Rural Market Resilient Despite Seasonal Fluctuations

The latest data from the Real Estate Institute of New Zealand (REINZ) reveals an exciting surge in farm sales, with a notable increase of 69 transactions, which is a 32.1% rise for the three months ending in February 2025 compared to the same period in 2024. This means 284 farms changed hands in February 2025, showcasing a dynamic agricultural market.

While this is a decrease from the 313 farm sales recorded in the previous three months ending January 2025 (-9.3%), the year-on-year growth from February 2024, which saw only 215 sales, highlights a significant upward trend in the sector.

1,084 farms were sold in the year to February 2025, 149 more than were sold in the year to February 2024, with 39.9% more Dairy farms, 37.8% more Dairy Support, 0.4% more Grazing farms, 7.9% fewer Finishing farms and 35.7% more Arable farms sold over the same period.

The REINZ rural spokesperson commented on the regional dynamics, stating that the strong increase in farm sales over the past year reflects renewed confidence in the rural property market. The rise in sales activity suggests that buyers are taking advantage of market conditions, whether for expansion, investment, or diversification.

The median price per hectare for all farms sold in the three months to February 2025 was $28,115 compared to $27,620 recorded for the three months ended February 2024 (+1.8%). The median price per hectare decreased by 3.5% compared to January 2025.

The REINZ All Farm Price Index increased 0.2% in the three months to February 2025 compared to the three months to January 2025, and 5.2% compared to the three months ending February 2024. The REINZ All Farm Price Index adjusts for differences in farm size, location, and farming type, unlike the median price per hectare, which does not adjust for these factors.

Nine regions recorded an increase in farm sales for the three months ending February 2025 compared to the three months ending February 2024, with the most notable being Southland (+31 sales) and Taranaki (+13 sales). Wellington (-2 sales) and Northland and Waikato (-1 sale) recorded decreases in sales.

Four regions recorded an increase in sales compared to the three months ending January 2025, the most notable being Southland (+7 sales) and Taranaki (+4 sales).

In February 2025, Dairy farms accounted for 30% of all sales. Grazing farms accounted for 23% of all sales, Finishing farms accounted for 19% of all sales, and Dairy Support farms accounted for 12% of all sales. These four property types accounted for 83% of all sales during the three months ending February 2025.

Dairy Farms

In the three months ending February 2025, the median sales price per hectare for Dairy farms stood at $38,770 (85 properties), reflecting a slight dip from $40,870 (83 properties) in January 2025 and $39,200 (49 properties) in February 2024. Over the past year, this signifies a 1.1% decrease. The average Dairy farm size during this period was 145 hectares.

When measured by the price per kilo of milk solids, the median sales price dropped to $33.75 per kg for the three months ending February 2025, down from $37.97 in January 2025 (-11.1%) and $38.21 in February 2024 (-11.7%).

Additionally, the REINZ Dairy Farm Price Index fell by 4.3% in the three months to February 2025 compared to the previous three months but saw a marginal increase of 0.4% from February 2024. The REINZ index considers farm size and location variations.

Finishing Farms

For the three months ended February 2025, the median sale price per hectare for Finishing farms was $33,245 (54 properties), compared to $33,245 (74 properties) for the three months ended January 2025 and $33,220 (45 properties) for the three months ended February 2024. The median price per hectare for Finishing farms has increased by 0.1% over the past 12 months. The median Finishing farm size for the three months ended February 2025 was 41 hectares.

Grazing Farms

In the three months ending February 2025, the Grazing farm market saw significant fluctuations, with the median sales price per hectare falling to $11,960 for 64 properties, down from $12,200 for 68 properties in January 2025 and $13,420 for 53 properties in February 2024. Over the past year, prices have decreased by 10.9%, with an average farm size of 132 hectares.

Horticulture Farms

For the three months ending February 2025, the median sales price per hectare for Horticulture farms was $243,335 (20 properties), compared to $228,270 (19

properties) for the three months ending January 2025 and $208,690 (13 properties) for the three months to February 2024. The median price per hectare for Horticulture farms has increased 16.6% over the past year. The median Horticulture farm size for the three months ending February 2025 was 7 hectares.

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