Farm sales for the three months ended September have increased 56.7% on the corresponding time last year, figures released by the Real Estate Institute of New Zealand show.
There were 257 farm sales in the three-month period, compared with 164 in the corresponding period in 2010.
Excellent early spring conditions and, for many, the best growing conditions in years combined with strong income levels was generating "cautious optimism" in the rural sector. That was being reflected by the banks' increased appetite for lending to farmers, REINZ rural market spokesman Brian Peacocke said.
Sales volumes reflected the early spring period, with many marketing programmes just commencing.
Early signs indicated higher expectations for volumes and prices as market momentum increased.
Supply of listings in some areas was becoming short, although the volume of properties available was higher than at the corresponding time last year.
The median price per hectare for all farms sold in the three months to September was $17,694, compared with $15,148 in the three months to August, and $17,447 for the three months to September last year.
Sales for the 12 months to September totalled 1053, the highest in more than two years.
Eight regions recorded increased sales volume for the three months ended September, with Wellington recording the largest increase (up seven sales).
Six regions recorded fewer sales, with Southland recording the largest fall (down 11), followed by Otago (down nine) and West Coast (down 6).
Included in sales for the month of September were four dairy farms at an average sale value of $32,334 per hectare.
The lifestyle property market remained "patchy and variable" from region to region, Mr Peacocke said.
The level of activity was indicative of the economic mood, but there was a sense of people holding back waiting to see how the market developed.