Property

HRZ farmland shows decade’s highest price growth: ABARES

Grain Central, March 18, 2024

Wynola sold to investors before heading to auction in 2022 to demonstrate how strong demand is for property on the Darling Downs which according to ABARES data was one of the top five regions for price growth over the past decade. Photo: JLL

FARMLAND in high-rainfall zones has experienced the highest rate of average annual growth in price over the past 10 years, according to the latest ABARES data.

The national forecaster said the average price per hectare of broadacre farmland has grown at an average annual rate of 10.09 percent over the 10 years to 2023.

According to the ABARES Farmland Price Indicator, price growth differed between ABARES zones, with the high-rainfall zone experiencing the fastest rate of average annual growth over the past 10 years of 10.49pc, followed by the wheat-sheep zone 10.04pc, and the pastoral zone at 8.3pc.

The ABARES regions that experienced the highest annual growth rates over the past 10 years are Victoria’s Wimmera region on 18.42pc, Queensland’s west and south-west on 18.05pc, and the state’s Darling Downs and Central Highlands on 15.97pc.

The average price per hectare of Australia’s broadacre farmland increased by 131pc over the past 10 years.

​ABARES executive director Dr Jared Greenville said a relatively flat 2023 for farmland prices capped a decade of strong price growth.

“Over the 10 years to 2023, broadacre farmland prices went from $4088 to $9429 per hectare,” Dr Greenville said.

​“Australian broadacre farmland values reached $9576/ha in 2022 but declined slightly by 1.5pc on average through 2023.

​“The slight fall in 2023 contrasts with strong price growth over the past decade, where prices grew at an average annual rate of 10.09pc.”

The volume of broadacre transactions has decreased at an average annual rate of 6.52pc over the past 10 years.

The Farmland Price Indicator provides valuable insight into Australian broadacre farmland prices, to ensure farming businesses can make educated decisions on their farmland assets.

Source: ABARES

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