Dairy And Arable Farms Drive Growth As Farm Sales Rise Across New Zealand

The latest data from the Real Estate Institute of New Zealand (REINZ) reveals a dynamic shift in the rural property market, with farm sales jumping by 25% in the three months to October 2024 compared to the same period last year.

190 farms were sold in the three months ending October 2024, reflecting strong demand for rural properties, compared to 199 farm sales for the three months ending September 2024 (-4.5%) and 152 farm sales for the three months ending October 2023.

This surge is part of a broader trend in the rural sector, as buyers continue to show interest in specific farm types—especially Dairy and Arable properties.

Shane O’Brien, Rural Spokesman at REINZ, commented, “The quiet pre-spring market possibly skews the results for the previous 3 months and doesn’t represent the current market, which seems to be sector driven. Agents across the country are reporting strong buyer activity for high-quality Dairy farms, with several market leading sales and multiple offers being reported so far this spring. Upcoming sales results are expected to clarify this trend further.”

While the overall number of farms sold in the year to October 2024 reached 960, a decrease of 108 compared to the previous year, the sales data paints a picture of shifting agricultural priorities. Dairy farm sales dropped by 15.6%, while Arable farms soared, with a staggering 45% more properties changing hands compared to the year before.

The median price per hectare for all farms sold in the three months to October 2024 was $28,510, marking a 3.1% increase from the same period last year. Prices also showed a 2.2% increase compared to the previous quarter, indicating a steady rise in land values despite varying market conditions.

“The increase in Arable sales activity has been more widespread and comes after limited activity for much of the year. However, activity in the sheep and beef sector remains constrained due to low returns and unseasonably dry conditions across several regions, particularly on the South Island,” continues O’Brien.

The REINZ All Farm Price Index, which factors in farm size, location, and farming type, rose by 4.2% from the three months ending October 2024 compared to the three months ending September 2024. However, it decreased by 5.8% compared to

the three months ending October 2023, highlighting a complex market where different kinds of farms are seeing varied price movements.

Regarding regional performance, farm sales were up in eight regions for the three months ending October 2024 compared to the three months ending October 2023. The Bay of Plenty recorded an impressive increase of 15 more sales than last year, while Taranaki and Canterbury added nine each.

“It’s very encouraging to see the Bay of Plenty feature with a noticeable increase in sales activity, especially after challenging market conditions in the Horticulture sector. The signs indicate that this trend is likely to continue. The Dairy market in Canterbury is particularly active, and we anticipate that this will be reflected more fully in the sales results in the coming months,” O’Brien concludes.

Grazing and Finishing farms dominated sales, comprising 42% of all transactions in the three months to October 2024. Dairy and Dairy Support farms accounted for another 27% of the total sales, reflecting continued interest in these traditionally strong sectors.

The market for rural properties remains dynamic, with specific farms and regions outperforming others. With rising prices in key sectors, New Zealand’s rural real estate landscape looks set to stay competitive as we head into 2025.

Dairy Farms

From July to October 2024, the median sales price for Dairy farms was $48,325 per hectare (26 properties), up from $39,950 (14 properties) in September and $32,690 (15 properties) in October 2023. This marks a 47.8% increase over the past year. The average Dairy farm size was 94 hectares.

The median price for milk solids was $44.32 per kilogram in October 2024, down from $45.97 in September (a 3.6% decrease) but up from $39.25 a year ago (a 12.9% increase).

The REINZ Dairy Farm Price Index increased 0.2% in the three months to October 2024 compared to the three months to September 2024. Compared to October 2023, the REINZ Dairy Farm Price Index increased by 18.9%.

Finishing Farms

For the three months ended October 2024, the median sale price per hectare for Finishing farms was $34,855 (38 properties), down from $34,750 (41 properties) in September 2024 and $38,510 (55 properties) in October 2023. This represents a 9.5% decrease over the past year. The median farm size was 36 hectares.

Grazing Farms

For the three months ended October 2024, the median sales price per hectare for Grazing farms was $12,725 (42 properties), down from $13,955 (50 properties) in September 2024 and up from $11,700 (37 properties) in October 2023. Over the past 12 months, the median price per hectare has increased by 8.8%. The median Grazing farm size was 80 hectares.

Horticulture Farms

For the three months ended October 2024, the median sales price per hectare for Horticulture farms was $191,200 (22 properties), compared to $191,200 (28 properties) for the three months ended September 2024 and $233,330 (14 properties) for the three months ended October 2023. The median price per hectare for Horticulture farms has decreased -18.1% over the past 12 months. The median Horticulture farm size for the three months ended October 2024 was 8 hectares.

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