Executive Summary

Elders Rural Property Update shows a strong increase in median price per hectare at national level driven by a rebound in transaction volume in New South Wales. This contributed to a higher proportion of grazing and lifestyle properties in the overall mix compared to Q2-2022.

Nationally, median price per hectare increased by 11.2 per cent (pc) in Q2-2022, taking the quarterly median price to $7,339 per hectare (ha). Transaction mix swung back to higher priced states, particularly New South Wales, with transaction volume was 2.3pc higher totalling 1,569.

At state level, Western Australia recorded the highest growth in median price per hectare in Q2-2022, up 42.6pc compared to Q1-2022 at $8,157/ha. South Australia recorded the second largest increase, up 20.8pc in Q2-2022 to $6,429/ha. In contrast, median price per hectare declined in Victoria, down 10.2pc to $11,369/ha.

Transaction volume tightened further in six of the seven states analysed, with only New South Wales recording an increase, up by 38.3pc in Q2-2022.

The national one year rolling median price per hectare increased by 3.3pc in Q2-2022 to $7,452/ha. The one year rolling median price per hectare increased across all states and territories, ranging from a 19.1pc increase in the Northern Territory to a 0.6pc increase in Victoria. The value of rural property traded totalled $3 billion, up 1.6pc compared to Q1-2022.

Following on from Q1-2022, interest rates continued to rise in what will become a consistent trend for the coming quarters. Despite interest rates being the most topical driver of property markets they haven’t had the most impact in the first half of 2022.

Instead, operating factors and seasonal conditions have controlled listings. Every state and territory recorded a decline in transaction volume over the past year; as volumes tighten the quality and type of properties selling varies considerably. As the pool of transactions shrinks, quarterly median price per hectare becomes more volatile, increasing the importance of understanding the underlying trend, which remains positive in every state and territory.

Potential sellers remain torn between selling at high prices and running profitable businesses. Spring and Summer will no doubt provide an increase in buying opportunities, but we expect any increase in supply to be met with a high level of demand into 2023.

Elders Rural Property Update aggregates transaction data from 39 regions across Australia. To get in touch please refer to the ‘For More Information’ page at the end of this update.