Farm sales in February were down slightly on last year’s levels, and the previous monitoring period this year.

In the Real Estate Institute’s latest figures, 204 farms changed hands in the three months to February this year, compared to 205 at the same time in 2010.

The farm statistics were slightly skewed by the purchase of a 1,000 hectare property in the Hawke’s Bay, which reached in excess of $9 million, raising the median finishing price more than $50 thousand.

Peter McDonald, from the Real Estate Institute, says there is an increase in interest across the board for farming properties, following rising on farm returns. 

"Stats are showing a stronger level of interest in farms, especially dairy blocks.

"That's also flowing through to sheep and beef units."

Peter McDonald says anecdotal evidence suggests banks may be starting to gain confidence in farmers again, which is being well received. 

"What we're seeing now is the banks reviewing their situation, with the increase in payout and the increase in profitability on farm.

"As you would expect, the banks are reviewing things and the major lenders are lightening up their criteria a little bit."

The REINZ report also shows increased interest in both lifestyle blocks and dairy support pasture, an area which has been quiet for the last 3 years.

For the full report, click here.