Farm prices rose in the December quarter compared to the same period of 2015 although the number of sales was down.
The latest Real Estate Institute of NZ figures show that 499 farms were sold in the three months to December, down 8.8% compared to the same quarter of 2015, while the REINZ's All Farm Price Index, which adjusts for differences in farm size, location and type, was up 4% compared to a year earlier.
The median price per hectare of all farms sold in the three months to December was $27,774 which was down 1.2% compared to a year earlier.
In the dairy sector, 72 dairy farms were sold in the three months to December which was down 16.3% compared to a year earlier, while the REINZ Dairy Farm Price Index was up 1.9% compared to December 2015.
"Demand for good property remains constant, with limited activity surrounding the lesser quality properties," REINZ rural spokesman Brian Peacocke said.
"Reduced production from a national perspective, particularly in the dairy sector, is the result of an unseasonably late spring, mainly due to the volatile weather conditions."
Grazing properties accounted for the largest number of sales with a 31% share of all sales over the three months to December, while finishing properties made up 27% of sales, dairy properties 14% and horticultural properties 12%.
On the lifestyle front, 2191 lifestyle properties were sold in the December quarter, down 3.8% compared to the same period of 2015, while prices continued to climb.
The median price of all lifestyle properties sold in the three months to December was $583,000, which was a record high and up 6% compared to a year earlier.