Revealed: Victorian farm prices down 15 per cent in a year

A run of poor seasonal conditions has dropped farmer confidence as farm listings dried up and days on market more than doubled. See the details.

Victorian and Tasmanian farmland prices have dropped by 15 per cent since last June. Picture: Yuri Kouzmin

Victorian and Tasmanian farmland values have fallen sharply since last June, with prices slumping following a run of poor seasonal conditions and declining farmer confidence.

The Victorian-Tasmanian rural property indicator fell by 8 per cent in the second quarter of this year to a median of $13,090 a hectare, placing it 15 per cent lower than the same time last year, the Elders Rural Property Update report revealed.

The report also said the value of rural properties sold across Victoria and Tasmania was mostly flat or lower across all regions, including the sharpest declines in the Gippsland and Wimmera-Mallee.

The value of rural property that transacted across the southern states in the second quarter of this year was $212 million, 34 per cent lower than the first quarter of the year and 14 per cent below the same time last year.

“While we have witnessed a general softening in market conditions, demand for quality assets remains consistent throughout most regions of Victoria, Southern New South Wales and Tasmania,” Elders Victoria, Tasmania and NSW Riverina real estate director Nick Myer said.

“Price points are typically now at levels below the peak period in 2022, which is stimulating both new and existing investor interest into the sector.”

The report also said new listings in Victoria and Tasmania contracted sharply, active listings trended down and days on market more than doubled between April and June.

“We would expect a similar trend to prevail into the end of the year, unless seasonal conditions change dramatically. Even then, it may take a little time to turn the market as farmer confidence repairs, farm incomes rise, and funding costs fall”, the report said.

Nationally, the Elders National Rural Property Indicator declined for a second successive quarter by two per cent to $10,186 a hectare at the end of June, a figure 5 per cent above the same time last year.

In NSW the median price per hectare declined by 3 per cent on the quarter to $9788 a hectare, but remains 10 per cent higher than the levels of early last year.

In the sunshine state values remained steady, rising by 2 per cent to $8975 a hectare, a figure 44 per cent higher than a year ago.

Finally, in South Australia farmland values increased by 7 per cent in the second quarter to $9648 a hectare, 10 per cent higher than the same time last year.