The price of Australian farm land continues to extend with costs up 20 per cent previously 12 months, marking a ninth consecutive yr of progress.
The newest knowledge from Rural Bank reveals the value of agricultural land has risen 167 per cent since 2014, fuelled by sturdy demand and more and more tight provide.
“Farmland values maintained strong growth momentum in 2022 as the national median price per hectare increased by 20 per cent to $8506 per hectare,” stated Rural Bank’s Andrew Smith.
The knowledge confirmed 2022 as the primary time in virtually three many years that progress of greater than 15 per cent was recorded throughout all states and territories.
But that progress is predicted to decelerate within the subsequent 12 months.
“The likelihood of lower farm incomes in 2023 has the potential to cause prospective buyers to reassess their purchasing intentions and consequently lead to a shallower pool of buyers,” the report acknowledged.
“We do expect this current year to still see growth but not at the same level,” stated Mr Smith.
Some of the most important worth hikes have been seen in Tasmania the place on common consumers paid 55 per cent extra per hectare for agricultural land final yr.
“I think what we had found with Tasmania is that it was coming off a lower base historically,” stated Mr Smith.
Victoria, South Australia and Western Australia all had costs enhance by greater than 20 per cent on the earlier yr.
The Northern Territory recorded 108 per cent progress however Mr Smith stated the figures are usually skewed due to the small variety of gross sales.
Queensland additionally recorded a giant enhance within the worth of land and took out the title for probably the most land purchased and offered with 2,497,556 hectares traded.
“We’ve seen some some strong sales in Queensland with just under two-and-a-half million hectares of land traded, and the price was up 19 per cent for the year,” stated Mr Smith.
He stated farming households have been behind the purchases.
“We’ve seen a number of larger businesses aggregating their holdings,” Mr Smith advised AAP.
The report discovered the farmland market continued to expertise progress at a time when the residential sector had slowed down.
“The national average price of residential dwellings fell 5.3 per cent across the year following growth of 25 per cent in 2021,” the report stated.
But whereas farmland values have been up in 2022 there have been far fewer gross sales nationally, with the variety of transactions down by 34 per cent to 6588.
The report concluded 8.8m hectares of land was purchased and offered final yr, value a mixed worth of $11.7b.
“The total number of hectares of Australian farmland sold in 2022 equates to an area similar in size to that of a European country, such as Hungary,” Mr Smith concluded.
Source: www.perthnow.com.au
