The median farm price in Otago dipped to just over $535,000 in September, dropping from more than $930,000 in August.

Peter McDonald of the Real Estate Institute of New Zealand says while it may look like a $400,000 drop, it just means less valuable farms sold during the period.

Only eight farms sold during September, consisting of six special, and two grazing farms.

Fifty lifestyle blocks sold in September, with the median price rising to $385,000 in September, up from $315,000 in August.