Demand for kiwifruit is outstripping supply, causing a jump in orchard sales in the Western Bay of Plenty, which has been described by one agent as “a land grab”.
Figures from the Real Estate Institute of New Zealand show 83 orchards sold in 2014 for a sale median price of $1.015 million compared to 94 orchards in 2015 that sold for a sale price median of $1.33 million.
In the first quarter of 2016, 31 orchards sold for a sale price median of $1.395 million in contrast to 22 orchard sales over the same time frames in 2015 for a median sale price of $1.517 million.
REINZ rural spokesman Brian Peacocke said the horticulture sector in the Bay of Plenty was in “very good heart”.
Quality gold kiwifruit orchards were exceeding previous records while good demand and prices for quality green kiwifruit blocks, while Zespri’s announcement of an increase in licences for gold kiwifruit plantings “is an indication of the strength of the industry”.
David McLaren from PGG Wrightson Real Estate Tauranga said green kiwifruit blocks were selling for up to $400,000 per canopy hectare while gold had been fetching $600,000 per canopy hectare.
Mr McLaren said in his view the trend would continue because of profitability margins which meant “they can still get good returns buying at these levels”.
He recently sold a green orchard to buyers who wanted to convert to G3.
Bayleys national country manager Simon Anderson said the rise in activity was driven by several factors including good demand for kiwifruit overseas and the release of new G3 licences.
Zespri grower and external relations general manager David Courtney said it was releasing 400 hectares of Gold3 licence this year with additional licences expected to be released in 2017, 2018 and 2019.
Source: Fresh Plaza