The rural property market is on a positive trajectory driven by commodity prices and global demand for New Zealand produce.
Dairy is to the fore, with plenty of positive signals encouraging farmers to go to the property market. After a few lean years, the kiwifruit sector is well and truly on the rise, with orchard values at near record levels. Exceptional returns for red meat are also motivating sheep and beef farmers to buy and sell land, though some are preferring to hang on and make the most of the exceptional returns they are currently receiving. Meanwhile, the challenges facing grapes, crops and forestry are making property in those sectors more difficult to sell.
Click on the below sections to read each sector update:
- North Island Sheep and Beef
- South Island Sheep and Beef
- North Island Dairy
- South Island Dairy
- Viticulture
- Kiwifruit
- Pipfruit and Stonefruit
- Cropping
- Forestry
North Island Sheep and Beef
Despite a resurgence in red meat returns, while North Island sheep and beef properties with the right characteristics are selling well, the market is still lacking purchasers. Most Hawke’s Bay sheep and beef properties that have sold, for example, have gone to buyers within the region, with only minimal levels of external interest.
High commodity prices have persuaded some farmers, who were previously thinking of selling, to hold off for another season while they take advantage of the elevated returns.
In any location with dairy farms, listings of sheep and beef property will attract interest from farmers motivated to improve the self-sufficiency of their dairy operation. Such properties are in demand for dairy support grazing, to raise calves, for cut and carry, or to winter a milking herd. Over the coming months this could drive increased values for suitable well-located properties.
A 834-hectare Patoka property sold notably in November. Offering genuine scale, along with a full suite of farming infrastructure and a well-maintained homestead, it changed hands for $13 million.
For Hawke’s Bay farms to sell at a similar level in autumn is unlikely, though some vendors in the region are preparing to list in the spring.
South Island Sheep and Beef
Improved red meat prices, lower interest rates and favourable spring and summer conditions have lifted confidence and improved the saleability of South Island sheep and beef properties. Banks are more willing to invest in sheep and beef, and some other investors from outside the primary production sector are also showing an interest.
Notable sales include Weka Pass and Gowan Hill, North Canterbury, comprising 770-hectares; 352-hectare Lower Farm, Hanmer Springs; a 305-hectare Hororata grazing property; Glenside, a 752-hectare Waitahuna, South Otago farm; and 2721-hectare Taieri Lake Station, a breeding property between Hyde and Middlemarch.
Meanwhile desirable autumn listings set to make the most of the buoyant market include 769-hectare Cotswold, Omihi; and Hills Creek and Styx Stations, which span a combined 10,080 hectares and support around 40,000 stock units near Ranfurly.
With restrictions on land use relaxed, dairy support properties are under scrutiny, particularly when they have scope for conversion, which is influencing demand for sheep and beef properties.
Elsewhere, recent sales of South Island farms typically involve neighbours, including various neighbours subdividing a particular property among themselves.
North Island Dairy
Lower interest rates, higher milk solid prices and banks willing to invest have raised confidence in the North Island dairy farm market, with multiple sales concluding early in the season.
Through to Christmas the Waikato market was elevated. Across the board values lifted by about five per cent. Three Matamata properties broke the $70,000 per hectare threshold. Since then, fewer Waikato listings have come to market and values have softened slightly, despite ongoing buyer interest.
Listings of Eastern Bay of Plenty properties offer good returns on capital. A 175-hectare Galatea property averaging 186,000 kilograms of milk solids from 480 cows; and a 176-hectare Edgecumbe property in the same family since 1919 are two examples that will be closely watched.
Buyers are active, motivated by properties with good location, topography, modern improvements, and compliance with environmental and other consents. If any of these criteria are compromised, interest and value will fall away.
Fonterra’s brands sale will put money into farmers’ pockets. While some farmers will prioritise debt reduction, the proceeds are still expected to circulate through the rural economy, including into property transactions.”
South Island Dairy
Reflecting general sector buoyancy, leading into Christmas Canterbury and Southland dairy farms sold well. Several Canterbury sales set new district records, with multiple sales around the $65,000 to $70,000 per hectare mark, while Southland values for the better properties ranged from $45,000 to $48,000 per hectare.
Four separate Rimu and Wyndham properties, totalling 650 hectares, changed hands in November. Each attracted multiple offers before selling to local Southland buyers. Meanwhile, one South Canterbury sale of note, a 127-hectare Temuka property, sold ahead of its January deadline to a local sharemilker stepping up to ownership at $65,000 per hectare.
As red meat returns make fattening cattle and lambs competitive with dairy support, the cost to lease grazing pasture is rising. Following confirmation of Fonterra’s retail brands sale, shareholders may seek to reinvest dividends into dairy support properties. Meanwhile in Canterbury converting support and cropping properties to full dairy platforms has returned to the agenda.
Through 2026 with limited farms for sale, demand will likely outrun the available supply of South Island dairy properties. Numerous potential purchasers have either enquired or recently missed out on buying. Anyone considering exiting the sector should therefore do well, especially taking account of the current elevated price of dairy cows.
Viticulture
While the upcoming grape harvest is shaping to be considerable, with plenty of recent new large vineyard developments in Wairau Valley and other areas now coming into full production, growers are under heavy pressure due to oversupply and rising costs.
Despite favourable autumn conditions pointing to an excellent vintage, years of expansion and a bumper 2025 crop have left the sector oversupplied. As a result, some grower contracts have been terminated and winemakers are enforcing yield caps ahead of the 2026 harvest. Average pricing for this year’s yield is set to drop significantly.
In response to the drop in demand, growers are striving to manage yields down, and reduce cost wherever possible. Rather than cropping them or re-planting, some older vineyards have been left dormant this year. Elsewhere, vines have been pulled out, with pasture replanted, at least in the meantime.
Rather than going to the property market, growers are focused on navigating their current challenges. Engaged in a balancing act around this year’s harvest, where for some breaking even will be the best case scenario, few viticulture property sales have occurred recently, and prospects for that changing soon are slim.
Kiwifruit
Kiwifruit property is in demand. As autumn arrives plenty of fruit on the vine is inspiring some buyers to purchase orchards pre-harvest, guaranteeing cashflow in the first year of ownership.
Banks are generally supportive, especially for established growers with a track record of strong returns. While most sales are between existing growers, Canterbury and Southland dairy farmers seeking to diversify are also showing interest.
As ever, demand is strongest for elite well-located orchards, at good altitude, with established vines. One such Paengaroa property, Roma, comprising 5.5 canopy hectares of G3 with an average orchard gate return of over $230,000 per hectare sold in January for over $1.8 million per canopy hectare, the highest value for an orchard since 2022.
After several years in the shade of G3, enthusiasm for green kiwifruit has also surged, with a quality Te Puke block changing hands in January at $700,000 per canopy hectare.
Interest in bare land for development continues. With the right criteria, including water consents, blocks are selling between $160,000 and $250,000 per hectare.
Zespri’s licence auction this year will again gauge sector confidence, with 400 hectares available. Demand for gold G3 seems reasonably heavy and growers remain interested in the new varieties under development.
Pipfruit and Stonefruit
Since the spring, sales of a limited number of Hawke’s Bay pipfruit and stonefruit properties have included both leased and unleased orchards, selling around the $130,000 to $150,000 per hectare mark.
While the sector’s outlook is generally positive, with crop on trees and healthy markets for good varieties, Rockit, a relatively new and previously thriving industry player, overestimated supply requirements to levels that significantly outrun projected demand. This has put some growers under pressure, and several are offering Rockit orchards, predominantly leased, to the market.
On the back of the pending free trade agreement between New Zealand and India, several established pipfruit growers with connections to India are recognising opportunities.
Buyer preference is to take on leases of younger tree blocks with good infrastructure, water and rootstock that can be grafted over. These offer a quicker and less expensive route to profit than a greenfields development. More leases will come up for sale as the Rockit situation plays out through the coming season.
The balance between supply and demand for orchards is reasonably even at present. Although the number of orchards for sale is limited, more are available for lease, which matches the current preference among orchardists.
Cropping
Through spring and summer the market for arable and cropping property was subdued. Having endured a couple of tough seasons, when the climate affected harvest and profitability, no transactions of note occurred in Mid or South Canterbury through the past few months. During the last couple of years those arable farmers who opt for lamb finishing and grazing to supplement income have benefited, helping balance otherwise average performance.
Well-established cropping farmers are accustomed to the sector’s cycles and prepared to ride the highs and lows. However, several are reviewing their options, including investigating off-market sales. Frustration at ongoing diminished returns may see some change their farming system. Others might be inclined to sell.
Any farmer that acts on the impulse to test the market will attract interest.
Arable properties with favourable soils, water, location and infrastructure will always be well sought after. Cropping farms with these criteria should still transact positively as buyers look to increase scale businesses, and use capital items such as plant and machinery more efficiently.
If listed, other properties should also attract attention, though more likely from the dairy sector, where farmers will seek land for support purposes, either to rear and graze young stock, or to winter cows.
Forestry
Since the previous general election, regulatory changes have markedly altered the forestry sector and its property market.
After the government reviewed the sector and amended policy, full farm-to-forestry conversions have ceased. Meanwhile consented properties sold prior to the changes have until the 2026 season to complete their planting.
Several newly planted forests have been offered to the market in the last 12 months. Subject to Overseas Investment Office approval, transactions of these have passed the special forest test and are therefore able to proceed.
Under the Emissions Trading Scheme (ETS) the carbon price has slipped in recent months into the $30 to $35 per unit range, approximately half the 2024 level. No carbon units sold via government auction during 2025.Activity in the market for North Island forestry property is subdued.
Three recently planted Otago forests are being prepared to go to the market this autumn. In particular a 600 hectare South Otago property should attract attention.
Early in the season an even balance prevailed between supply and demand for forestry property. Some property already for sale is primarily being marketed with the intention of attracting international buyers.
