The rural property market in the NSW Upper Hunter is reaching record levels, according to a stock and station agent based in the region.

With its diversity as a strong thoroughbred horse and beef cattle-breeding region, some rural properties in the Upper Hunter are fetching prices up to 30 per cent above what was being reached a year ago.

Michael Burke has worked in the Upper Hunter's rural and stud property sales industry since 2003, and is based in Scone.

He said in the last six months alone, his agency had sold 14 rural properties. The agency's yearly sales average is 10 to 20 properties.

"It's certainly a record number of transactions for our own agency," he said.

"Twelve months ago, it was a different ballpark. Twelve months ago we were smack bang in the middle of a very, very dry season here. The cattle market was pretty depressed.

"I would suggest [the property] market has lifted by as much as 30 to 40 per cent in isolated occurrences."

Mr Burke said properties had been fetching prices from $900 per acre up to $1,860 per acre.

"We've not seen prices like that here, in my experience, ever," he said.

Strong beef cattle industry enticing buyers

Michael Burke reports some rural properties are fetching prices up to 30 per cent more than a year ago. ( 1233 ABC Newcastle: Robert Virtue )

With the Upper Hunter region enjoying a strong surge in the beef industry, Mr Burke said it was a major factor for the increased investment in property.

"There's no doubt that [increase in beef prices] probably has led to beef property investment becoming fashionable again as an alternative source of investment," Mr Burke said.

"I call it the 'water cooler phenomenon', where it's now becoming fashionable in Sydney to actually discuss cattle prices again, and people are excited about what's happening with our market."

Mr Burke said the clientele buying the properties tended to be wealthy people from Sydney and other metropolitan areas, some local buyers, and a "smattering" of foreign investors.

He said the overseas buyers were from China and other countries.

"There's certainly been optimism here for the last two to three years about what's happening in Asia and what's happening with their growing middle class," Mr Burke said.

"There certainly is that level of interest [from China], but it's not as strong as it once was.

"We're now dealing with other companies from overseas.

"There's now that level of confidence which people are seeing realised each week on the spot-market for beef cattle.

"Providing our dollar has come back to the point of where it was and our season's actually rolled with it, it's certainly reached the levels of where we wanted it to be."

Agent says high prices are sustainable

Mr Burke said as long as the beef industry continued to remain strong, the record property prices in the Upper Hunter would remain sustainable.

But he said, with the volume of property sales being high, agents could face some issues in the new year.

"The cattle market itself has picked up so quickly and, subsequently, the property market went with it, so it will probably follow that trend to a certain extent," he said.

"If the cattle market finds this new floor and this is where it stays, I think the property market itself will retain its strength and keep going forward.

"The problem for rural property agents next year will be the availability of stock to sell."