The record-breaking “Three Springs” farm near Methven which sold for $57,112 per hectare.

August 23 2017

The final bid of $8.25 million for a 144 hectare farm near the Mid Canterbury township of Methven has broken the record for arable land values.

The Three Springs farm – owned by the same family for almost 90 years – sold at an auction last month for a new mark for the province of $57,112 per hectare. The final bid of  $8.25m was before sales tax was added.

Several bidders attempted to buy the farm, pushing the final price up. The new owners were not disclosed by Bayleys Canterbury, which marketed the property under agent Pete Hayward.

The irrigated farm had grown a mix of grasses, wheat, and barley and previously potatoes, with income boosted by sheep and beef grazing.

Three Springs farm came with a four-bedroom home with triple garage and outside buildings and grain silos along with a three stand woolshed and cattle yards.

The record sale for arable land in Canterbury, which is the home of arable farming, followed the sale of a similar arable and lamb finishing farm in Ashburton. The 148 hectare property known as Moorepark sold at auction for $7.9 million, excluding GST, which worked out to be $53,328 per hectare.

The irrigated property had been yielding above-average crops over the past five years and also attracted a large audience when it was sold by Bayleys at Hotel Ashburton.

Bayleys Canterbury director Ben Turner said the two sales reflected the confidence shown by buyers for “tier one” farms with a good location, top soils and reliable irrigation.

He said the sales of Three Springs and Moorepark farms had rounded off a successful autumn selling period, which had seen Bayleys sell 38 Canterbury farms for a combined value of $214 million.

The units included dairy farms, intensive arable units, dairy support blocks, and hill and high country properties.

“The appetite for tier-one quality rural productive properties throughout Canterbury remains high, with a pool of some $150 million in purchaser funding still on our books looking for opportunities as a result of missing out on the land which has transacted,” he said.

– Stuff