South Island farms fetching top prices

Sales in excess of $50,000 per hectare for farms in North, Central and Mid Canterbury, were recorded in October, with others pending at similar values.

Tim Gallagher, PGG Wrightson Real Estate, Ashburton believes the dairy market is rebounding towards all time high levels.

Gallagher recently sold a 298ha farm located between Ashburton and Geraldine for over $50,000/ha.

"This property is based on a hybrid calving system with productivity through long days-in-milk. Management of the 1100 cow farm is aided by a stall barn and a loafing barn, which enhance both production and environmental sustainability.

"Market response to the property was excellent. We received five offers within two weeks, and had the farm under contract quickly, to the satisfaction of both vendor and purchaser, through clearly leaving unmet demand from the offers that were not successful," says Gallagher.

Dairy listings are up almost 300% on the same time last year.

The recent upgrade to Fonterra's milk price forecast and banks' appetite to support the primary sector rising are helping sales.

"Our vendors are reacting to those signals, in some cases after several years of waiting for the right time to exit. Based on completed recent sales and ongoing negotiations on current listings, that time has arrived: dairy property values are firm at levels close to the market's all-time peak, previously reached in 2013," says PGG Wrightson Real Estate's Calvin Leen.