The Australian rural property market cooled a little in the first quarter of 2024 according to Elders Rural Property Update.
The Elders National Rural Property Indicator* fell 4 per cent during the quarter to $10,427/ha, however, it remains 3 per cent above the levels of the same time last year.
Overall activity fell, with the number of properties sold during the first quarter of 2024 down 9 per cent compared to last quarter and 17 per cent under year ago levels. This is the lowest turnover (by number of transactions) on record, slightly below the previous low set in Q2 2023.
While most of the key drivers remain neutral or supportive, the very dry autumn experienced across southern Australia has seen farmer confidence dip, creating headwinds for rural property prices in those areas.
Elders Head of Farmland Agency and Agribusiness Investments, Mark Barber, said “The market has been underpinned by good quality commercial and corporate sized transactions which have sold well to strong inquiry.
“Activity at the other end of the market has been more subdued with a greater proportion of deals subject to debt funding coming under increased scrutiny by financiers and attracting subdued buyer inquiry”.
The largest reductions were seen in Victoria/Tasmania where prices fell 15 per cent compared to the final quarter of 2023 to sit at $14,198/ha, 8 per cent below the level of the same time last year. Similarly, South Australian rural property values declined by 4 per cent on a large lift in the volume of properties sold during the peak South Australian selling season.
The strongest markets were in Western Australia and Queensland/Northern Territory where prices were up 8 per cent and 5 per cent respectively. In Western Australia, the firm prices were a result of solid gains in southern higher rainfall zones driven by forestry industry buying.
Richard Koch, Elders Market Insights Business Analyst, said “In Queensland/Northern Territory firm prices were a result of a strong northern wet season and the positive outlook for the cattle industry.”
On outlook, Mr Barber commented “As we move through the winter season, improved seasonal conditions and stronger commodity markets are likely to see values return to long term trends.
“High-quality, well -presented properties continue to be in strong demand irrespective of where they are. Indications from the Elders team in southern areas are that property prices are starting to strengthen as farm incomes improve and on forecasts of a normal or better spring.”
Click here to read the full Q1 2024 report now.
*Elders National Rural Property Market Indicator is the sum of each state rural property price indicator weighted by the number of sales for that state as a proportion of total sales since 2016.