Data released by the Real Estate Institute of New Zealand (REINZ) shows a notable increase in farm sales across the country, with Southland standing out for its significant growth in the final quarter of 2024.

Graphic: REINZ/Supplied

For the three months ending December 2024, Southland recorded a 27-sale jump, a 28.6% increase from the same period in 2023, mirroring the national trend of a vibrant farming sector.

A total of 315 farms were sold in the last quarter of 2024, up from 259 in the previous quarter and 245 in the same period of 2023.

This brings the total number of farm sales for the year to 1,067, marking an increase of nine sales compared to the previous year. In Southland alone, the total sales for the quarter increased by 21 sales compared to the three months ending November 2024, reflecting the region's strong performance within the sector.

REINZ rural commentators point to the growth in Dairy and Dairy Support farm sales as key indicators of confidence in these sectors, particularly in Southland.

The sale of these farms rose 7.9% and 17.8% respectively in the past year.

However, declines in Grazing and Finishing farm sales, down 19% and 23.1%, signal shifting priorities in land use across the country.

In Southland, the trend towards Dairy farms has been especially strong, contributing to the overall 27-sale increase in the region. REINZ notes that, while prices per hectare for all types of farms have decreased compared to 2023, the growing volume of transactions offers a hopeful sign for the industry.

The median price per hectare for all farms nationwide was $28,710 for the December 2024 quarter, a 13.6% drop from the previous year.

This decrease is reflected across most farm categories, with Dairy farm prices averaging $45,165 per hectare, showing a slight decrease from the previous quarter but an overall 10.1% increase over the past year.

The dairy sector is particularly noteworthy, with the median price per kilogram of milk solids falling to $39.10, a decrease from $41.84 in November 2024.

Despite this, the REINZ Dairy Farm Price Index showed a 12% increase year-on-year, suggesting resilience in the market.

The REINZ All Farm Price Index saw a modest 1.9% increase in the last quarter of 2024, but declined 0.4% from December 2023.

This reflects a broader picture of diverse regional activity, with notable increases in farm sales seen in Southland, Northland, and Waikato.

Looking ahead, REINZ predicts that while farm prices are down from previous highs, the increase in farm sales is a positive sign for the industry, with Southland continuing to play a key role in this growth.