Two islands, one opportunity
Tuesday, 18 November 2025
How 2025 is redefining NZ dairy property
While it’s still very early in the current season, what is clear is that NZ dairy sales by number this calendar year continue to strengthen. Our first thoughts always go to the median sale price, which for both North and South Islands is sitting at $34,500/ha (Jan to Oct 2025). However, what has captured our interest, are the number of buyers now prepared to look at dairy businesses operating at scale.
In previous years, it has been challenging for buyers to source borrowed capital for large-scale dairy businesses, and, until very recently, there were no offshore dairy-to-dairy NZ farm investment transactions either. The confidence of larger, more established family businesses to pursue growth opportunities has evolved and now definitely carries banking support. Of the 157 dairy sales this calendar year (REINZ excluding private sales), there are 24, $10m+ dairy farm sales, primarily driven by the South Island (20) activity.
If we look at the data by scale of dairy enterprise, not value, the number doubles again to 50 dairy farms (200 ha+) sold this calendar year, or, put another way, a third of the NZ dairy real estate market. Again, the South Island dominates, accounting for 35 of these 50 dairy sales.
While it often does not pay to generalise, it is very clear we have two very different dairy markets in the North and South Island, and it’s been that way for a long time; both represent opportunities for family farm businesses.
In the North Island, over 83% of dairy sales are farms of less than 200 ha, accounting for 72% of the market value. By contrast, in the South Island, half the sales are 200 ha+ and equate to 70% of the market value. We do hear a lot about large-scale dairy and its infl uence on the NZ rural property market. This is undoubtedly true.
What is also true is that owner-operators in the North Island have an equal number of buying opportunities, and these can often fit just as easily within the scope of their existing businesses, given that the median is now $34,500 across both Islands.
Fonterra shareholder support for the revised capital structure is likely to further assist dairy business growth aspirations in 2026. For those who miss out on the first shot at an additional property ahead of Christmas, it might pay to reload as the current median ($34,500) looks very affordable. Particularly when you take into account the overall market stimulus in favour of owning a dairy business forward of today.
Whether you’re looking to buy or sell your farm or lifestyle property, our True Team is here to exceed your expectations. With a perfect blend of energy and experience on your side, you can’t go wrong with Property Brokers.
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