This Southland farm was bought for $12,000 in the ‘50s — now it’s worth $14 million

What was once a patch of windswept scrubland south of Invercargill is now at the centre of one of Southland’s most astonishing property stories: a working farm purchased for £6,000 (around $12,000 NZD) in the 1950s has just been valued at over $14 million.

And while the land hasn’t changed hands in over 70 years, what’s changed around it has completely transformed its worth.

From back blocks to goldmine

The 180-hectare sheep and beef property was originally purchased in 1957 by Allan and Moira McKenzie, a young couple who borrowed heavily to leave sharemilking behind and own their own land.

“It was mostly gorse and bog back then,” recalls their son, Neil, who still runs the farm today.

“They had one tractor, no phone line, and a house with gaps in the floorboards. But it was theirs.”

Over the decades, the McKenzies developed the land bit by bit — draining paddocks, planting shelter belts, upgrading fences, and building a successful mixed-stock operation.

They never imagined what it would be worth in 2025.

So why $14 million now?

The current valuation — quietly confirmed by independent appraisers this year — reflects several key changes:

• Dairy conversion potential: The farm borders multiple high-performing dairy units and has access to a reliable water source, making it a prime candidate.
• Subdivision value: District planning changes now allow for lifestyle blocks to be carved off the southern boundary — plots which could sell for $400–600k each.
• Carbon credits and regenerative interest: The farm contains a 12-hectare native remnant, now under QEII covenant, which has attracted interest from buyers focused on biodiversity and carbon offsetting.
• Proximity to key logistics hubs: The property sits within 30 minutes of Bluff and Invercargill Airport, making it more attractive to commercial agri-investors.

Still just a family farm — for now

Despite the valuation, Neil McKenzie says he’s not looking to sell.

“It’s tempting when you see a number like that, sure,” he says.

“But this land has been in the family for three generations. It’s not just soil and fences. It’s our story.”

His kids have shown interest in continuing the work — though the family admits they’re watching the property market closely.

“If the right offer came in, maybe things would change,” Neil says.

“But it wouldn’t just be a sale. It’d be a goodbye to everything we built.”

A sign of what’s happening in rural NZ?

Rural property specialists say this kind of quiet value explosion isn’t rare — it’s just rarely talked about.

“Old farms on the edge of infrastructure corridors are becoming more valuable than people realise,” says one Southland agent.

“Not because they’ve changed — but because the world around them has.”

And in a time when many young Kiwis are locked out of housing, stories like this — of long-held land, bought cheap, now worth millions — offer both inspiration and frustration.

Because yes, the McKenzies bought smart.

But they also bought at a time when $12,000 could still change a family’s future.

Now, that same piece of land is worth more than most people will earn in a lifetime.

And it’s still growing grass.