As the South Island heads into spring, the rural property market is showing signs of renewed activity across key regions.
There’s plenty to explore across the regions, here’s a quick look at what's happening in:
If you're keen to explore rural property opportunities in the North Island, don’t miss their market snapshot!
Pictured: Kingsway Farms, Appleby Highway, a 58-hectare dairy property with water from the nearly commissioned Waimea dam.
Tasman
Activity in the Tasman spring and summer rural property market should increase compared to recent months, particularly for dairy. Raidale Farm, a 322-hectare dairy property sold in April for $7.3 million. Meanwhile, Kingsway Farms, Appleby Highway, a 58-hectare dairy property with water from the nearly commissioned Waimea dam is listed for spring sale. While recent demand for Tasman region sheep and beef property has been limited, farms of this type are coming to the market and should attract attention. Viticulture, which plays a major role in the Marlborough market, is due for a reset. An oversupply in recent seasons has created an excess of unsold wine. Alongside older vines in many vineyards, this has led to an uncertain vineyard property market, which will may be resolved in the coming months or may take longer. Marlborough property is still in demand.
Pictured: 162-hectare irrigated desirable dairy farm in Sheffield.
Canterbury
A lack of sales through the winter made this one of the Canterbury rural property market’s quietest periods on record. Drought in North Canterbury compounded the same factors that are sapping farmer confidence elsewhere. However, listing early a 162 hectare irrigated Sheffield dairy farm achieving 243,000 kilograms of milksolids from 560 cows attracted plenty of interest. Meanwhile, other quality spring listings stand to capitalise on the change of mood that reduced interest rates and improving commodity returns ought to prompt. These include Te Mara, a 312 hectare Waiau sheep and beef farm; a well located 172 hectare Cheviot property called Nonoti; and a 500 cow modern dairy farm in Oxford. When presented at their best, by vendors with reasonable pricing expectations, these and other spring listings should attract buyers as the Canterbury market swings back to the positive.
Moderate numbers of West Coast rural properties are projected to hit the market in the spring, with listings anticipated to span all price brackets and districts. Recent sales have surpassed the five-year median quantity and are primarily concentrated in preferred localities, comprising transactions at firm to moderate values. Capital availability is low. As in other regions, regulatory pressures persist, while the high cost of borrowing and on-farm expenses have harmed farmer confidence. As spring and summer progress, any West Coast dairy property offered for sale featuring superior infrastructure and a low risk profile should be well received by the market. As in other regions, vendors of such properties are advised to ensure that any farm they present for sale is in the best possible shape, and can be fully verified as such.
Pictured: The Dasher Station, a 6300-hectare pastoral lease property at Kauru Hill, Maraeweka
Mid and South Canterbury and North Otago
Notable recent dairy property sales in Mid and South Canterbury include at Ashburton Forks, Orton and Makikihi, ranging from $48,000 to $53,000 per hectare. Pricing was a little shy of the market’s 2021 peak, though still strong, and consistent with last season’s values. Poor returns for lamb, mutton and wool persuaded some of the region’s farmers to consider procuring more trading cattle and breeding cows while reducing ewe numbers. Sheep and beef farm values are likely to reset, though as sales may be limited in the coming months, this might not occur until early next year. One North Otago spring listing, The Dasher Station, a 6300-hectare pastoral lease property at Kauru Hill, Maraeweka, will attract plenty of attention. Meanwhile, although Mid Canterbury arable farms only rarely change hands, two with size and scale will list in spring, representing a generational opportunity.
Otago farmers have increased their focus on the rural property market recently. More favourable interest rates and improved commodity returns have boosted confidence, driving record level listings. Those selling are conscious of a limited buyer pool, boosting early spring listings. Prospective buyers therefore have an excellent selection, particularly of dairy, dairy run off and sheep and beef farms. Offered for spring sale and likely to attract plenty of attention are Bendoran, a 1774-hectare freehold run inland from Waikouaiti selling for the first time since 1904, and a 413-hectare Wharetoa, South Otago farm, the location of one of the region’s foremost genetics businesses; while a 130-hectare Poolburn, Central Otago dairy farm, producing 160,000 kilograms of milksolids per annum, with an adjoining 240 hectare dry stock property also available, presents another excellent set of opportunities for the right buyer.
Pictured: 2000-hectare Glenquoich Station adjacent to Athol township.
Southland
As in other regions, dairy is leading the re-emergence of the Southland rural property market. Listed farms are attracting genuine enquiry, with contracts in prospect earlier in spring than generally occurs. Interest in properties valued at $6 to $8 million and above is greater than in recent seasons as dropping interest rates and positive dairy auctions have encouraged purchasers. Activity around sheep and beef farms should feature as the season progresses. Southland spring listings that will attract attention include 2000-hectare Glenquoich Station adjacent to Athol township, and several new dairy listings ranging from 450 to 650 cows. Three autumn forestry sales proceeded between $2 and $3.5 million. While many with an interest in forestry are waiting to hear what the government will decide relating to carbon credits, a few are pushing on regardless, focusing more on forestry production.
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