Elders' business intelligence analyst Richard Koch has reviewed the data and crunched the numbers to reveal the top five rural property livestock regions of 2023.
The single biggest take-out from an analysis of property prices in livestock regions across Australia is that they have largely bucked the trend of falling livestock prices.
After reaching record levels during early 2022, prices for key livestock products have moved back towards long-term averages. However, to counter lower prices for livestock graziers were able to increase turnoff from herds and flocks rebuilt after the drought of 2017-19.
This can be seen in the surge in farm incomes across 2021 and 2022. Higher farm incomes enabled graziers to pay increased values for rural property in the years following the drought through to the end of 2023.
A simple average of the growth rates of rural property values across predominantly livestock regions shows exceptional returns since the drought ended.
Unless we see sustained productivity growth or a resurgence in prices for livestock however, it would seem current growth rates may need to moderate. The desire to achieve productivity growth by increasing farm size appears to be a key factor in driving land values higher.
The selection criteria
In ranking livestock regions across Australia, we have adopted the following selection criteria:
- Liquidity of over 10 sales per quarter; and
- Ranked according to the most recent three-year Compound Average Growth Rate (2021-2023).
We have chosen the three-year Compound Average Growth Rate (CAGR) as it illustrates the region with the most sustained growth over a three-year period. Year on year growth measures can be volatile and may overstate performance, particularly, if a good year follows a poor year.
The winners are...
| Region | 3yr CAGR 2023-2021 | No. of sales | Average size (ha) | Ranking 2021 | Ranking 2019 |
|---|---|---|---|---|---|
| South Australia - Adelaide and Fleurieu | 25 pc | 65 | 121 | 6 | 16 |
| South Australia - north | 23 pc | 85 | 558 | 19 | 9 |
| New South Wales - Northern Tablelands | 19 pc | 203 | 299 | 17 | 1 |
| South Australia - South-East | 15 pc | 70 | 215 | 14 | 2 |
| Queensland - west | 14 pc | 88 | 15,480 | 2 | 19 |
A couple of things to note from the above is that relative rankings bounce around through each of the three-year rankings. This could suggest that the relative profitability of farms in each region fluctuates with the prices paid ie: as prices become too high, buyers look to other regions.
“Over the last three years, South Australia has provided outstanding returns for both productivity and growth in livestock grazing and underlying land prices."
"South Australia offers a diverse opportunity for graziers ranging from highly productive and reliable rainfall parcels close to Adelaide and larger scale holdings with affordable opportunities in the far north”.
- Adam Chilcott, State Real Estate Manager, South Australia
It also comes as no surprise that several of the top ranked regions could be described as lifestyle farming areas. Certainly, in South Australia, Adelaide and Fleurieu Peninsula and the south-east are regions that contain large numbers of lifestyle farms, given its proximity to Adelaide. The remote working trend that has prevailed since 2021 may explain the lift in the value of these properties.
This graph shows the annual median price and the annual number of sales for rural properties (above 40ha) in the Adelaide & Fleurieu region of South Australia. Source: CoreLogic.
- Major centres – Strathalbyn, Mount Barker, Kangaroo Island, Yankalilla, Barossa
- Major rural enterprise - Mixed livestock farming
- Three-year CAGR - 25 pc
View our latest rural real estate listings for Adelaide and the Fleurieu Peninsula.
Number Two — Northern South Australia
This graph shows the annual median price and the annual number of sales for rural properties (above 40ha) in the northern region of South Australia. Source: CoreLogic
- Major centres – Port Augusta, Peterborough, Clare, Jamestown
- Major rural enterprise – Sheep farming
- Three-year CAGR – 23pc
View our latest rural real estate listings for Northern South Australia.
Number Three — Northern Tablelands, New South Wales
This graph shows the annual median price and the annual number of sales for rural properties (above 40ha) in the Northern Tablelands region of NSW. Source: CoreLogic.
- Major centres – Armidale, Tamworth, Glenn Innes, Walcha
- Major rural enterprise – Mixed livestock farming
- Three-year CAGR – 19pc
View our latest rural real estate listings for the NSW Northern Tablelands.
Number Four — South-East South Australia
This graph shows the annual median price and the annual number of sales for rural properties (above 40ha) in the South-east region of South Australia. Source: CoreLogic.
- Major centres – Wattle Range, Naracoorte, Lucindale, Kingston, Grant, Mount Gambier
- Major rural enterprise – Mixed livestock farming
- Three-year CAGR – 15pc
View our latest rural real estate listings for South Australia's South-East.
Number Five — Western Queensland
This graph shows the annual median price and the annual number of sales for rural properties (above 40ha) in the western region of Queensland. Source: CoreLogic.
- Major centres – Blackall, Barcaldine, Winton, Balonne, Paroo, Richmond
- Major rural enterprise – Beef farming
- Three-year CAGR – 14pc
View our latest rural real estate listings for western Queensland.
If you’d like to find out more about your own region or the listings shown above, contact your local Elders real estate manager.
Source data provided by Corelogic and analysed by Elders.
The information contained in this article is given for the purpose of providing general information only, and while Elders has exercised reasonable care, skill and diligence in its preparation, many factors (including environmental and seasonal) can impact its accuracy and currency. Accordingly, the information should not be relied upon under any circumstances and Elders assumes no liability for any loss consequently suffered. If you would like to speak to someone for tailored advice relating to any of the matters referred to in this article, please contact Elders.