Australian farmland values show signs of stabilising amid record low sales

Australian farmland values have recorded their slowest growth in over a decade, with transaction volumes hitting record lows as buyers resist sellers’ price expectations.

The national median price for farmland reached $10,141 per hectare in the first half of 2024, rising 12.2 per cent year-on-year but falling 0.1 per cent from the previous half.

Rural Bank Senior Manager Industry Affairs Neil Burgess said property sales had declined significantly.

“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,” Burgess said.

Regional variations emerged across the country, with Queensland and New South Wales both recording 5.6 per cent growth.

Tasmania saw the strongest growth at 16.5 per cent, while Western Australia experienced the largest decline at 12.1 per cent.

Mixed market conditions influenced buyer behaviour nationwide.

“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,” Burgess said.

Tasmania’s Northwest region recorded the highest median farmland value at $28,827 per hectare.

Victoria’s South and West Gippsland followed at $28,062 per hectare.

The market outlook remains cautiously optimistic despite current challenges.

“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,” Burgess said.