Victoria’s farm prices climbed more than 25 per cent last year with the state’s median price per hectare now $13,000-plus.
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The staggering growth in Victoria coincided with every Australian state and territory recording an increase in farmland value by 15 per cent or more for the first time in 28 years, according to the Rural Bank 2023 Australian Farmland Values report.
Victoria recorded a massive 26.3 per cent rise in the statewide median price per hectare to $13,336 during the last calendar year compared to 2021; the rise was also about seven per cent higher than the national increase of 19.8 per cent to $8506 a hectare.
Rural Bank Australian Farmland Values 2023.
Meanwhile in NSW, there was a rise of 15.9 per cent in farmland values including a 14.7 per cent increase in the Riverina Murray region, lifting the median price per hectare to $6942.
Rural Bank head of agribusiness development Andrew Smith said the past year was the ninth consecutive year of farmland price increases with the national median price rising by 167 per cent at an annually compounded rate of 11.5 per cent.
“The key drivers of farmland values are set to remain in favour of demand exceeding supply through 2023, driving a tenth consecutive year of growth in the national median price per hectare,” Mr Smith said.
Cropping farmland in central and western Victoria recorded major increases in value last year.
In Victoria, cropping country in the Mallee, Wimmera and Central regions recorded the most growth of 45.3, 34.7 and 52.3 per cent respectively.
Mr Smith said the remarkable price growth was driven by a number of large family enterprises expanding their existing holdings, such as when 314ha of farmland near Horsham was sold for more than $10 million in April last year.
Rural Bank Victoria agribusiness manager Kathryn Davies said she was expecting Victorian rural property prices to increase at a slower rate this year thanks to growing economic headwinds.
“With good growing conditions, an easing in some commodity prices from record highs and continued higher interest rates, purchasers are conducting deeper analysis to ensure that higher purchase prices don’t harm the overall returns that can be generated,” she said.
“This will likely lead to lower growth in property prices for 2023.”
Tasmania’s median price per hectare last year reached $22,812 after an incredible 54.9 per cent surge, while a number of notable cattle station transactions fuelled a 108.3 per cent increase in land price in the Northern Territory.
Queensland, SA and WA farmland values also surged last year by 18.9, 23 and 22.5 per cent respectively, taking the median price per hectare in each state to $8119, $7304 and $5121.
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