No slowing in demand to buy Canterbury farms
Local and international interest in the New Zealand rural real estate market remains extremely strong, defying suggestions demand could soften in the face of the lower Fonterra payout to farmers. Shane O’Brien, national director of Colliers Rural & Agribusiness division, said buyers were taking the medium to long-term view of the dairy industry and were still keenly contesting quality land. “We’re still getting strong enquiry both from local buyers wanting to expand their land holdings as well as from international funds and private investors.” He said international funds wanted to invest in New Zealand farming as part of the global trend to secure food production for emerging Asian economies. “New Zealand has an excellent international reputation for food production, we have world class infrastructure to support on-going investment and we’re close to the burgeoning markets of Asia and India. After Denmark, we’re considered one of the safest economies in the world in which to conduct business.” Colliers Rural & Agribusiness had recently negotiated three substantial off market sales in Canterbury to local buyers. While the deals were confidential, O’Brien said prices were equal to levels achieved over the past two years, reflecting continued confidence in the dairy industry. Buyers were increasingly sophisticated in their requirements, seeking reliable and good quality irrigation along with detailed information on nutrient management status of any given property. O’Brien said Australia’s Free Trade Agreement with China, coupled with its strong government support for investment in the dairy industry in both land and infrastructure, had yet to impact on the New Zealand rural real estate market. “Australia is looking for around $10 billion worth of external investment in their dairy industry and has government support to enable this – they don’t have the same Overseas Investment Office regulations that New Zealand has and their new Free […]