The Bay of Plenty has recorded the largest increase in rural property sales across the country for the three months ended June 2014.

Farm sales registered record prices in June.

The Real Estate Institute of NZ is reporting very solid sales activity in the horticultural sector, particularly in the Bay of Plenty, and a median sales price per hectare across the country of $193,745. The figure for the same period last year was $120,345.

There were more than 27 rural property sales in the Bay to the three months ended June, ahead of 12 sales in Otago and 11 in Northland.

The median horticulture farm size for properties sold in the three months ended June 2014 was seven hectares.

NZREI reports a significant drop in dairy farm sales for the period, with most activity in the Waikato and Southland.

There are consistently steady sales of finishing and grazing properties, particularly in Auckland and Hawke's Bay in the North Island and Canterbury, Otago and Southland in the South Island.

'Sales volumes and prices for the three month period to June 2014 reflect the trends shown in the overall market in recent months,” says REINZ Rural Spokesman Brian Peacocke.

'While figures for the 12 month period show a strong lift, from a monthly perspective evidence suggests steady incremental increases rather than ongoing dramatic surges.

'As expected for the cross over period from one season to the next current activity is reported as being reasonably quiet.

"Farmers and market observers alike are cautiously gauging the potential impact on the forthcoming sales season as a result of clear signals regarding a possible reduction in incomes from the mix of lower product prices, rising interest rates and the very strong New Zealand dollar.”

Grazing properties accounted for the largest number of sales with 43.4 per cent share of all sales over the three months to June.

Finishing properties accounted for 21.1 per cent, dairy properties accounted for 12.7 per cent and horticulture properties accounted for 10.5 per cent of all sales. These four property types accounted for 87.7 per cent of all sales during the three months ended June 2014.

For the three months ended June 2014 the median sales price per hectare for dairy farms was $33,543 (69 properties).

The median sales price per hectare for grazing farms for the same period was $15,833 (236 properties). The lifestyle property market saw a 10.8 per cent fall (-191 sales) in sales volume in the three months to June 2014 compared to June 2013.