The Real Estate Institute says the demand for top quality farms is outstripping supply.
Latest sales figures show almost 400 farms were sold during the three months to the end of January, an increase of 13% on the same period a year ago.
The median price per hectare also increased by more than 18%.
Strongest demand is for dairy farms in the South Island and sheep and beef farms in the northern part of the country.
NZREI rural market spokesperson Brian Peacocke said the supply of listings is barely able to keep up with demand and he expects that trend to continue over the next few months.
There has also been a new surge in demand for lifestyle blocks.
Sales for those are more than 20% up on a year ago and the median price reached a new record of almost $500,000 last month.
