Activity was particularly strong in key dairy regions including Northland, Otago and Southland, where higher farmgate milk returns helped fuel renewed investment. REINZ rural spokesperson Shane O’Brien said demand has been concentrated around top-performing dairy properties with proven production records, reliable infrastructure and strong environmental compliance. Transactions have largely been driven by established farming families and farmer-to-farmer deals rather than speculative buyers.

The report noted that overall rural confidence is now at its highest level since the 2008 global financial crisis, with dairy acting as the primary engine behind the recovery. Market activity in South Otago reached levels not seen in seven to eight years as buyers responded to more stable processor outlooks and stronger liquidity generated by recent seasons. Notably, the number of dairy farm transactions above NZ$10 million hit the highest level recorded since REINZ began tracking the data in 1997.

Seasonal conditions have also played a critical role in supporting dairy profitability. Favorable pasture growth across much of New Zealand has reduced reliance on supplementary feed while helping farms maintain strong production levels. Buyers continue to prioritize scale, productivity and operational efficiency, focusing on properties capable of delivering consistent long-term returns in a more disciplined investment environment.