Rural Bank finds Tasmanian farmland prices the highest in Australia per hectare, by far | Northern Beaches Review

Tasmanian farmland reflects housing and soaring prices.

It is the most expensive agricultural land in the country per hectare, by far.

According to the Rural Bank’s Australian Farmland Values ​​report, Tasmania’s farmland values ​​rose for the third consecutive year in 2021, with the median (median) value per hectare being sold up 7.6% to reach a record high of $14,730.

That was more than double the national median of $7,087, with Victoria the only other state to top $10,000 ($10,583).

However, Tasmania (down 15.2%) and Western Australia (down 6%) were the only states or territories where transaction volume declined, at 189 in the case of Tasmania.

Transactions rose 22.5% nationwide to 10,032, amid what the bank described as a surge in demand.

“Farmland values ​​across Tasmania continued to rise in 2021 as tight supply, low interest rates and rising demand supported values,” said Dean Lalor, relationship manager. with agribusiness in Launceston.

“This favorable macroeconomic environment has spurred a continued desire for expansion among large family growers and farm operations, ensuring strong competition among buyers across much of the state.

“The North and North West regions consolidated the strong median increases recorded in 2020, while the South region recorded significant growth after several years of falling prices.

“The coming year could potentially see more caution in the market as underlying fundamentals become less stable.”

The bank said the number of hectares sold nationwide during the year was higher than in Portugal.

“Rising agricultural commodity prices coupled with a second consecutive year of favorable seasonal conditions in most regions improved cash flow and strengthened balance sheets, supported by historically low interest rates and confidence in long-term outlook for the agricultural sector, it all combines to see a boost in the purchasing power of Australian farmers,” said the bank’s managing director, business partnerships and marketing, Simon Dundon.

“High demand has made the farmland market incredibly competitive.

“We have seen many farmers seek to acquire neighboring blocks to expand the scale of operations or look to more remote areas to diversify their land holdings, which means that many properties are fiercely sought after by multiple cashed-in buyers and competitors.

“Median prices hit new records in all states except the Northern Territory as the supply of land in the market also increased.”

He said the strength of demand exceeded the surge in supply, driving prices higher.

“Corporations, family farmers, lifestyle builders and tree changers are all fueling competition in different segments of the real estate market, which has seen the national median price register the largest year-on-year increase in the world. other in dollars per hectare over the past 27 years, and the largest percentage increase since 2005,” Dundon said.

“However, signs of buyer caution are beginning to appear.

“The prospect of higher interest rates and margin issues from rising input costs could dampen demand and slow the rate of growth in real estate values.”

He said the sharp rise in values ​​in recent years would make some properties unaffordable for some farmers and unviable as stand-alone operations.

Mr Dundon said this was a barrier for new entrants to the industry.

“As things stand, 2022 is shaping up to be another strong year for Australian agriculture and the longer-term fundamentals remain strong,” he said.

“This should continue to fuel buyer interest, with there still being enough demand in the market to drive prices up again in 2022.”

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This story Tasmania’s farming frenzy as land prices hit record high and dominate the country
first appeared on The Examiner.

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