Significant increases in value, number of dairy properties

Rural land has made the biggest gain in the latest Central Otago revaluation, with dairy properties increasing in value by up to 40%.

QV southern manager Tim Gibson said the value movement in most sectors was small but the biggest increase overall was in dairy properties.

The number of dairy properties within the district had also increased. In 2010, there were 17 dairy properties and in the latest revision 31 farms were listed as dairying.

''These are concentrated in the Patearoa area, with two at Ettrick and one existing unit and new conversions at Omakau,'' he said.

The biggest rises in values were in properties with good water supplies.

Large-scale irrigation was happening in the Tarras and Bendigo areas, with farm owners developing land for dairy support, Mr Gibson said.

Central Otago Mayor Tony Lepper said the increase in dairy land values came as no surprise. However, he queried the number of properties classified as dairying.

''We [district councillors] had a quick count-up and couldn't get to 31, so we wonder if it reflects properties with two or three titles.''

Mr Gibson said tussock blocks with no irrigation water for stock finishing had maintained their 2010 values, while fattening blocks with limited water showed a 30-40% lift.

Land suitable for dairying was up to double the 2010 values.

''As a general rule of thumb, dryland pastoral runs are selling around $500 to $600 a stock unit and pastoral runs with some finishing potential were selling for $600-$800.

Pastoral fattening farms were selling for about $800-$1000 a stock unit and irrigated properties were fetching from $1200 to $1500 a stock unit.

There had been limited growth in vineyard plantings over the past three years, Mr Gibson said.

''The mortgagee sales seem to have worked through the system and interest in vineyards has seen improved demand and sales of good vineyards now selling slightly above the 2010 levels.

''Locality is important forgrapes, and the best area is regarded to be around Bannockburn, where the most established grapevines are found, with the Bendigo area the next-best favoured area.''

 

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