Farmland values revealed in major Rural Bank report

A major report has revealed prices for farm sales across the country. See which state has the most expensive farmland and which has the cheapest.

Farmland values have increased for the seventh consecutive year.

A stronger picture of the red hot rural property market has emerged, with a major report finding Australian farmland values have increased for the seventh consecutive year.

Yet agents say this may be the tip of the iceberg, with the rise escalating in the first four months of 2021.

The report, realised by Rural Bank today, found the median price per hectare of Australian farmland increased by 12.9 per cent in 2020 to $5907 per hectare.

Rural Bank’s report found the median price per ha in Victoria increased 6.9 per cent last year to a record $8114 and in NSW it is increased by 15.6 per cent reaching a record of $5855 while in OLD it increased by 11.8 per cent to $5200.

In Tasmania, the median price per ha increased by 25.3 per cent to $13691, in WA it increased by 19.3 per cent to $3066 and in NT it increased by 65.2 per cent to $3392.

All states saw the median price per ha grow – for the first time in 15 years.

It comes as The Weekly Times recently reported the rural property market has been catapulted into uncharted territory this year with farms across the state selling for record prices.

See the full national break down for 2020 below.

VICTORIA:

THE median price per ha increased by 6.9 per cent to a record $8114.

THE number of farmland transactions increased by 10 per cent to 1611.

THE total value of farmland traded was about $1.2 billion, a year-on-year increase of 17.1 per cent.

THE area of farmland traded was about 202,000 hectares, an increase of 21.6 per cent.

SOUTH west and north west Victoria saw the largest year-on-year increase in median price

per ha, up by 14.3 and 11.9 per cent respectively.

NSW:

THE median price per ha increased by 15.6 per cent reaching a record of $5855, the seventh consecutive year of growth.

THE area of farmland traded was about 1.42 million ha, an increase of 5.5 per cent.

THE total value of farmland traded was about $3.7 billion, an increase of 19.9 per cent.

THE number of farmland transactions increased by 24.8 per cent to 3073.

WESTERN and Central NSW were the top performing regions, reporting agrowth of 37.5 and 25.5 per cent respectively in median price per ha.

QLD:

THE median price per ha increased by 11.8 per cent to $5200, a strong recovery following a 0.8 per cent decline in 2019.

THE area of farmland traded was about 3.7 million ha, a decrease of 9.6 per cent.

THE total value of farmland traded was about $2.9 billion, an increase of 16.5 per cent.

THE number of farmland transactions increased by 20.1 per cent to 1904.

WEST Queensland was the top performing region, reporting a significant growth of 39.4

per cent in median price per ha. In contrast, North Queensland decreased by 1.3 per cent.

SOUTH AUSTRALIA:

THE median price per ha increased by 10.9 per cent to $5482 per ha, reaching a record high.

AN estimated 208,049 hectares of farmland was traded, 4.8 per cent less.

THE total number of transactions declined by 1.4 per cent, to 683.

THE total value of farmland traded was $736.9 million, a decrease of 2.6 per cent.

THE Yorke and North region recorded the strongest growth with the median price per ha

increasing by 29.9 per cent. The Adelaide and Fleurieu region saw a jump of 23.3 per cent in

median price per ha following a poor 2019.

TASMANIA:

THE median price per ha of farmland in Tasmania increased by 25.3 per cent to

$13,691 per ha in 2020, pushing further into record territory.

AN estimated 29,018 ha of farmland was traded in 2020, almost identical to the area

traded in 2019.

THE total value of farmland traded was $321.4 million, an increase of 43.1 per cent.

THE total volume of farmland transactions declined by 2.2 per cent to 223.

THE North West region experienced the largest increase in median price per ha,

recording a 26.7 per cent increase.

WESTERN AUSTRALIA:

THE median price per ha increased by 19.3 per cent to $3066 per ha in, following an increase of 29.1 per cent.

THE number of farmland transactions decreased by 3.1 per cent to 664 which is 22.2

per cent below the 20-year average of 854 transactions.

THE area of Western Australian farmland traded was about 526,000 ha, an increase of 1.1 per.

THE total value of farmland traded was $995 million, a slight decrease of 0.7 per cent.

THE South Coast and Northern regions recorded the largest growth at 21.7 and 20.5 per cent

respectively.

NORTHERN TERRITORY:

THE median price per hectare of farmland increased by 65.2 per cent to $3392. This followed a decrease of 53.9 per cent in 2019.

MOVEMENT in the median price per ha of Northern Territory farmland is largely a factor of

the proportion of properties traded in the two distinct categories of land types – top end and

cattle regions – and the low number of transactions, more so than a change in the market.

THE cattle regions recorded a 39.2 per cent increase in median price per ha, although the number of transactions declined from 10 to four.

THE median price per ha for the top end declined by 3.6 per cent and the number of

transactions increased from 20 to 25.

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