This time last year, uncertainty and caution had many rural landowners holding back - but 2025 is telling a different story. The rural property market is tracking miles ahead of where it was this time last year. As many know, the Otago/Southland regions have (probably) been the most profitable locations to invest in agriculture in the country. This is particularly true of the dairy sector. With record-high milk prices, reducing interest rates and farm expenses and a (generally) mild and supporting climate, the South has never looked better as the destination of choice for strategic investment in the sector.
During the 24/25 season, we were involved in sales across the two provinces with values from low $20,000’s per hectare to over $50,000 per hectare and everything in between. The average for good quality dairy land is around $34,000 to $38,000/ha (not $60-80k/ha as in many other regions). Buyers have included first-farm buyers, larger established families and rural corporate buyers looking for excellent returns.
The message here is that there is something for every budget, and with our low cost of production, your return on investment is the industry’s best.
They say the South never lets you down, and this season has been a good example. Southland, in particular, had the worst/wettest spring in living memory.
Generally, farms were left in a very wet an unpresentable state, and it wasn’t until just before Christmas that things changed. Fast forward to March-May, and we have had one of the best autumn periods I can recall. Stock is in good condition, and grass covers are exceptional.
The Property Brokers Otago-Southland Rural Team are very optimistic about the coming season. We have numerous excellent quality listings in the pipeline that will come to market from June through the winter and into the spring. Of these, many are in the sheep and beef sector and will represent outstanding value. This sector is just starting to see renewed buyer interest from within the red meat industry as demand for extensive hill country and quality finishing land improves on the back of increasing returns for red meat.
Demand for extensive hill country from the forestry sector has reduced from recent highs but is still evident for the right blocks close to service ports and roading infrastructure.
If you are considering investing in the primary industries, you really need to discuss what the South has to offer.
We have numerous excellent quality listings in the pipeline that will come to market from June through the winter and into the spring.”
Our experienced and highly skilled team of rural agents would love to show you around and explain the benefits of living “down South”. Whether it is a family relocation, a partnership of like-minded investors or a corporate strategic investment, we will have something of interest that will be compelling.
Looking to invest in the Lower South? Whether you’re thinking about listing or just curious about the value of your land, now is the time to start the conversation.
