Families chase lifestyle farmlets as core farm sectors stabilise
While the broader housing market has started 2026 on a softer footing, with modest price movement and subdued sales activity, REINZ’s rural data points to a comparatively stable backdrop for productive farms and lifestyle assets.
New Zealand’s rural property market delivered steady gains in 2025, with buyers favouring productive, well‑established farms, and lifestyle blocks offering reliable returns and long-term resilience, according to the latest rural property report from the Real Estate Institute of New Zealand (REINZ).
REINZ Rural Spokesperson Shane O’Brien (pictured) said performance and reliability remained front of mind for purchasers.
“Across New Zealand, farming sectors displayed varied activity in 2025, influenced by regional strengths, commodity returns, and seasonal conditions,” O’Brien said. “Buyers seem to prioritise properties that deliver consistent performance, with reliable water, proven production, and established infrastructure driving interest.”
Dairy and finishing farms lead productivity-focused demand
The dairy sector was the standout performer for the 12 months to December, with sales rising year-on-year in key regions. Volumes lifted in Canterbury (up 18.2% to 26), Manawatū‑Whanganui (up 84.6% to 24), Southland (up 84.6% to 48), and Taranaki (up 104% to 51).
“Buyers are looking for farms that deliver consistent performance and reliable returns,” O’Brien said. “In both dairy and grazing, properties that combine scale, infrastructure, and sound environmental management are commanding attention. The market is operating in a more stable environment than a year ago, suggesting steady momentum into 2026 for well-developed, productivity-focused farms.”
He noted that “The dairy sector, in particular, experienced its best performance in the past decade, driven by farmgate returns, lower interest rates and favourable growing conditions. Grazing farms followed, also showing steady engagement.”
Finishing farm sales also edged higher across core districts such as Manawatū‑Whanganui, Canterbury, and Otago, supported by stronger lamb and beef schedules. With banks closely assessing serviceability under current OCR settings, demand is strongest for operations with robust cashflow and clear headroom to handle future rate moves.
“Activity in the finishing sector has been steady in 2025, with core districts showing modest growth,” O’Brien said. “With buyers continuing to favour properties that combine productivity, reliable infrastructure, and strong cashflow potential, while drawing careful attention to policy and long-term land use, the market outlook remains measured.”
Horticulture, lifestyle farmlets, and forestry in focus
Horticulture recorded a strong rebound, with sales up to 117 from 84 a year earlier and the median price per hectare up 9.7% to $271,170. Bay of Plenty led activity with 58 sales, up 107.1%.
“Horticulture activity stabilised in 2025, with improved sales in selected regions and prices aligning closely with productive capacity. Stronger export returns supported interest in established orchards with proven yields, modern plantings and secure water access,” O’Brien said.
At the same time, he warned that viticulture faces “margin compression and weak global demand for wine” and that “there are no new buyers entering the market.”
Lifestyle-focused farmlet sales were strongest in Auckland (up 22.4% to 644), Waikato (up 19.7% to 923), Canterbury (up 21.6% to 721) and Northland (up 4.2% to 543), reflecting ongoing demand for rural living near major centres. Forestry sales rose 22.2% to 66 nationwide, though new regulations are expected to cool activity in 2026.
Heading into 2026, REINZ expects a cautious but steady rural market, with capital targeting operational performance, efficiency, and proven resilience rather than rapid expansion.
To access the full REINZ report, click here.
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