Elders Rural Property Update has been released today, analysing the movement of rural property values for quarter two of 2023.
The update shows that land prices across the country edged higher at a national level while transaction volume once again contracted. Transaction mix favoured smaller parcels under 200 hectares which characteristically sell for a higher price per hectare.
Elders General Manager Farmland Agency and Agribusiness Investments, Mark Barber, said that low transaction volume continues to characterise the market.
“Low volumes indicate that property owners are seeing through short term commodity price volatility and seasonal conditions and are making a conscious decision to continue to invest in agricultural land. This confidence, combined with the strength in farm balance sheets, familiarity with advantages of investing in the agricultural sector, are very supportive of land values. Those wishing to buy need to take this into account.”
Key points:
- The 1 year (yr) rolling national median price per hectare (ha) increased by 0.1 percent (pc) to $7,963/ha.
- 1yr rolling transaction volume declined by 9.1 pc to 6,180 totalling $13.5 billion.
- The five-year compound average growth rate (CAGR) was 8.5 pc to the end of June 2023, indicating the median price per hectare is doubling every 8.5 years.
At state level the 1yr rolling median price per hectare recorded strong gains in Australia’s highest priced states Victoria and Tasmania. Tasmania recorded a sharp increase of 19 pc to $12,896/ha driven by the high value North West region. Median price per hectare increased by 4.5 pc in Victoria to $13,475/ha, maintaining the tag of Australia’s most expensive state, driven by strong gains in the Central and South Central regions.
In other markets, the Northern Territory increased by 5.1 pc driven by an increase in sales in the Top End region. Median price per hectare was flat in Queensland and Western Australia while South Australia recorded a decline of 4.1 pc driven by fewer transactions in the high value South East region.
Elders source transactional level data for every rural property sale above 40 ha in Australia from Corelogic before undertaking in-depth analysis to remove non-agricultural land uses and statistical outliers. Analysis and commentary is provided by Elders’ national network of rural real estate experts.
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