There has been a sharp drop in the REINZ's Dairy Farm Price Index, which was down 9.1% in the three months to June compared to the three months to May.
That means it is now down 18.1% compared to the same period last year.
The median sales price per hectare for dairy farms was $32,615 in the three months to June, compared to $33,507 in the three months to May and $35,531 in the three months to June last year.
The Index adjusts for differences in farm size and location, while the median price per hectare does not.
The number of dairy farm sales has also declined significantly, with 46 sales in the three months to June compared to 60 in the three months to May and 64 in the three months to June last year.
However, sales of other types of farming properties have held up reasonably well, with 472 farms of all types selling the three months to June compared to 489 in the three months to May and 479 in the three months to June last year.
The REINZ All Farm Price Index was down 4.3% compared to the same period last year.
"Sales volumes for the three months ending June 2016 reflect a reasonably stable rural market with finishing, grazing, arable and horticultural categories maintaining the status quo," REINZ rural spokesman Brian Peacocke said.
"Dairy farm volumes, however, have eased 23% from the previous period."
Grazing properties were the most popular, accounting for 36% of sales in the three months to June, followed by finishing properties 23%, horticulture properties 16% and dairy properties 10%.
The lifestyle block market remains buoyant, with 2480 lifestyle properties selling in the three months to June which was down slightly from the 2518 sold in the three months to May but still up 19% compared to the three months to June last year.
The median price of lifestyle properties has risen by $30,000 in the last month and is now at a record high of $580,000.
In the year to June, 8967 lifestyle properties have been sold with a record collective value of $6.67 billion.
"The lifestyle market is very similar to the residential market with strong demand across the country with the greatest limitation being the availability of properties for sale," Peacocke said.
"Indications form around the country suggest the current robust market is likely to continue for some months yet."
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