The Hawkes Bay pastoral market appears to be at a crossroads looking for some direction. There are currently numerous properties on the market but with a gap between vendors and buyers.
The market has not been particularly active over the last 12 months but prior to that there were several strong sales. Vendors expectations are that buyers will still be at those levels and for the best properties that will probably be the case but for slightly lower quality blocks, buyers are being more cautious. Some vendors may be looking to achieve the 2016 Rating Value level which in some cases seem strong.
Recent sales include:
Beattie Rd 572 ha sold for $3,650,000 or approximately $858 per stock unit
232 Brownlie Rd Wairoa 438 ha sold for $2,500,000 or approximately $625 per stock unit
A recent auction of Melrose Station at Tutira saw a bid of $8.5 million however this did not meet vendor expectations and remains unsold.
We look forward to some additional sales and once a few sales do occur, it is likely the market will gain a better understanding of where the balance between vendors and buyers sits and this should lead to more sales occurring.
The bare land market for horticultural land is very buoyant and at record levels. Recent sales excluding any lifestyle site value have been between $80,000 to $90,000 per ha and we understand a recent tender is well above this level.
An 8 ha apple orchard has just sold at circa $170,000 land and trees, and interest for orchards with favoured varieties is very strong, but few properties have been placed on the market.
The viticultural market is more subdued with several recent sales in secondary locations with a land and vines component of $80-$90,000 per ha. There has been one recent sale of a vineyard on the Gimblett Gravels. This 6 ha block sold for $900,000. Other blocks are currently listed, some including winery operations but while there is interest, these are yet to sell