With milk prices holding strong and interest rates easing, there has been a major rebound in sales activity across several farm types in the South Island - including the dairy property market.
And reports are that many buyers are already getting organised ahead of spring. So whether you’re thinking about expanding, entering the market for the first time, or selling down part of your portfolio, understanding regional activity and demand trends can help you act at the right time.
We spoke to PGG Wrightson Real Estate’s rural property experts from Canterbury, Otago and Southland to get their insights on what’s moving, who’s buying, and where the best opportunities lie.
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South Otago and Southland
North Otago and Canterbury
North Island Dairy Property Outlook
Pictured: Craig Bates, Otago/Southland Sales Manager
South Otago and Southland poised for growth as confidence returns
According to Craig Bates, PGG Wrightson Real Estate Sales Manager for the region, a strong dairy payout, improving interest rates, and consistent returns are helping shift the sector out of a holding pattern it’s been in for the past few years.
“We’ve seen real movement in the last 12 months,” says Craig.
“There’s growing interest from existing dairy operators looking to expand, especially where neighbouring land becomes available. The business fundamentals are back in line - returns are solid, and confidence is up.”
One of the key trends is the re-emergence of investor activity.
“With cash returns from bank deposits sitting around 3 to 4%, we are seeing clients receiving ROI significantly more than that, so these returns are catching the attention of both family-scale operators and equity syndicates.”
Craig also notes that more farmers are seeing this as the time to grow or diversify their portfolios, particularly those who weathered tougher seasons and are now ready to capitalise on a more favourable market.
“Some long-standing owners in Southland and Otago are also planning to bring properties to market this spring,” he adds. “Many have held on through difficult times, and now the timing feels right to retire or restructure.”
While the market in Canterbury has seen larger-scale corporate activity, the Otago/Southland dairy scene remains more grounded in the ‘mum and dad’ segment.
“It’s steady and predictable,” says Craig. “The confidence from strong payouts has tipped the demand-supply balance just slightly in favour of sellers.”
Pictured: 177.35 ha Dairy Operation for sale in Edendale.
Spring is typically the peak sales window, particularly for buyers wanting to settle in time for the next dairy season. And Craig says preparation is already underway for many listings, with vendors investing in farm presentation - from trimming shelter belts to metalling lanes.
“There’s more planning and strategy behind listings now,” he says. “We’re having those early conversations to help vendors be market-ready when the time is right.”
Buyers in the region remain diverse, with strong interest from equity partnerships and younger farmers looking to move from sharemilking into ownership. Entry-level opportunities do exist, with Southland in particular offering productive units at accessible scales. That accessibility is boosted by the region’s increasingly strong infrastructure - processing facilities, transport links, and a well-connected real estate network.
Pictured: Taieri Lake Station, an exceptional 2721.33ha property for sale.
“Southland and Otago are among the best dairy-producing areas in the country,” says Craig. “The soil quality, scale of farms, and strong industry presence all stack up well. We’ve got all the major dairy companies represented down here, plus good access through Queenstown and Dunedin.”
Staffing continues to be a challenge, mirroring national trends, and land use changes can be time-consuming and costly. But Craig says he has seen a number of farmers actively investing in infrastructure like wintering sheds, in response to evolving compliance expectations and there’s also been a noticeable generational shift, with younger operators bringing fresh energy and ideas to traditional family farms.
“Innovation is happening at the grassroots - better grasses, better genetics, more efficient systems,” he says. “It’s a sign that farmers are thinking long-term.”
Looking ahead, Craig is optimistic. He says Otago and Southland offer strong ROI potential and a supportive environment for dairy operators and investors alike.
“If you're looking for a region with productive land, a reliable support network, and genuine potential to grow, Otago and Southland should absolutely be on your radar,” he says.
View our current Southland Dairy Property listings.
View our current Otago Dairy Property listings.
Pictured: Calvin Leen, North Otago, Mid & South Canterbury Sales Manager
North Otago and Canterbury see strong demand and innovation fuelling growth
The dairy property market across North Otago and Canterbury is showing robust activity and growing buyer confidence into the second half of 2025. Calvin Leen, Sales Manager for PGG Wrightson Real Estate in the region, describes a market energized by record-high milk prices, strong returns, and renewed appetite for growth.
“Interest from qualified buyers is very strong,” says Calvin.
“People are seeking tier 1 ‘grass factories’ - farms with high-quality pasture, reliable and low-cost irrigation, and the ability to bring in supplementary feed efficiently.
“The lower Waitaki area is especially prized for its dependable, affordable irrigation, making it a hotspot for dairy investments.”
Calvin notes that the forecast milk prices for 2025 and 2026 remain high and this outlook is encouraging farmers and investors to consider expanding operations again after a period of restraint due to fluctuating prices and rising input costs. So a combination of factors are driving a ‘perfect storm’ of market conditions that are pushing land values upwards.
“Buyers are predominantly large family entities and well-established farming businesses owning multiple properties, especially in the tier 1 land category,” says Calvin.
“However, tier 2 and 3 farms coming onto the market this spring are also attracting strong interest.”
On the innovation front, dairy farmers in the region are adopting cutting-edge technology to improve herd health and management. Calvin highlights developments such as Halter’s smart cow collars that monitor heat and health, and electrified fences controlled via smartphones, which enable dynamic pasture management.
Pictured: Simon Richards.
Simon Richards, Rural and Lifestyle Sales Consultant in Timaru says South Canterbury already has multiple buyers in the market who are ready to act as soon as suitable properties come up, highlighting a vibrant and competitive environment.
“Confidence in dairy payouts remains the primary driver of this demand, supported by lower interest rates. Farmers now have a clearer understanding of their cost structures and margins, and positive global demand for dairy products underpins a hopeful outlook for the future.”
Pictured: A 462ha fully self-contained dairy unit for sale in Seadown.
Buyers are selective, with premium prices paid for properties that combine quality irrigation, reliable water supply, and efficient cost structures. Environmentally compliant farms with strong infrastructure are particularly sought after, attracting multiple offers and high enquiry levels.
The market features a diverse range of active purchasers—from family entities looking to expand, to first-time farm buyers, as well as larger-scale investors seeking the right opportunity. This broad spectrum of buyers reflects South Canterbury’s varied farm sizes and types.
One of the region’s key advantages is its productive soil and moderate climate, coupled with multiple quality irrigation schemes. This combination supports good production at reasonable costs while helping mitigate environmental impacts. Additionally, South Canterbury offers quality support land for young stock growth and off-farm wintering, adding to its appeal.
Pictured: Dan van der Salm.
Slightly further north, Dan van der Salm, Rural and Lifestyle Consultant in Ashburton, says the market in Mid-Canterbury is currently very strong, with demand at an all-time high.
“While new season sales have yet to hit the market, a well-qualified and finance-approved pool of buyers is eagerly waiting. We expect demand and prices to be strong, potentially setting new regional records,” he explains.
“Several farms exceeded $60,000 per hectare in the autumn, and we anticipate that number will be surpassed this spring, assuming stable conditions,” says Dan.
Investors are increasingly attracted by the strong return on investment, particularly as many move away from arable farming. And because Mid-Canterbury’s reliable irrigation system provides a valuable guarantee of water supply and productivity, it reduces that risk in comparison to other regions where weather can be less predictable, says Dan.
Here buyers are coming from a wide range of backgrounds: existing farmers looking to expand, corporate investors valuing the security and quality of local assets, and farmers diversifying their portfolios. The region’s key advantages include its excellent soils, favorable climate, proximity to major processing facilities like Synlait and Fonterra, and strong local balance sheets driving farm efficiency and profitability.
For those interested in high-quality dairy assets with a proven track record and strong returns, Mid-Canterbury offers compelling opportunities, says Dan. And he encourages prospective buyers to connect early with PGG Wrightson agents to stay ahead of the competition as quality properties come to market in the next 3 to 6 months.
View our current Otago Dairy Property listings.
View our current Canterbury Dairy Property listings.
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Across all regions, there’s a shared sense of rising confidence, supported by strong dairy returns, improving financing conditions, and renewed buyer appetite. Whether you’re a family farmer expanding, a new entrant, or an investor, the current environment offers opportunities - particularly for well-prepared vendors and buyers ready to act.
For personalised support, PGG Wrightson Real Estate’s regional teams offer local knowledge, deep networks, and cross-sector expertise, from livestock and inputs to sales and succession.
Early conversations matter and our local knowledge and national reach can really make a difference - so let’s chat today.
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