Amalgamation order of day

Press, Volume CX, Issue 32459, 20 November 1970, Page 9

Amalgamation order of day

“It has been an interesting year with several noticeable trends emerging, the main one being an increasing number of sales made to farmers adding to their holdings by purchasing land adjoining or adjacent to their home properties,” says Pyne, Gould, Guinness Ltd’s 70th “Annual Review” in reviewing land sales in the 1969-70 period. “Economic pressures are such that plant and labour must be used to the full

to produce sufficient income to cover ever rising, and sometimes steeply rising, costs. To achieve this, larger acreages are in many cases the answer and thus, in the 1969-70 period, the largest proportion of properties sold by us were purchased for purposes of amalgamation. “In most cases there was keen competition from neighbouring farmers for such blocks and good prices were paid. “Mixed cropping and fattening units have also been in demand because of their ability to diversify and once again good prices were paid for this type of property. “Foothill country and light land in high rainfall areas have been keenly sought as a result of the emphasis at present being

placed on beef production and as also, in the higher rainfall areas, a more certain result is obtained from topdressing and pasture improvement, which are now too expensive to risk failure from lack of rain. “Tussock runs have always been in demand, mainly because of their low-cost farming structure, but only a small number of this type of unit was available for sale. “There has been a moderate enquiry for light land in low rainfall areas and sales were made generally to adjoining landowners for amalgamation or to farmers in a high rainfall area in search of a block to winter their stock on. “Availability of mortgage money always plays an important role in final-

ising the majority of land deals. Money on mortgage has been available through the usual money lending institutions but advances have remained confined to safe lending margins. Sales in the six figure bracket have been, as in the past, difficult to complete, but where the vendor is prepared to leave substantial sums on mortgage, satisfactory sales have resulted. “During our 1968/69 financial year the number of major sales made by us was 111, but in the last year 144 sales were completed, which must show an increased buyer confidence in land. "Land in New Zealand has always been highly sought after, and with increasing population it seems certain that land values will remain firm.”