THE volume and value of rural property sales across Victoria has dropped for the second year in a row.

Figures in the latest A Guide to Property Values report revealed the total value of all rural sales in Victoria fell 18.5 per cent from $3.74 billion in 2008 to $3.05 billion in 2009.

The number of rural sales dropped by 10.2 per cent last year.

But sales of residential properties in country Victoria increased by 21.6 per cent and the total value of properties sold jumped by 22.9 per cent.

Heathcote and Elmore, in the state's north, were among the towns with the biggest value increases.

Heathcote's average house price increased from $150,000 to $207,500 last year, while Elmore's average price jumped 36 per cent from $122,500 to $166,000.

ResCom Heathcote real estate agent Brad Todd said he had noticed "solid growth" in property prices in and around Heathcote.

He said 80 per cent of property in the area was sold to international or Melbourne buyers looking for a lifestyle change or weekend getaway.

"Prices have gone up and I think that's probably to do with road upgrades," Mr Todd said.

"The Calder Highway upgrade in particular has made Heathcote a lot closer to Melbourne.

"I think a lot of buyers have also been priced out of some of the trendy towns ... and are coming to Heathcote and realising it's a beautiful place to live. I think the prices will steadily continue to rise."

The biggest falls in regional residential prices were recorded in Charlton, down 36 per cent from $132,000 to $85,000 and Sea Lake down 25 per cent from $77,000 to $57,000.

Large drops in value also occurred in Murchison and Lake Wendouree.

The sale of rural properties, that is properties of more than 1-2ha, declined both on the outskirts of Melbourne and in rural Victoria.

In 2008, 7563 rural properties were sold but only 6795 were sold last year.