28 November 2011
Forest land values have risen but there have been marked falls for pastoral farming, cropping, horticulture, lifestyle blocks and residential properties Gisborne District Council was told at its monthly meeting last week. Garth Laing of Landmass Technology, the company doing revaluations, told the council that forestry values are increasing both nationwide and in Gisborne, according to an article in the Gisborne Herald. Increased confidence has come from improved returns and ability to trade carbon sequestered in forests.This was evidenced by several 2010/2011 sales, including some changing land use from pastoral to carbon farming. Overall, forestry capital values have increased by 24 percent and land value by 25 percent.
The last revaluation of the Gisborne district took place during the market peak in 2008, just before the global financial crash. Since then, farm prices have taken a dramatic decrease, reflecting economic uncertainty and tighter lending criteria and for the first time in a number of years pastoral land has been bought to plant in forestry.
On a percentage basis, overall capital value for pastoral properties has dropped 18% compared to the 2008 values. Horticulture land values are down 17% and land in grapes, oranges and mandarins have also dropped considerably.
Source: Gisborne Herald