REINZ Reports Steady Rural Property Activity For Year Ending June 2025

The Real Estate Institute of New Zealand (REINZ) has released its latest rural property report, providing a detailed view of New Zealand’s rural real estate market for the 12 months ending June 2025. The data highlights a significant rebound in sales activity across several farm types, supported by improved commodity prices, reduced interest rates, and renewed interest from banks and private investors.

“Renewed interest in the dairy sector has been a key driver of the rural market in the past 12 months with an increased payout, favourable outlook and good support from banks combining to enhance farmer confidence to create an active market across much of New Zealand,” says REINZ Rural Spokesperson Shane O’Brien.

Southland and Canterbury saw increased interest in dairy sales, up 100% and 53.5% respectively, compared to the same period last year. Sales activity in traditional regions such as Waikato (up 16.2% to 136), Taranaki (up 37.7% to 73), and Manawatū/Whanganui (up 10.3% to 43) compared to the 12 months ending June 2024, remained strong. These five regions accounted for 74% of all dairy sales in the country for the year ending June 2025.

Price performance was mixed for these dominant dairy regions. Manawatū/Whanganui (+20.0%), Waikato (+6.4%) and Canterbury (+4.6%) all saw growth in median sale price per hectare, whereas Southland and Taranaki both saw declines (both -14.7%).

Grazing farms experienced a marked recovery, especially in Hawke’s Bay and Otago/Southland, driven by strong red meat prices and rising demand for support blocks. There were 358 grazing farms sold in the 12 months ending June 2025, compared to 290 sales the year prior. Favourable weather in areas like Wairarapa helped lift farm productivity and buyer sentiment. However, performance remains patchy, with marginal land struggling to attract buyers, and environmental compliance continues to weigh on the sector.

Grazing farm sales activity was strongest in the Manawatū/Whanganui, Northland, Otago, Southland and Waikato regions. These five regions accounted for 64% of total grazing farm sales. Manawatū/Whanganui (+56.8%), Northland (+31.1% and Southland (+29.2%) all saw very strong increases in sales activity. Otago saw modest growth (7.1%), whereas Waikato had a decline (10.7%).

In terms of the price per hectare received for Grazing farms in these regions, performance was similarly mixed. Manawatū/Whanganui (+21.3%) again led the way pointing to a strong overall grazing market. Northland saw a small increase (+1.7%), whereas Southland, Otago and Waikato all saw declines (- 13.3%, -10.6% and -1.1% respectively).

Finishing farms have attracted growing interest in regions like Taranaki and Bay of Plenty, aided by firm commodity pricing and favourable seasonal conditions. However, cost pressures and restrictions around forestry conversions have tempered some of this momentum.

The top five regions in terms of finishing farm sales activity were Manawatu-Whanganui (113 sales), Canterbury (104 sales), Southland (95 sales), Waikato (74 sales) and Otago (66 sales). These five regions represented 70% of Finishing sales in the country in the year ending June 2025.

There was a notable difference between the median price per hectare performance of the North Island and South Island regions for finishing farms. Manawatu-Whanganui and Waikato both had notable drops (26.5% and -23.5% respectively) whilst the South Island regions fetched higher prices per hectare (+17.4%, +16.4% and +14.0% in Canterbury, Otago and Southland respectively).

Horticulture sales had strong growth year on year in the majority of the dominant horticulture regions in New Zealand. Bay of Plenty (+63.2%), Northland (+23.1%) and Gisborne (+60.0%) saw robust sales activity growth, with Hawke’s Bay being the exception with a decline in sales year on year (-37.5%).

Median price per hectare for horticulture decreased in these areas year on year, with Marlborough being the only one of these five regions with an increase (+14.7%).

“The horticultural market showed mixed results. Kiwifruit orchards in the Bay of Plenty continued to be popular. Investment is increasingly focused on scale, with larger operators consolidating smaller orchards and vineyards. Climatic variability and global pricing uncertainty remain key concerns for most around the country,” says O’Brien.

“Horticulture has tended to be region-specific, with typical hotspots of Bay of Plenty and Hawke’s Bay dominating markets. However, it is noted that horticulturists are looking at areas such as Canterbury and Southland to diversify risk and growing seasons, with salespeople reporting an uplift in enquiry from some of these non-traditional growing areas.”

The arable sector saw limited sales activity, with 79 sales across New Zealand in the 12 months ending June 2025, with 58% of those sales (46) happening in Canterbury. Canterbury’s median price per hectare declined slightly to $44,000 (down 0.9%), while Waikato’s increased to $60,370 (up 26.7%).

“Higher input costs, weather-related yield issues, and static commodity prices contributed to buyer caution. Despite these challenges, well-managed farms with secure water access still attracted interest,” comments O’Brien.

“The viticulture market has remained largely inactive on the back of a global oversupply, uncertainty around global trading conditions and contracted supply arrangements. This downward trend may continue until there is some more positivity in the global wine markets, with key areas such as Marlborough and Hawke’s Bay particularly feeling the lack of buyer confidence and demand.”

Forestry sales remained subdued due to weak log prices and regulatory uncertainty. Rule changes, effective December 2024, restricting planting based on Land Use Capability, are likely to further dampen interest. ETS-registered younger forests continue to attract some attention, seen as a lower-risk option.

Forestry sales in Hawke’s Bay bucked the overall trend with a strong increase in both sales activity (63.6% more sales than the prior year) and median sale price per hectare (+27.7% year on year). Manawatū/Whanganui was the region with the most forestry sales in the year to June 2025, but experienced a 25.7% decrease in the number of sales and a 40% decrease in the median sale price per hectare compared to the year to June 2024.

“Changes in land use continue to impact the rural markets. Much has been publicised about forestry conversions from pasture to trees and government initiatives to stem this. Further land use changes were highlighted recently, with Environment Canterbury making front-page news with an increase in consents granted and being processed for dairy conversion in Canterbury,” O’Brien says.

“At the same time, further government regulations around the subdivision of highly productive land have, to some extent, slowed the subdivision of farms into smaller lifestyle blocks in most areas, and many new District Plans are looking to stem the 'urban crawl’ into the outlying rural areas.”

The lifestyle market was mixed. While regions like Taranaki faced high stock levels and reduced demand from traditional buyers, areas such as Auckland, Waikato, and Canterbury benefited from increased interest by urban dwellers seeking rural living.

Farmlet (lifestyle properties with residences on them) sales were most prominent in Waikato, Canterbury, Auckland, Northland, and Manawatū/Whanganui, with those five regions accounting for 63% of sales nationwide in the year ending June 2025. Those regions all experienced increased sales activity year over year, and most saw modest increases in the median sale price per hectare. Northland (+3.9%), Waikato (+2.6%), Canterbury (+2.4%) and Auckland (0.8%) saw growth, whereas the Manawatū/Whanganui experienced a 1.4% decrease in median sale price per hectare year on year.

Bareland lifestyle sales were most prominent in Waikato, Northland, Canterbury, Otago and Auckland, with those regions accounting for 58% of all sales. Those regions had mixed fortunes in terms of sales activity, with strong increases in Otago and Waikato (+31.1% and 23.1%, respectively), a slight increase in Auckland (+0.6%), and small decreases in Northland and Canterbury (-4.2% and -3.5%, respectively). Median sale price per hectare performance was similarly mixed, with year-on-year increases in Auckland (+6.8%), Canterbury (+6.8%), and Waikato (+1.6%), but decreases in Northland (-12.0%) and Otago (- 6.2%).

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