Australian Farmland Values report released
The value of land underpins our farming businesses and rural communities. That’s why Rural Bank and Rural Finance’s specialist insights division, Ag Answers, has produced the inaugural Australian Farmland Values report.
The report features a comprehensive analysis of Australian farmland property values and key national, state and regional trends. The analysis is based on actual farm sales and draws on more than 220,000 transactions, accounting for 264 million hectares of land with a combined value of $124 billion.
The report shows that, over the long term, farmland values have increased ahead of inflation, which demonstrates real growth in this key asset for farm businesses.
Some of the report’s key findings follow:
- The median value of Australian farmland increased by 5.3 per cent in 2015 following on from a 6.8 per cent rise in farmland values in 2014.
- In all states, the median price has trended higher over the past decade with average annual growth exceeding 3% in most states. As inflation has run at 2.6% over the same period, this indicates real growth in farmland prices.
- Since 1995, the median price across all states has recorded average annual growth above 5%, outpacing inflation and proving the long-term value of Australian farmland and the resilience of land prices despite ever-changing market and climate conditions.