While demand for dairy farms in the district remains subdued with potential buyers being very cautious and watchful, the demand for pastoral land remains steady and there is strong demand for vacant parcels of horticultural land. That strong demand for horticultural land is likely to result in further increases in value, particularly for well-located properties with reliable water supply.
On 7 August 2015 Fonterra announced that the advance payout to dairy farmers for the 2015/16 season would be reduced to $3.85 per kilogramme of milk solids (kgms). That payout represents a 54.7% decrease on the record payout of $8.50 per kgms for the 2013/14 season and the lowest payout since 2002/03 of $3.63 per kgms. The final payout for the 2014/15 season is yet to be finalised but is provisionally forecast at $4.65 per kgms.
Following on from our article Effects of the Global Financial Crisis and The Christchurch Earthquake on Nelson Commercial Property (Outlook – Issue 1, 2015), we also consider it relevant to discuss what effects these two events have had on the motel accommodation market in our region. It’s fair to say that the effects have been significant.
In late 2014 the Tasman District Council (the council) released a discussion document on the Councils proposed funding model for the Waimea Water Augmentation Dam that is to be situated in the Lee Valley. That discussion document was open to public submission.