Dairy and grazing farm sales lead the recovery
New figures from the Real Estate Institute of New Zealand (REINZ) revealed that rural property sales across the country have gained momentum over the past year, with stronger market activity in sectors such as dairy, grazing, and finishing farms.
Dairy farms saw the biggest lift, particularly in Southland and Canterbury, where sales doubled and rose 53.5% respectively. Waikato (136), Taranaki (73), and Manawatū/Whanganui (43) made up much of the remaining volume. Price trends were mixed, with gains in Manawatū/Whanganui (+20%), Waikato (+6.4%), and Canterbury (+4.6%), and declines in Southland and Taranaki (both -14.7%).
“Renewed interest in the dairy sector has been a key driver of the rural market in the past 12 months with an increased payout, favourable outlook and good support from banks combining to enhance farmer confidence to create an active market across much of New Zealand,” said REINZ rural spokesperson Shane O’Brien.
Grazing farms also rebounded, supported by red meat prices and demand for support blocks. Sales grew in Manawatū/Whanganui (+56.8%), Northland (+31.1%), and Southland (+29.2%), while prices followed a similar pattern—up in Manawatū/Whanganui (+21.3%), modestly up in Northland, and down elsewhere.
Finishing farms were most active in Manawatū/Whanganui, Canterbury, and Southland. South Island regions saw higher prices, while North Island counterparts, particularly Manawatū/Whanganui and Waikato, saw double-digit price drops.
In horticulture, sales surged in Bay of Plenty, Northland, and Gisborne, but dropped in Hawke’s Bay. Prices generally fell, except in Marlborough. O’Brien noted continued interest in kiwifruit orchards and a shift toward larger operations, with climate risks and global pricing volatility remaining major concerns.
Arable and viticulture markets stayed subdued. Most arable farm sales occurred in Canterbury, with Waikato the only standout in price gains. Median price per hectare in Canterbury fell slightly to $44,000, while Waikato rose to $60,370. Global oversupply and trade uncertainty continued to suppress vineyard transactions, especially in Marlborough and Hawke’s Bay.
Forestry remained quiet due to low log prices and policy changes restricting new plantings. One exception was Hawke’s Bay, which saw a 63.6% jump in sales and a 27.7% rise in prices. In contrast, Manawatū/Whanganui had the most sales overall but saw steep declines in both price and volume.
O’Brien said recent land use changes have been reshaping the market.
“Much has been publicised about forestry conversions from pasture to trees and government initiatives to stem this... with Environment Canterbury making front-page news with an increase in consents granted and being processed for dairy conversion,” O’Brien said.
Lifestyle property trends varied by region. While Taranaki struggled with high stock, areas like Auckland, Waikato, and Canterbury drew more buyers. Modest price increases were seen for farmlets in most major regions, while bareland results were mixed – up in Auckland, Canterbury, and Waikato, but down in Northland and Otago.
