Speaker 2: So look, that market strong and there's a lot of
• 1:52
  Speaker 2: people that are wanting to get into it. So yet, no,
• 1:55
  Speaker 2: he's one hundred percent right.
• 1:56
  Speaker 1: Sheep and beef of course on a bit of a
• 1:59
  Speaker 1: high at the moment, in fact, on a real high.
• 2:01
  Speaker 1: Is sheep and beef prices have never been this high?
• 2:03
  Speaker 1: Is that reflecting an interest in farms and farm values?
• 2:08
  Speaker 2: Oh? Look, I think it's one of the key drivers
• 2:10
  Speaker 2: at the moment is that you know, you know yourself.
• 2:13
  Speaker 2: You go out into the field now and you know
• 2:15
  Speaker 2: a lot of farmers have got a you know, a
• 2:17
  Speaker 2: big smile in their face. They're enjoying things and long
• 2:20
  Speaker 2: mat continue, And definitely it's having impact on people wanting
• 2:25
  Speaker 2: to either you know, expand their current footprint or get
• 2:29
  Speaker 2: into that industry. And if you look ahead, you know,
• 2:32
  Speaker 2: all those indicators look really strong. So yeah, it's had
• 2:35
  Speaker 2: a big impact on the sheep and beef sector and
• 2:37
  Speaker 2: I think it will continue, which is great.
• 2:40
  Speaker 1: I was in the Bay of Plenty last week and
• 2:42
  Speaker 1: doing a bit of talking about key we fruit see
• 2:45
  Speaker 1: there's an industry on a bit of a high at
• 2:46
  Speaker 1: the moment.
• 2:48
  Speaker 2: Yeah it is, and you know we've often talked about
• 2:50
  Speaker 2: it and we're just starting to see science now of
• 2:54
  Speaker 2: properties come to the market and interest from buyers. So
• 2:59
  Speaker 2: it's been you know, probably slow that in that respect,
• 3:02
  Speaker 2: but now I think everything's settled and I think we're
• 3:04
  Speaker 2: going to see quite a bit of activity in that.
• 3:07
  Speaker 2: So if you add up all the various sectors you know, sheep, beef, dairy, hot,
• 3:11
  Speaker 2: they are all in a fantastic space and I believe
• 3:14
  Speaker 2: the future looks really good and it'll help a lot
• 3:16
  Speaker 2: of those farmers who want to retire or they've got
• 3:19
  Speaker 2: succession or want to expand. Things are looking great.
• 3:23
  Speaker 1: What about the elephant in the room? Is this a
• 3:25
  Speaker 1: past thing? Is it history now? The carbon farming, the
• 3:29
  Speaker 1: forestry conversion.
• 3:31
  Speaker 2: I'm gotta be careful here, but I'd like to say
• 3:33
  Speaker 2: hopefully it is. We can't afford any more of our
• 3:37
  Speaker 2: good land to go out to trees. Definitely, though to
• 3:40
  Speaker 2: answer your question, yes, things have slowed. We're not seeing
• 3:43
  Speaker 2: a lot of activity or very little activity in that space.
• 3:47
  Speaker 2: So it's at the moment i'd say it's a bit
• 3:49
  Speaker 2: of a non event.
• 3:50
  Speaker 1: So things are certainly looking positive. And I think the
• 3:52
  Speaker 1: really positive thing about farm seals these days, and it's
• 3:55
  Speaker 1: long over you as well, people are now buying on
• 3:58
  Speaker 1: yield to make rather than for capital gain, and that's
• 4:02
  Speaker 1: long been a bit of a bugbear for farming.
• 4:05
  Speaker 2: Yeah, and I think it's really clear that's what's happening
• 4:08
  Speaker 2: at the moment. And I think the other thing that
• 4:10
  Speaker 2: helps that is if you look at the future, you know,
• 4:12
  Speaker 2: all those indicators look really strong over the next couple
• 4:15
  Speaker 2: of years, So that helps people make decisions and gives
• 4:19
  Speaker 2: them some I guess good feelings about what's ahead, so
• 4:24
  Speaker 2: they're happy to go and invest, and as you said,
• 4:27
  Speaker 2: they're definitely investing on a yield basis rather than a
• 4:30
  Speaker 2: capital gain, so which is good I think long term.
• 4:33
  Speaker 1: Peter Newbold, thanks for time. We'll catch you again next month.
• 4:36
  Speaker 2: Cheers, Jamie