Rural Bank Australian Farmland Values – Mid-Year Update 2024: Farmland Values Stabilise as Property Transactions Decline

Australian farmland values continued to grow during the frst half of 2024, though at a more moderate pace. The median price of farmland reached $10,141 per hectare, a 12.2% increase from the previous year and the 22nd consecutive period of year-on-year growth. However, growth has slowed, with the median price essentially unchanged from the second half of 2023, registering a minor 0.1% decline. Additionally, farmland transactions have tightened further as properties took longer to sell, with volumes hitting record lows.

Key Highlights:

• Median Farmland Price (H1 2024): $10,141/ha

• Price Change from H2 2023: -0.1%

• Price Change from H1 2023: +12.2% Regional Performance:

• Queensland: Continued strong growth, especially in the

Central Highlands and Southeast, with a median price of $9,777/ha (+5.6% from H2 2023, +17.0% year-on-year).

• New South Wales: Similar growth pattern with a median of $9,745/ ha (+5.6% from H2 2023, +13.4% year-onyear).

• Victoria: Farmland values plateaued, registering a half-on-half decline of 6.7%, with a median price of $14,562/ ha (+1.9% year-on-year).

• Tasmania: Strong growth in the North pushed the state median to $23,022/ha (+16.5% from H2 2023, +7.5% year-on-year).

• South Australia: Median prices fell 11% from record highs in 2023, reaching $7,890/ ha, but still saw 7.7% year-on-year growth.

• Western Australia: Battled dry conditions, leading to a 12.1% drop in median prices to $6,846/ha, though up

24.7% year-on-year.

Neil Burgess, Rural Bank’s Senior Manager of Industry Affairs, emphasized that while farmland values have stabilized, transaction volumes have fallen sharply, down 18.7% year-on-year and 4.8% below the previous half-year. He attributed this to buyers struggling to meet sellers’ price expectations. Looking Ahead

The traditional drivers of farmland values

– commodity prices, seasonal conditions, and interest rates – showed regional variation in the frst half of 2024.

While Queensland and NSW enjoyed favourable rainfall, southern and Western Australia experienced challenging dry conditions. Despite these mixed factors, the longer-term outlook remains optimistic, with farmland values expected to hold steady in the second half of 2024. Possible interest rate cuts in early 2025 could further stimulate demand.

Most Valuable Farmland by Region (H1 2024):

• Tasmania (Northwest): $28,827/ha

• Victoria (South and West Gippsland): $28,062/ha

• South Australia (Adelaide and Fleurieu): $20,886/ha

• Western Australia (Southwest): $17,236/ha

• Queensland (Southeast): $16,335/ha

• NSW (Hunter and North Coast): $13,100/ ha

For further insights and detailed regional performance, please refer to Rural Bank’s full report via the QR code below.