This episode featured as part of the Real Estate segment in partnership with Bayleys Country – your rural and lifestyle property specialists.

A Canterbury dairy support block has sold at auction for $74,000 a hectare, above the district’s usual range for blue-chip irrigated land.

Rob McConachy, Canterbury Country Manager at Bayleys, says typical blue-chip irrigated dairy support properties in mid-Canterbury are trading at about $65,000 a hectare.

He says demand is being driven by the $3.5 billion Fonterra capital return in April, with strong commodity prices and about 26 dairy conversions under way this season.

Conversion costs run to $20,000 to $25,000 a hectare, with shed-builder capacity a limiting factor.

“Competition’s driving it. It’s economics 101,” he says.

This episode featured as part of the Real Estate segment in partnership with Bayleys Country – your rural and lifestyle property specialists. To learn more about rural and lifestyle property opportunities, or to connect with a local expert, visit bayleys.co.nz/country

CountryWide CONNECT with Andy Thompson & Sarah Perriam-Lampp is our daily rural show livestreamed from 11am-1pm. Visit country-wide.co.nz on how to watch/listen or download the CountryWide CONNECT mobile app, available on Apple iOS and Android.