Wellington  - New Zealand farms are fetching record prices, defying the worldwide property market and the slowing economy, the Real Estate Institute reported on Monday.

The median price paid for dairy farms rose 50 per cent in the last year to top 4 million New Zealand dollars (3 million US dollars) for the first time in May, the institute said.

Record international prices for milk products have fuelled interest in dairying but the institute said that all types of farms were setting records with rural confidence showing no signs of waning.

"While the economy might not be in the best of shape and the fuel price shock can be expected to hit farming quite seriously, so far that's not apparent in the latest sales figures," said spokesman Peter McDonald. (dpa)