Farming upturn reflected in sales

Press, 29 July 1989, Page 1

Farming upturn reflected in sales

By

SUZANNE KEEN

A renewed optimism in farming is reflected in the latest farmland sales figures for Mid and South Canterbury, says the president of Mid-Canterbury Federated Farmers, Mr Eddie Glass.

Statistics show that sales reached record levels in the six months to June with 119 properties fetching a total of $26.8M. This was more than double the volume of most other comparable periods in the last five years. Mr Glass said the figures were no surprise to him. Land prices had increased and owners who had avoided selling when values dropped dramatically several years ago were now putting their properties on the market. Although some of the buyers were from overseas, a number were local farmers. There was more finance available for farm mortgages than there had been any time in the last three years, he said. "For the first time in five years there is cause for an element of optimism in the agricultural industry,” Mr Glass said. Dairy prices were up, prices for export malting barley were encouraging, and there was some hope that lamb prices would increase. Nearly $460 million changed hands for farm sales in the first half of 1989, according to Valuation New Zealand. This is 50 per

cent more than in the previous six months and the highest total sale prices for a six-monthly period in more than five years. The district valuer in Timaru, Mr Allen Johnson, said it was obvious that buyers believed the rural decline had halted and that the market had bottomed out. Buyers were more selective and prudent with borrowing than in previous years, he said. There was a good market for strong, well-presented properties. The biggest demand in the Mid and South Canterbury area was for fattening farms, and this reflected increased confidence in the outlook for wool and beef. The district valuer in Christchurch, Mr Cam Hagan, said that although he did not have statistics for farm sales in the area between the Conway and Rakaia rivers, there was certainly a greater buoyancy in the rural market. A number of overseas investors were buying land in the area, including many Australians and one Japanese consortium. "More attractive properties are selling better than they have in the past and there is interest from a wider branch of buyers.”