Canterbury farmland in demand as sales and values lift
Monday, 20 October 2025
A positive shift is underway in the rural property market, underpinned by improving confidence and favourable conditions.
The rural property market is showing clear signs of revitalisation, supported by several key factors:
• Falling interest rates are easing financial pressure on farm businesses.
• Strong commodity prices across dairy, lamb, and beef are driving confidence at the farmgate.
• Renewed appetite from the banking sector is improving access to capital for farmers and growers, enabling more buyers to act.
Dairy Sector – Strength to Strength
Dairy farm sales have surged this season. In Canterbury alone, 40 dairy farms have sold in the 2024/25 season - a fourfold increase compared to the 2023/24 season. At the same time, the median price for established dairy farms has risen $5,000/ ha to $50,000/ha, a strong indicator of renewed confidence.
Looking ahead, a limited supply of established dairy units is expected to keep competition strong, with more buyers than sellers likely to remain the theme through the spring and summer selling season, which indicates per-hectare prices will continue to firm.
Sheep & Beef – Steady but Cautious
Rising returns for lamb and beef are gradually rebuilding confidence. However, many farmers remain focused on debt reduction rather than expansion, which has kept transaction volumes lower over the past 12 months.
An emerging trend is the development of solar farms on dryland sheep and beef country. Leasing or selling portions of land for solar generation provides a valuable alternative income stream in suitable locations.
The winter sales season proved exceptionally active, with many vendors opting to bring campaigns forward and achieved outstanding results.
Regulatory Landscape – Fresh Opportunities
The revocation of the National Environmental Standard for Freshwater (effective 1 January 2025) has unlocked new opportunities for land-use change. Dairy conversions, previously restricted, are now back on the table in some areas.
This shift coincides with arable operators pivoting toward dairy support, driven by a disappointing 2024/25 harvest, fewer viable seed contracts, and suppressed cereal prices for the coming year.
Current Market Activity – Strike while the iron is hot
The winter sales season proved exceptionally active, with many vendors opting to bring campaigns forward and achieved outstanding results. This strong momentum has carried through into early spring, reflected in solid enquiry levels and a healthy flow of new listings that signal a busy traditional selling season ahead. Prices continue to firm across key sectors, while renewed demand for well-located dairy support properties is emerging as one to watch, particularly as conversions of existing support land gather pace.
With market confidence rebuilding and strong buyer demand across the rural sector, now is the time to start planning. For confidential advice and tailored market insights, get in touch with one of our experienced rural property specialists today.
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