The South Island dairy land market is heating up, with a record $87,000/ha paid at auction for a Canterbury dairy farm in November.

In this episode, Anne Lee speaks with Paul Mills, director and valuer with Property Advisory, about the momentum in South Island dairy land sales and the shifts shaping this season’s market. He reflects on the lift in Canterbury’s top-tier values, standout sales including the Kyle Park auction, trends across other regions and changes in lending appetite from banks. Paul talks about farmer confidence in Fonterra’s strategy, implications of land prices on succession and farmer expectations for returns on investment.

Host:

• Anne Lee, Senior Journalist, Dairy Country

Guest:

• Paul Mills, Director, Property Advisory Canterbury

Paul Mills reflects on recent trends in the South Island dairy property market, sharing his insights on what is driving rising values and heightened activity this season. He explains how strong milk prices, Fonterra’s return of capital to farmers and confidence in the co-op’s strategy are underpinning an optimistic outlook. He digs into the numbers and points out that tier one farms with modern, well-maintained infrastructure are commanding premium prices.

Paul discusses standout sales, including the Kyle Park auction, and explores regional differences across Canterbury, North Otago, South Otago, and Southland, as well as the levels of demand across a range of property categories. He talks about the practical and financial realities of dairy conversions and discusses implications rising land values have for succession. He highlights the influence the state of infrastructure can have on values and discusses return on investment. For anyone navigating the current market - buyers or sellers - it’s important to know your numbers and understand your options.