Biggest trends

Margin pressure despite strong returns

Sheep and beef prices have performed well and wool is improving, but rising input costs and compliance demands continue to squeeze margins. Interest rates are easing, and buyer enquiry has lifted - particularly from farmers looking to expand and first-time buyers re-entering the market. Enquiry and offer levels are well above what’s been seen over the past two years.

Environmental compliance shaping decisions

Environmental factors are front of mind for buyers, including land use limits, water rules and carbon opportunities. Well-prepared vendors with good documentation are seeing smoother sales. New Land Use Class (LUC) rules for ETS registration have created value through strategic farm planting.

Forestry pressure easing, values adjust

While conversions have continued under a regulatory window (until Nov 2025), rule changes ahead are shifting demand. Expect stronger interest in LUC 7–8 for planting and genuine farmer competition for LUC 1–6.

Outlook for the Next 12 Months

Regulatory clarity lifting confidence

Recent policy shifts and reduced competition from forestry buyers are supporting farmer confidence. While trade policy risk still lingers, improved returns and lower interest rates are encouraging expansion across the sector. Buyers are engaging with confidence and competing actively for farm opportunities.

Buyer pool growing and diversifying

Land use changes and more accessible pricing are drawing a wider range of buyers back to the market. From first-time purchasers to larger operators, interest spans from smaller blocks to premium farms. Equity partnerships are also re-emerging as affordability.

Opportunity for long-term players

Reduced forestry demand and steady beef outlooks are creating good buying conditions. Farms at more accessible price points are offering entry opportunities, with potential to build equity over time through operational improvements and capital gain.