Dairy and dairy support properties in Otago are attracting strong interest, along with properties in Southland with soils capable of sustainable wintering, Real Estate Institute of New Zealand rural spokesman Brian Peacocke says.
REINZ data showed there were 82 more farm sales nationwide for the three months to July than for the corresponding period last year.
The median price per hectare for all farms sold in the three month period was $20,667, an increase of 15.1% on the $17,955 recorded for the three-month period ended July 2012.
Ideal late winter and early spring conditions, combined with solid payout predictions for primary produce, had raised levels of confidence in the rural sector, Mr Peacocke said.
Demand for quality farms was strong across the country and, in most regions, early signs indicated a shortage of supply for the spring selling season, he said.
Calving activity had reduced sales of dairy farms in July, but sales of finishing and grazing properties had remained at ''healthy levels'' in the top half of the North Island, as well as in Canterbury, Otago and Southland. Sales for other farm types had remained light, he said.
The lifestyle property market registered an 18.2% (or 276 sales) increase in volume in the three months to July, compared to the same period last year.
Otago recorded the third-largest increase in sales compared to July 2012 (up 25), and the largest increase in sales compared to June 2013 (up 14).
Rising residential prices in the major cities were providing additional stimulus.
Demand for lifestyle properties rose the most in rural Auckland and Canterbury and demand in Waikato was also rising, in response to higher Auckland house prices, Mr Peacocke said.