The Real Estate Institute of New Zealand (REINZ) has reported renewed confidence in the rural property market, with buyer demand strengthening across several farming sectors in the 12 months to September 2025 as financing conditions improved and outlooks for key commodities stabilised.
REINZ rural spokesperson Shane O’Brien said market activity varied by region and sector, reflecting both local conditions and commodity trends. “Farming sectors around New Zealand displayed differing patterns of activity, shaped by regional advantages, commodity prices, and climatic factors. Buyers increasingly focused on properties that offered operational certainty, including reliable water supply and established infrastructure,” he said.
Waikato recorded the most dairy sales nationwide, up 18% to 59, followed by Southland with 40 sales, an increase of 110.5%. Taranaki, Canterbury and Manawatū/Whanganui also recorded significant gains. While Waikato’s median sales price per hectare fell 7.7%, Manawatū/Whanganui rose 57.9%, Canterbury gained 12.2%, and Southland increased 5.4%. “Dairy farm sales activity was strong in Canterbury, Waikato and Southland. Confidence improved on the back of reduced financing costs and stable milk price forecasts. Environmental and regulatory obligations continue to feature strongly in due diligence processes,” O’Brien said.
Sales of grazing farms also rose sharply, particularly in Southland, Otago and Northland, with improved sentiment supported by higher commodity prices and resilient livestock values. Finishing farm sales held steady, led by Manawatū-Whanganui, Canterbury, Southland and Waikato. “Looking ahead, finishing farm demand will continue to be shaped by red meat export performance and climatic conditions, with resilient values expected for well-located farms,” O’Brien said.
Horticultural sales rose to 112 for the year, up from 75, with Bay of Plenty and Marlborough showing the strongest growth. “Horticultural property sales were steady overall, with Bay of Plenty the key centre of activity. Kiwifruit orchards in the Bay of Plenty continued to anchor the sector, as well-managed gold-variety licences drew solid demand, though values stabilised after several years of rapid gains. Labour availability continued to concern growers, with ongoing workforce shortages and higher wage expectations influencing both operations and buyer assessments,” O’Brien said.
The viticulture sector remained steady, although oversupply and weaker global demand limited expansion. Arable farm sales declined to 48 from 53, with Canterbury remaining the dominant region. “Arable sales were strongest in Canterbury, where fertile soils and established irrigation networks continued to underpin activity. Demand for cereal cropping land held firm on the back of stable domestic feed requirements and strong export prices, though profitability remained sensitive to input costs such as fertiliser and fuel,” O’Brien said.
In forestry, buyers maintained interest in younger, ETS-registered forests offering carbon income potential, though restrictions on new planting and protection of highly productive land tempered demand for large-scale conversions.
The lifestyle market showed mixed results, with increased sales in 15 regions. Farmlet sales were strongest in Waikato, Canterbury and Auckland, while Marlborough was the only region to record a decline. “Interest in farmlet properties remained strongest in Waikato, Canterbury and Auckland, where well-presented homes with sheds and services attracted buyers. Bareland demand increased in Southland and the West Coast, although buyers stayed disciplined, focusing on sites with shelter, access, and utilities already in place,” O’Brien said.
O’Brien said conditions point toward a busy summer selling season, with resilient values and ongoing buyer interest across several rural property types expected to continue into early 2026.