Rural
18 October, 2024
Farmland values continue to rise
Australian farmland values have continued to rise in the first half of 2024, with the median price now at $10,141 per hectare—an increase of 12.2% from the previous year. This marks the 22nd consecutive half-year of year-on-year growth.
However, the median price remained stable compared to the second half of 2023, showing a minor decline of 0.1%, as the number of transactions decreased and properties took longer to sell.
Neil Burgess, Rural Bank Senior Manager Industry Affairs, commented on the situation: “At a national level, the story is about stability in values, but transaction volumes are tightening as buyers increasingly struggle to meet sellers’ price expectations. Transaction volumes are at a record low, down 18.7 per cent year-on-year and 4.8 per cent since late 2023.”
Despite these challenges, some regions are experiencing growth.
Queensland’s Central Highlands and Southeast, along with the Hunter and North Coast of New South Wales, have seen positive trends due to favourable seasonal conditions.
Conversely, Victorian farmland values have plateaued, while Western and South Australia faced dry conditions that likely affected prices.
The major drivers of farmland values - commodity prices, seasonal conditions, and interest rates - have shown mixed results.
Mr Burgess concluded that while farmland values may hold steady for the remainder of 2024, the long-term outlook remains positive, contingent on improved rainfall and potential interest rate cuts in early 2025.
“In general terms, the traditional drivers of farmland values have led to a more subdued buyer appetite,” Mr Burgess said.
