Southland Dairy Farmland Gains Lift the Fund’s Unit Price

The revaluation of dairy farmland has increased the balance-sheet value of the Private Land and Property Fund. Its net asset value rose by 2.1% following the revised appraisal, according to the information provided by the fund.

The unit price used when issuing new units will be adjusted from $1.229 to $1.255. The change is due to be included formally in the fund’s September 30th 2026 valuation, which is scheduled for publication on October 2nd 2026.

The appraisal reflects conditions in New Zealand’s pasture-based dairy industry. Investor and farm-operator sentiment has remained firm alongside another positive farmgate milk-price forecast from Fonterra and relatively low borrowing costs.

Those conditions have strengthened operating margins on farms and encouraged capital to be directed towards productive dairy land. The information links the stronger margins and increased capital allocation with the revaluation of the fund’s property assets.

Market liquidity for farmland in the region is also being shaped by limited supply. Demand from competing buyers continues to exceed the number of quality dairy units available for purchase, according to the source.

The imbalance has maintained upward pressure on land values measured per hectare. Rural-property sales and total transaction turnover are both materially higher on an annualised basis, while the availability of suitable dairy units remains constrained.