We have had a number of properties sell and go under contract in the week before Christmas. As we return to work all our Canterbury agents are straight back into their work - ensuring contracts are complete, as well as preparing several new listings to hit the market.

We are also getting our sales pipeline ready and are out and about across the province securing new properties to satisfy buyer demand - predominantly in the dairy and dairy support space.

Feedback from many of our contacts in the farming community is that everyone has taken time to have a good break over the Christmas period, with every sector taking a break knowing they had plenty of feed reserves on the ground from what turned into a very good spring growing season.

That, coupled with a new Government and a slight easing of long-term interest rates, is seeing far greater confidence in the rural community than we have seen for many years.

For Bayleys Canterbury, this has certainly been fantastic to witness enthusiasm back in the sector and people having confidence in agriculture once again. We’ve seen some recent record sales values for irrigated land in Central Canterbury, and a corresponding real enthusiasm amongst buyers particularly leading up to Christmas with several properties receiving back-up offers.

Dairy farm values remain solid within similar values to the previous year. We are also seeing solid interest in dairy support land, and strong demand for dairy farms right across the region - but particularly in the Culverden Basin.

Hill country sheep and beef property transactions have been slower than other parts of the market from a sales point of view. However, several buyers are waiting on the sale of their properties, before proceeding to purchase in Canterbury. We are expecting to see several sheep and beef property sales as we move into autumn/early winter.

This overview is supported by what we are seeing in the early stages of 2024, noting that median sales prices are holding steady now. This indicates that the ‘flight to quality’ continues to be an on-going trend.

Drawing on the Real Estate Institute of New Zealand’s most recent rural sales data (for three months to November 2023) we can see that ballpark pricing ranges are as follows:

• The national median sales price per hectare for dairy farms was $38,265
• The national median sale price per hectare for finishing farms was $35,460
• The national median sale price per hectare for grazing farms was $11,980

and

• The national median sale price per hectare for horticulture farms was $231,150.

The early economic indications for 2024 would suggest we are in for a more positive 12-month period this year for the farming sector - with revised payouts upwards from both Fonterra and now Synlait contributing to this optimism. Furthermore, the potential easing of interest rates and strong demand for land across the region all bode well ensuring Canterbury is still a great place to both live and farm.

As ever, if you are considering the sale of your rural property, or your interest has been piqued by a listing on the Bayleys Canterbury website, please get in touch with any of our experienced rural agents. We’re available to discuss the values we are seeing, and how we can work with you to secure the best value possible from the sale of your rural real estate asset.