Nearly 7000 properties have been valued for the Gore District Council based on their quotable value, reflecting the price of sale on July 1 last year.
A joint statement from the council and Quotable Value (QV) said the district as a whole had grown to a value of $5.59billion over the past three years, a 2.8% increase.
Within that, land value sat at $2.88b, a 0.4% increase.
However, the statement said variations between residential, lifestyle and the rural sector told a different story than just steady growth.
The residential market in Gore increased in value by 10% to 15%, a change driven by first-home buyers and investors, with strong value for entry-level homes and modern buildings.
But farming properties — which account for more than a quarter of the district’s value — had gone the other way as a range of factors depressed the properties’ likely prices.
QV lead valuer Brendan Tancredi said the value of pastoral properties, which made up 26.8% of the district’s total value, had declined by 8.7%.
Difficult seasons since 2022, increased costs, compliance pressures and uncertainty around commodity price caused values to drop from three years ago.
He said sheep farmers, affected by low sheepmeat prices, particularly felt the drop while cropping, beef and dairy operations were steadier.
The loss of tree-planting options which underpinned the value of harder hill country properties had affected farms’ values.
Mr Tancredi said it had been a difficult few years and sales through the period showed values falling 5% to 20% on average. The largest declines were on properties physically restricted to sheep-based systems.
He said that, despite the volatility, confidence was slowly recovering, but this had not yet translated to higher farm values, with a focus on buckling down rather than reaching out.
"While commodity prices have lifted recently and confidence is improving, most farmers are still focused on restoring their balance sheets rather than paying more for land," he said.
Dairy properties, comprising 10.9% of the district’s value, experienced an average growth of 0.9%, with steadier commodity prices and a continued attraction for buyers. Fonterra’s consumer brand sales had given a boost to confidence in the industry.
On the residential side of the market, there had been a rise in value for larger and older family homes, which helped to drive the increases for residences across the district, Mr Tancredi said.
The market had been flat in Mataura over the past three years based on a higher proportion of poor-condition dwellings with higher costs of renovations.
But Mr Tancredi said other areas had experienced increases.
"Some of the smaller townships are starting from a low home-value base, so even modest dollar gains can show up as quite high percentage increases."
Bayleys Real Estate Agent Julie Mitchell said Gore was a superb place to live, with plenty to do.
She said it was interesting how adaptable the district was.
Property Brokers sales manager and consultant Tara Maxwell said it was a good time to get into the property market in Gore and encouraged people to get a home.
"At the moment, with rents being pretty high, with the changes to the Residential Tenancy Act, you want a bit more security to where you’re living."
Gore was good for families and first home buyers alike, Mrs Maxwell said.
Gore District Mayor Ben Bell said the steady residential increases meant affordable housing was proving a drawcard for families and businesses.
Commercial and industrial properties sat at 9.4% of the district’s value with an increase of 9.6% and 14.3% respectively.
Mr Bell said the improvements in the confidence of the economy and the central nature of the Gore district were key strengths.
"Gore’s strategic location on key transport routes, combined with its skilled workforce and proximity to processing facilities, positions the district as a vital link in Southland’s agricultural economy," he said.
"This confidence is reinforced by ongoing investment in infrastructure and services that support business growth."
Mr Bell said the decline in pastoral values did not affect the overall positive picture for the district.
Its affordability, connectivity and opportunity alongside residential growth, industrial confidence and community support placed it well for families and businesses looking to set up in Southland, he said.
