Fewer farms were sold in the three months to March but the average sale price was higher, latest Real Estate Institute figures show.
In the March quarter 376 farms were sold, a fall of 21 or 5.3% compared with the March 2012 quarter.
The median price for all farms sold in that time rose to more than $22,000 a hectare, an 11% increase on the previous year.
Grazing properties made up more than 40% of the sales and dairy properties about 20%.
The institute's rural market spokesperson, Brian Peacocke, says despite widespread drought conditions, the level of buying activity around the country indicates an underlying level of confidence in the medium to longer term.
He says there's been a good level of sales in the dairy sector in the top half of the North Island, although some areas report a shortage of listings due to drought conditions.
There has also been strong demand and a shortage of supply of maize growing and dairy support properties in the Waikato.
Larger scale dairy units in Canterbury are in demand, and in Southland good finishing properties are being bought by neighbouring dairy farmers and corporate interests in larger scale dairy farms.
