BARGAIN hunters are snapping up cheap dairy farms in northern Victoria and the Riverina.

Some real estate agents have reported increased inquiries in purchasing dairy operations across northern Victoria and into the Riverina following improvements in the season and brighter commodity price outlooks.

Kevin Hicks Real Estate director Darren Scott said some properties in the region were "still cheap enough" for people to move into dairying.

He said one of his listings, a dairy farm in the Numurkah region, was an example of a "good starter farm."

The property has been listed for about $550,000 and includes 121ha, a four-bedroom house, 16-a-side swing-over dairy and a stock and domestic bore.

The availability of water will continue to play the biggest part of in determining farm price-tags.

DLS Rural Property Specialists real estate manager Andrew Gilmour said the inquiries about farms had been building slowly for the past couple of months and had stepped up recently.

"It's (because of) optimism to do with milk price and the seasons seem to be changing," Mr Gilmour said.

"The farms are better value on a per acre basis than what you would buy in Gippsland or western Victoria.

"Dollar for dollar, you can buy a hell of a lot better in northern Victoria than you can elsewhere," Mr Gilmour said.

He said interest has come from locals, who would use the properties to expand their own operations and overseas buyers who want to move into the Australian dairy industry.

Mr Gilmour, who is based at Cobram, said he had sold many large dairy farms by marketing them at field days in New Zealand in a bid to entice farmers across the Tasman.

He said water had been a prerequisite for overseas buyers.

"There's resistance to supply finance for anything that hasn't got a water right with it unless it's for a local buyer," he said.

Rodwells northern Victoria and Riverina agent John Morris said some farmers viewed the region as more viable since farms without water had dropped in value and the price of feed had decreased.

Mr Morris said farmers could move into the industry for a smaller price and be lotfeeding immediately.

He said additional water could be bought later.