Australian Farmland Values Firm

by | Oct 17, 2024 | Australia, Prices

According to Rural Bank’s mid-year update for 2024, land values are growing but at a slower pace, up 12.2% YOY to $10,141/ha.

Farmland values rose 20% to 30% through 2021 and 2022, but stalled to +3.2% YOY in the first half of 2023, improving in H2 2023 to +9.6% YOY. Median prices were steady, down 0.1% from the second half of 2023.

Across the states, Queensland (+17.0% YOY) and NSW (+13.4% YOY) recorded strong growth in median sales price with favourable seasonal conditions in these states supporting buying intentions. In Tasmania, median price was +7.5% YOY with higher prices in the state’s north, while prices stabilised or declined in the rest of the state. In Victoria, values have plateaued in the past 18 months, up 1.9% YOY in H1 2024. The largest declines in prices were in Victoria’s dairying regions while strong growth continued in the Mallee and Central regions. In WA and SA, dry conditions led to median prices declining from H2 2023 to H1 2024, however, prices remain higher compared to the year before.

The number of transactions across Australia continues to slump as transaction volumes fell to a record low of 2,966 in H1 2024, down 18.7% YOY and 4.8% lower than sales volumes in H1 2023. Sales volumes have declined in every half-year period since its peak in H1 2021, with fewer properties listed for sale and listed properties taking longer to sell.

Rural Bank does not expect stable commodity values and improved livestock prices so far in 2024 to be enough to lift interest in farmland.

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