Friday, May 8, 2015
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Property May 8, 2015
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THE INDEPENDENT VOICE OF MID CANTERBURY
Fun times?
The piles of leaves on Ashburton streets may be fun, but concerns have been raised over the council’s FULL STORY P3 clean-up efforts.
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Farm prices may take a hit BY DAISY HUDSON
DAISY.H@THEGUARDIAN.CO.NZ
Ministry to interveneP3
There are fears that further, successive slumps in the milk price could affect farm values if overcapitalised businesses sell-up. Concerns have been raised over the effects of falling dairy prices on Mid Canterbury’s economy, with Reserve Bank Governor Graeme Wheeler saying the drop was “quite worrying”. Mr Wheeler, who was in Ashburton this week talking to local business people, said data showed both dairy prices and farm prices were holding.
However, if farmers experienced a big hit to their income and their farm prices fell, he believed they could get into a “fairly distressed” situation. He also believed a possible surplus of housing over the next five to 10 years could see house prices fall in Canterbury. “It would certainly slow the rate of house price increase,” he said. “The rate of house price inflation is starting to slow because the supply and demand imbalance is starting to come into a better alignment.” Ashburton Property Brokers area
manager Hamish McLeod believed house prices in Mid Canterbury would remain steady in the near future, as any growth was “organic” would not come as a surprise. However, he was less optimistic about the value of dairy farms. “There could certainly be some people that have to sell,” he said. “If people have to sell and more stock comes on the market, that will have an effect on values.”
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