The Gisborne pastoral market has been quite strong but influenced in part by a number of neighbour purchases which have increased vendor expectations. To date most listings have been selling however one recent tender despite receiving good interest failed to sell and remains un-sold.
It will be interesting to see if the market remains bouyant. The expectation is that interest rates have bottomed out and returns remain reasonable yet not exceptional. We would not be surprised to see some gentle easing in the next 6 months.
The demand for apple land is also having an influence in the Gisborne region with a consolidation in values for good land on the plains. A recent sale of a slightly outlying block analysed just over $61,400 per ha which is well up on previous levels in this area. We understand the block has been bought to plant into apples.