A 20 per cent surge last year in the median price of a hectare of farmland – the highest in 16 years – is unlikely to be repeated this year as rising interest rates eat into borrowing capacities and inflation drives up the cost of farm inputs, Rural Bank says in its latestDespite these tailwinds, it expected the rural property market to remain “pretty buoyant” in 2022, with higher values supported by strong commodity prices and good seasonal conditions across most of the country, giving farmers...
The latest surge in farmland prices lifted the 20-year compound annual growth rate to 8.4 per cent, outperforming both capital city residential property prices and the ASX 200 index . NSW, South Australia and Tasmania recorded growth of about 8 per cent, while in the Northern Territory, where median prices per hectare are more volatile because of the changing mix of transactions between large cattle stations and smaller properties, they fell by 18 per cent .Cattle station regions, predominantly in the east of the Northern Territory, recorded 57.9 per cent growth in the median price per hectare, a reflection of theIn Queensland, a 31.