Rural Bank Australian Farmland Values
Mid-Year Update 2024: Farmland values stabilise as number of property transactions tightens
Australian farmland values have continued to grow through the first half of 2024, albeit at a slower pace, with the 1H 2024 median price of farmland now standing at $10,141/ha. This represents a rise of 12.2 per cent compared to a year earlier and is the 22nd consecutive half-yearly period of year-on-year growth.
While there was growth on a year-on-year basis, as previously forecast in our May report, the median price in the first half of 2024 was essentially unchanged from the second half of 2023 with a fall of just 0.1 per cent and further contraction in the number of farmland transactions recorded as properties took longer to sell.Neil Burgess, Rural Bank Senior Manager Industry Affairs said: “At a national level, the story is essentially about stability in values with transaction volumes continuing to tighten as buyers increasingly fail to meet sellers’ price expectations.
“Transaction volumes are now at a record low, down 18.7 per cent year-on-year and 4.8 per cent below the second half of 2023, a consistent trend since reaching a peak in the first half of 2021.
“On the upside, Queensland, particularly in the Central Highlands and Southeast and the Hunter and North Coast of New South Wales saw a continuation of strong growth trends due to more favourable seasonal conditions supporting buying intentions, and Tasmania also saw stellar growth in the North, boosting the median price per hectare for the island state.
“Victorian values have plateaued over the past 18 months, with the first half of 2024 registering a half-on-half decline. Western Australia and South Australia both battled dry conditions in the first half of 2024 which likely translated into median prices falling from the record highs seen in the second half of 2023, however, both these states saw continued growth on a year-on-year basis”.
The major drivers of farmland values – commodity prices, seasonal conditions and interest rates – were mixed across regions and commodities with dry conditions proving challenging for most of southern and Western Australia, while Queensland and New South Wales experienced favourable rainfall.
“The recovery of livestock prices after a disastrous 2023 and an easing in crop prices helps explain the variety in the median price movements we have seen around the country. In general terms, the traditional drivers of farmland values have led to a more subdued buyer appetite”, Mr Burgess said.
"These factors are set to keep farmland values in a holding pattern for the second half of 2024, however, the longer-term outlook appears optimistic as demand may again strengthen if current rainfall forecasts provide a good finish to 2024 and interest rate cuts begin in early-2025”, Mr Burgess concluded.
| Median price per hectare (H1-2024) | Price change from H2-2023 | Price change from H1-2023 | |
| National | $10,141 | -0.1% | +12.2% |
| QLD | $9,777 | +5.6% | +17.0% |
| NSW | $9,745 | +5.6% | +13.4% |
| VIC | $14,562 | -6.7% | +1.9% |
| TAS | $23,022 | +16.5% | +7.5% |
| SA | $7,890 | -11.0% | +7.7% |
| WA | $6,846 | -12.1% | +24.7% |
Australia’s most valuable farmland by State and region.
Tasmania – Northwest $28,827/ha
State median: $23,022ha
Victoria – South and West Gippsland $28,062/Ha
State median: $14,562ha
South Australia – Adelaide and Fleurieu $20,886/Ha
State median: $7,890ha
Western Australia – Southwest $17,236/Ha
State median: $6,846ha
Queensland – Southeast $16, 335/Ha
State median: $9,777ha
NSW – Hunter and North Coast $13,100/Ha (tied)
State median: $9,745ha
Link to full report here: https://www.ruralbank.com.au/
