Australian Farmland Values - 2020 | New South Wales - Rural Bank
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Australian Farmland Values 2020 | New South Wales
About Rural Bank Rural Bank is a division of Bendigo and Adelaide Bank Limited and provides exceptional financial services, knowledge and leadership for Australian farmers to grow. About the research The Australian Farmland Values report is based on actual farm sales using data collected by the official government agency in each state and territory, which is then compiled by PriceFinder. The Australian Farmland Values report is a guide to market trends of commercial farming property. To that end, where possible, transactions between family members or where one party has compulsory powers are excluded from the analysis. Further, small farms are also excluded to limit the impact of ‘lifestyle farming’ on the results. As property settlement periods vary, some 2019 sales will not be captured in this report at the time of publication. The median price for the most recent year is preliminary and will be revised at least annually. The values used in this report are based on the total sale price and therefore include the value of capital improvements. The value of water entitlements attached to a land title and therefore sold with the property will be reflected in the sale price of the land. If water entitlements are sold separately from the land, this value will not be captured in the sale price. Median prices in the report are only a guide to market activity. They are not a valuation. Median is used rather than mean as the median is not as readily distorted by unusually high or low prices. However, the median does have limitations. The mix of property sold in a given year can cause the median price to move up or down in a way that is unrelated to a move in value. For example, a higher proportion of lower-value sales can result in a lower median and vice-versa. In areas where there have been very few sales, this effect can be especially pronounced and so in these cases the median should be used with caution and may not be indicative of an actual change in farmland value. In order to track median price per hectare growth over a range of time periods the report uses compound annual growth rate (CAGR). Compound annual growth rate is a geometric mean that accounts for compound growth, providing a more accurate measure of an investments return compared to a simple arithmetic mean. Farmland sales volume is reported as the number of transactions. Farms can be sold as single or multiple lots, which obscures the view of the number of farms sold, particularly in cases where one farm is sold as multiple lots to multiple buyers. Accordingly, the number of ‘transactions’ should not be interpreted as the number of farms sold and should only be used as a guide to market activity. This report is not intended for use as a farm valuation tool. A qualified professional is required to assess the value of a property. For PriceFinder terms and conditions visit: www.pricefinder.com.au/terms-conditions/
Understanding the value of farmland is important to everyone in agribusiness, especially Australia’s farmers. The Australian Farmland Values report tells the story of national and regional farmland performance over the past 25 years. This report is intended to provide general information on a particular subject or subjects and is not an exhaustive treatment of such subject(s). The information herein is believed to be reliable and has been obtained from public sources believed to be reliable. Rural Bank, a Division of Bendigo and Adelaide Bank Limited, ABN 11 068 049 178 AFSL/ Australian Credit Licence 237879, makes no representation as to or accepts any responsibility for the accuracy or completeness of information contained in this report. Any opinions, estimates and projections in this report do not necessarily reflect the opinions of Rural Bank and are subject to change without notice. Rural Bank has no obligation to update, modify or amend this report or to otherwise notify a recipient thereof in the event that any opinion, forecast or estimate set forth therein, changes or subsequently becomes inaccurate. This report is provided for informational purposes only. The information contained in this report does not take into account your personal circumstances and should not be relied upon without consulting your legal, financial, tax or other appropriate professional. © Copyright Bendigo and Adelaide Bank Ltd ABN 11 068 049 178 (1452805 –1456137) (04/20)
Foreword
Agriculture is volatile, or so the mythology goes. You only hear Farmers are also holding on to their land, with year-on-year
about agriculture when it’s booming or facing another challenge transaction volumes falling by 13.2 per cent. What is driving this?
or crisis. Are lower sales volumes driving up price, or are farmers simply
optimistic about the future?
Rural Bank’s Australian Farmland Values 2020 report turns
this myth on its head, particularly when you consider our world There is certainly no shortage of buyers, happy to invest.
is grappling with the COVID-19 pandemic, a challenge with Corporates have continued to strongly enter the market,
the potential to deliver the greatest uncertainty or unknown particularly in New South Wales and Queensland.
economic impact since World War II.
As much of the eastern half of Australia emerges from dry
Is agriculture immune or conditioned? History would tell you it is. conditions and drought, will land continue to be held on to for
longer, and what are the implications for traditional farming
When you remove the noise, agriculture is stable, consistent and
businesses?
an under-recognised source of economic growth. If you know
what you are doing and are prepared to see through short-term These are all important questions, requiring discussion.
vagaries and variations, there are rewards to be harvested.
As always, Rural Bank is looking to contribute evidence and
On average, Australian farmland has delivered compound annual insight to this conversation, advocating for the agricultural
growth of 7.5 per cent over 20 years. industry.
It’s a remarkable result and it highlights that investing in farmland In these unprecedented times, the evidence suggests that if you
over the long-term will deliver, through good times and bad. look to agriculture and farmland, it continues to perform well over
the long-term – whatever the circumstances.
We also know that farmland value is only one measure. It certainly
does not automatically translate to profitability, or growth. Alexandra Gartmann
CEO, Rural Bank
It’s the base asset for Australia’s farming businesses, with
unique characteristics, strengths and weaknesses. But in every
case, every parcel of land requires smart, capable farmers to
turn a profit.
Land with consistent access to water has continued to
perform far better than land without. Climate risk and
reliable rainfall continues to drive investment.
4Executive Summary
2019 year-on-year
Farmland values have been resilient following several years 2019 year-on-year
transaction
of challenging seasonal conditions. We expect growth in the median price growth
volume growth
value of Australian farmland to continue over the long-term
as ongoing improvements in Australian agricultural productivity NSW 17.2% -19.8%
and profitability fuel strong demand for agricultural assets.
While factors such as strong commodity prices, a low interest QLD -0.8% -7.8%
rate environment and tight supply of land support strong
demand for farmland in the short-term, this will be tempered SA 18.4% -8.3%
by disruptions to global economies. We expect farmland
values to continue to grow but at a reduced rate compared TAS 11.1% -5.8%
to the growth seen in the past six years.
VIC 12.1% -12.9%
Across Australia the number of transactions declined
13.2 per cent year-on-year to 7,164. This marks the lowest
transaction volume for the analysed period (1995–2019). WA 28.2% -4.6%
The number of transactions equates to a total of 6.5 million
hectares of land with a combined value of $8.7 billion. NT -53.9% -36.2%
Farmland values hold particular significance when examined
National 13.5% -13.2%
at a localised level. In 2020 Rural Bank has researched
trends in 29 regions across the country. The Australian
Farmland Values 2020 report draws on more than 262,000
transactions, accounting for 303.9 million hectares of land
with a combined value of $159 billion over 25 years.
Australia – historic performance
$6,000 16,000
14,000
$5,000
12,000
$4,000
10,000
$3,000 8,000
6,000
$2,000
4,000
$1,000
2,000
0 0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Median price $/ha (LHS) Number of transactions (RHS)
5$5,066 17.2% 1,354,493 7.5%
Compound annual growth
Median price per hectare 2019 median price growth Hectares of land traded
over 20 years
Map shows median price movement in 2019.
Northern
23.7%
Western
-11.2%
Central
18.3%
Southern
20.3%
South East
19.5%
New
South WalesNew South Wales
New South Wales – historic performance
$6,000 6,000
$5,000 5,000
$4,000 4,000
$3,000 3,000
$2,000 2,000
$1,000 1,000
0 0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Median price $/ha (LHS) Number of transactions (RHS)
New South Wales recorded the sixth consecutive year of growth for
the state as the continued drought saw a 14.5 per cent reduction
in the area of land transacted year-on-year. This reduction in
From the field
available properties was met by comparatively strong demand, “Severe drought conditions across the state led
and the median price per hectare of farmland in New South Wales to a significant reduction in listings, this resulted in
increased by 17.2 per cent in 2019 to $5,066 per hectare.
transaction volume hitting its lowest level of the 25
Demand remained strong particularly for quality properties in years analysed. Most of the decline came from the
each region, underpinned in many parts by strong livestock
Northern and Central regions, particularly at the lower
values, and high demand for pasture. All regions, except Western
value end of the market. Fewer low value transactions
New South Wales, recorded double digit growth to median price
per hectare in 2019. Northern New South Wales recorded the resulted in strong growth in median price per hectare
highest growth in median price per hectare of 23.7 per cent, as across most regions. Reliable, good quality properties
an influx of corporate activity, combined with ongoing drought that did list were met with solid demand and sold
changed the transaction mix, with significantly fewer transactions well at a local level. Grazing properties were in high
at the low end of the market in 2019. Southern New South
demand in southern regions of the state, driven by
Wales recorded growth of 20.3 per cent, as good quality grazing
favourable commodity prices and a lack of listings.”
land sold at premiums, resulting in an increased proportion of
transactions at the top end of the market. In contrast the Western Jonathon Hewitt, Rural Bank, Eastern Australia.
New South Wales region recorded a decline of 11.2 per cent, as
several western agricultural holdings tested the market despite
ongoing dry conditions, the region recorded an overall increase in
area transacted of 7.3 per cent in 2019. approximately 1.35 million hectares, a decrease of 14.5 per cent
compared to 2018.
The volume of transactions fell for a third consecutive year,
decreasing sharply to 2,462, 19.8 per cent below 2018 and the The total value of New South Wales farmland traded in 2019
lowest recorded volume for New South Wales in the analysed was approximately $3.1 billion, a decrease of 9.5 per cent.
dataset. Seasonal conditions will influence transaction volume Total value traded didn’t fall to the same degree as transaction
in 2020, if favourable transaction volume will likely increase, if volume and area traded due to a greater proportion of high value
dry conditions persist supply of properties will remain tight. The transactions relative to other price ranges. This trend was evident
area of farmland traded in 2019 across New South Wales was across most regions of the state in 2019.
7New South Wales – transactions by price range
1,000
2019
800
2018
Number of transactions
600
400
200
0
$0 – 2,000/ha $2,000 – 4,000/ha $4,000 – 6,000/ha $6,000 – 8,000/ha $8,000 –10,000/ha $10,000/ha+
The mix of properties available on the market, combined with pronounced decline in low value transactions was in
another year-on-year increase in values saw fewer low value Northern New South Wales, with a 41.9 per cent decline in the
transactions in 2019. The number of properties transacted in $0–2,000/ha range. Western New South Wales was the only
the $0–2,000/ha range declined 30.9 per cent, this equates to region where transaction volume increased overall, this included
a decrease of 206 transactions at the lower end of the market. an increase towards the lower end of the market resulting in a
In contrast the higher end of the market reported a 4.1 per cent decline in median price per hectare. Southern New South Wales
increase in transaction volume. The spread of transactions was primarily responsible for the increase in transactions at
favoured the mid to high end of the market, this pushed median the top end of the market. There was significant growth in the
price per hectare higher. volume of transactions in the greater than $7,500/ha range,
increasing by 69.1 per cent compared to 2018, this equates to
The trend of fewer low value transactions was evident across
an extra 47 transactions.
four of the five regions of New South Wales in 2019. The most
Performance by land size
Median $/ha No. of transactions
Parcel size
(ha)
2019 % change 10yr CAGR Decile 2019 YoY +/-
30–50 $9,980 14.5% 4.3% 10.0 580 -136
50–150 $6,327 21.3% 5.7% 10.0 768 -217
150–250 $3,956 0.9% 6.1% 10.0 324 -51
250+ $2,688 20.8% 6.8% 10.0 790 -202
Overall $5,066 17.2% 6.1% 10.0 2,462 -606
Growth in the median price per hectare occurred for every parcel There were fewer transactions across all parcel sizes in 2019.
size, with significant growth in the 50–150ha and the greater The 50–150ha range experienced the largest decline. The mix
than 250ha ranges. Over a longer term, larger parcels of land of transactions by parcel size remained relatively unchanged,
continue to provide the highest average annual growth rate. the 30–50ha range made up a slightly higher percentage of
All parcel sizes recorded a decile 10 indicating median price per transactions in 2019, this aided overall median price per hectare
hectare is at a record high regardless of parcel size. growth.
8NSW
Central
Central – historic performance
$5,000 2,000
$4,500 1,800
$4,000 1,600
$3,500 1,400
$3,000 1,200
$2,500 1,000
$4,716 $2,000
$1,500
800
600
$1,000 400
Median price per hectare $500 200
0 0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Median price $/ha (LHS) Number of transactions (RHS)
The median price per hectare of farmland in Central New South Wales increased by 18.3 per
18.3% cent in 2019 to $4,716 per hectare. This resulted in the sixth consecutive year of growth for
the region, highlighting strong demand and the willingness of buyers to look past dry conditions
to secure tightly held land.
2019 median price growth There was solid growth in median price per hectare in Lithgow and Gilgandra. In contrast,
median price per hectare declined in Cabonne and Warren.
From the field
“In most regions throughout the Central and Central West of New South Wales, near
or new record prices continued to be achieved throughout 2019. The high value
at which transactions occurred was the result of long-term investor confidence off
245,446 the back of strong commodity prices, a shortage of listings and low interest rates,
indicating many were prepared to look past the dry conditions.”
Hectares of land traded Richard Gemmell, Elders, Dubbo.
The volume of transactions decreased sharply to 774 transactions, 19.9 per cent below 2018,
driven by severe drought in the region leading to fewer listings. Transaction volume declined
most in the Mid-Coast and Mid-West municipalities.
6.8%
Compound annual growth
over 20 years
10Central – transactions by price range
300
250 2019
2018
Number of transactions
200
150
100
50
0
$0 – 2,000/ha $2,000 – 4,000/ha $4,000 – 6,000/ha $6,000 – 8,000/ha $8,000 –10,000/ha $10,000/ha+
The volume of transactions decreased across all ranges; however, the decline was highest in the $0–2,000/ha range with a decrease
of 31.8 per cent. That equates to a decrease of 68 transactions at the lower end of the market. The decline in low value transactions was
most evident in the Mid-Coast, Mid-Western and the Upper Hunter municipalities. The decrease was not as pronounced at the higher
end of the market therefore the median price per hectare for the region increased.
The municipalities of Blayney, Coonamble, Dungog, Lithgow, Mid-Coast, Mid-Western, Narromine, Parkes, Upper Hunter and Warren all
experienced a notable decline in transaction volume in 2019.
Performance by land size
Median $/ha No. of transactions
Parcel size
(ha)
2019 % change 10yr CAGR Decile 2019 YoY +/-
30–50 $12,481 23.8% 6.2% 10.0 191 -45
50–200 $5,389 2.0% 4.1% 10.0 276 -70
200–350 $3,403 35.1% 7.4% 10.0 104 -18
350+ $2,257 14.9% 8.3% 10.0 203 -59
Overall $4,716 18.3% 5.1% 10.0 774 -192
There were fewer transactions across all parcel sizes in 2019. Parcels greater than 350ha experienced the largest decline. Median price
per hectare increased across all parcel sizes, reflecting strong underlying demand. The highest increase was in the 200–350ha range.
Over the long-term larger parcel sizes greater than 350ha returned the highest average annual growth rate.
11NSW
Northern
Northern – historic performance
$7,000 2,500
$6,000
2,000
$5,000
$4,000 1,500
$5,965 $3,000
$2,000
1,000
500
$1,000
Median price per hectare
0 0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Median price $/ha (LHS) Number of transactions (RHS)
The median price per hectare of farmland in Northern New South Wales increased by 23.7
23.7% per cent in 2019 to $5,965 per hectare. This resulted in two consecutive years of double-digit
growth, reflecting the depth of buyers in the region.
2019 median price growth
From the field
“Dominated by weather including droughts and fires, transactions of farmland
showed that the market displayed resilience in terms of the depth of buyers and
prices paid. Corporate activity may have dominated, however when the season
breaks, we expect more traditional local family buyers to re-enter the market, further
strengthening values together with an influx of rural properties capitalising on
increased confidence.”
254,085 Ian McArthur, Elders, Gunnedah.
Hectares of land traded
The median price per hectare increased notably in the municipalities of Nambucca and
Armidale. In contrast, Ballina and Tamworth decreased.
The volume of transactions in the region decreased 28.7 per cent to 778 in 2019. This was
the result of severe drought leading to a decrease in listings.
8.4%
Compound annual growth
over 20 years
12Northern – transactions by price range
300
2019
250 2018
Number of transactions
200
150
100
50
0
$0 – 2,000/ha $2,000 – 4,000/ha $4,000 – 6,000/ha $6,000 – 8,000/ha $8,000 –10,000/ha $10,000/ha+
The volume of transactions decreased across all ranges; however, the decline was highest in the $0–2,000/ha range with a decrease
of 41.9 per cent. That equates to 95 fewer transactions at the lower end of the market. Most of these transactions were in the
municipalities of Armidale, Clarence and Tenterfield. The decrease was not as pronounced at the higher end of the market therefore the
median price per hectare for the region increased.
The municipalities of Armidale, Ballina, Inverell, Nambucca and Walcha all experienced a notable decline in transaction volume in 2019.
In contrast transaction volume increased significantly in the Moree Plains municipality.
Performance by land size
Median $/ha No. of transactions
Parcel size
(ha)
2019 % change 10yr CAGR Decile 2019 YoY +/-
30–50 $9,544 11.5% 3.7% 10.0 235 -53
50–150 $6,336 13.5% 4.0% 10.0 264 -119
150–250 $3,975 14.1% 6.7% 10.0 81 -58
250+ $3,322 38.4% 8.2% 10.0 198 -83
Overall $5,965 23.7% 7.2% 10.0 778 -313
There were fewer transactions across all parcel sizes in 2019. The 150–250ha range experienced the largest decline. Median price
per hectare increased across all parcel sizes, reflecting strong underlying demand. The highest increase was in the greater than 250ha
range, which also returned the highest ten-year average growth rate.
13NSW
South East
South East – historic performance
$8,000 1,200
$7,000
1,000
$6,000
800
$5,000
$4,000 600
$6,972 $3,000
$2,000
400
200
Median price per hectare $1,000
0 0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Median price $/ha (LHS) Number of transactions (RHS)
The median price per hectare of farmland in South East New South Wales increased by
19.5% 19.5 per cent in 2019 to $6,972 per hectare. The region has achieved six consecutive years
of growth, reflecting high levels of demand and confidence in the region’s high rainfall grazing
properties.
2019 median price growth At municipality level, the median price per hectare increased strongly in the Bega Valley and
Queanbeyan-Palerang. In contrast, median price per hectare declined in Eurobodalla.
From the field
“Farmland was in tight supply in 2019, driven by a limited number of listings.
Favourable livestock prices led local farmers to hold onto land and look to expand
where possible. As a result, good quality grazing land sold at a premium. It
69,305 continues to be a sellers’ market as evidenced by a higher volume of private sales
between neighbouring properties, a trend that is expected to continue in 2020.”
Hectares of land traded John Scarlett, Rural Bank, Goulburn.
The volume of transactions in the region decreased 14.1 per cent to 360 in 2019. Favourable
livestock prices led existing farmers to hold onto land resulting in fewer transactions, this
contrasted with other regions of the state where drought limited listings.
7.4%
Compound annual growth
over 20 years
14South East – transactions by price range
140
120 2019
2018
100
Number of transactions
80
60
40
20
0
$0 – 2,000/ha $2,000 – 4,000/ha $4,000 – 6,000/ha $6,000 – 8,000/ha $8,000 –10,000/ha $10,000/ha+
The volume of transactions increased at the top end of the market in 2019. The greater than $10,000/ha range increased 6.3 per cent.
That equates to an increase of seven transactions at the upper end of the market. Most of these occurred in the municipality of Snowy
Monaro. This increase was offset by a fall in the low to medium value ranges, particularly in the $4,000–6,000/ha range which fell
45.6 per cent. This equates to 31 fewer transactions, the majority in the municipalities of Queanbeyan-Palerang and the Bega Valley.
This resulted in a greater percentage of high value transactions driving the median price per hectare higher.
The municipalities of Bega Valley, Queanbeyan-Palerang, Shoalhaven and Yass Valley all experienced a notable decline in transaction
volume in 2019. In contrast transaction volume increased in the Upper Lachlan shire.
Performance by land size
Median $/ha No. of transactions
Parcel size
(ha)
2019 % change 10yr CAGR Decile 2019 YoY +/-
30–50 $11,236 21.2% 5.3% 10.0 97 -46
50–150 $7,404 33.0% 6.9% 10.0 153 -16
150–250 $3,327 -29.8% 5.6% 9.6 40 -1
250+ $2,267 18.6% 1.5% 10.0 70 4
Overall $6,972 19.5% 5.5% 10.0 360 -59
There were fewer transactions across most ranges except for the greater than 250ha range. The 30–50ha range recorded the largest
decline. Median price per hectare increased across most parcel sizes, reflecting strong underlying demand. The highest increase was in
the 50–150ha range which also has the highest ten-year average annual growth rate.
15NSW
Southern
Southern – historic performance
$5,000 1,200
$4,500
1,000
$4,000
$3,500
800
$3,000
$2,500 600
$4,458 $2,000
$1,500
400
$1,000
200
Median price per hectare $500
0 0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Median price $/ha (LHS) Number of transactions (RHS)
The median price per hectare of farmland in Southern New South Wales increased by 20.3 per
20.3% cent in 2019 to $4,458 per hectare. This is the third consecutive year of double-digit growth
for the region, reflecting strong demand for tightly held land particularly in high rainfall areas.
At municipality level, the median price per hectare increased solidly in Cootamundra-Gundagai
2019 median price growth and Junee. In contrast, median price per hectare eased in Hay.
From the field
“Demand for properties in Southern New South Wales remained strong in 2019.
Record prices were achieved in most areas, driven by low supply and increased
competition amongst neighbouring buyers. Despite tough seasonal conditions in
2019, demand remained buoyant for cropping and grazing properties especially
275,818 those in high rainfall zones.”
Joann Heeney, Rural Bank, Wagga Wagga.
Hectares of land traded
The volume of transactions for the region decreased 8.6 per cent to 511 in 2019. Transaction
volume didn’t decline as much as other regions with buyers willing to look past short-term
seasonal conditions to secure good quality properties.
7.7%
Compound annual growth
over 20 years
16Southern – transactions by price range
160
2019
140
2018
120
Number of transactions
100
80
60
40
20
0
$0 – 1,500/ha $1,500 – 3,000/ha $3,000 – 4,500/ha $4,500 – 6,000/ha $6,000 –7,500/ha $7,500/ha+
The volume of transactions increased at the top end of the market in 2019. The greater than $7,500/ha range increased 69.1 per cent.
That equates to an increase of 47 transactions at the upper end of the market. Most of these transactions occurred in the municipalities
of Cootamundra-Gundagai, Hilltops and Junee. This resulted in transaction mix favouring the higher value ranges which in combination
with a fall in the low to medium value ranges, increased the median price per hectare for the region.
The municipalities of Coolamon, Leeton, Murrumbidgee and Wagga Wagga all experienced a notable decline in transaction volume in
2019. In contrast transaction volume increased in Federation, Hilltops and Junee.
Performance by land size
Median $/ha No. of transactions
Parcel size
(ha)
2019 % change 10yr CAGR Decile 2019 YoY +/-
30–100 $6,169 31.0% 6.5% 10.0 125 16
100–250 $5,006 14.7% 7.3% 10.0 156 -20
250–350 $4,449 28.3% 6.9% 10.0 64 -20
350+ $2,720 5.1% 5.6% 10.0 166 -24
Overall $4,458 20.3% 6.9% 10.0 511 -48
There were fewer transactions across most ranges except for the 30–100ha range. The 250–350ha range experienced the largest
decline. Median price per hectare increased across all parcel sizes, reflecting strong underlying demand. The greatest increase was in
the high valued 30–100ha range, this combined with an increase in transactions in this range aided median price per hectare growth
in the region.
17NSW
Western
Western – historic performance
$160 100
$140 90
80
$120
70
$100 60
$128
$80 50
$60 40
30
$40
20
Median price per hectare $20 10
0 0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Median price $/ha (LHS) Number of transactions (RHS)
The median price per hectare of farmland in Western New South Wales decreased by 11.2 per
-11.2% cent in 2019 to $128 per hectare, this follows a 50.1 per cent increase in 2018. The decline
in median price per hectare is largely due to a change in transaction mix as opposed to a
decline in demand. There was a higher proportion of large land holdings sold in 2019 which
characteristically attract a lower price per hectare.
2019 median price growth
From the field
“Several small, medium and large scale western agricultural holdings tested the
market amidst extremely dry climatic conditions. Those which changed hands showed
that the market continued to strengthen. Scattered rainfall providing areas of grass
and water was one of the major contributing factors to the level of interest and
509,838 subsequent completed transactions. Those with strong balance sheets considered
purchasing land for grass was financially a better alternative than the continuing
prospect of drought feeding.”
Hectares of land traded
Richard Gemmell, Elders, Dubbo.
At municipality level, the median price per hectare decreased in the Unincorporated Far West
and Cobar. In contrast, median price per hectare increased in Bourke.
The volume of transactions in the region increased 18.2 per cent to 39 in 2019. The increase
in sales activity reflected demand from graziers taking the opportunity to secure tightly held
7.4% land, with a willingness to look past dry seasonal conditions.
Compound annual growth
over 20 years
18Western – transactions by price range
12
2019
10 2018
Number of transactions
8
6
4
2
0
$0 – 50/ha $50 – 100/ha $100 – 150/ha $150 – 200/ha $200 –250/ha $250/ha+
The volume of transactions increased at the lower end of the market in 2019. The $0–50ha range increased 150 per cent. That equates
to an increase of three transactions. Most of the transaction activity at the low value end of the market occurred in Cobar and the
Unincorporated Far West. This increase was offset by a fall in the high value ranges, resulting in a decline in the median price per hectare
for the region.
The municipalities of Bourke, Cobar and Wentworth recorded an increase in transaction volume in 2019. In contrast transaction volume
declined in Brewarrina.
Performance by land size
Median $/ha No. of transactions
Parcel size
(ha)
2019 % change 10yr CAGR Decile 2019 YoY +/-
30–5,000 $210 -8.6% 7.8% 9.6 16 7
5,000–10,000 $109 -24.0% 2.4% 7.4 8 -6
10,000–15,000 $113 17.6% 7.2% 8.7 2 -1
15,000+ $83 -32.7% 3.3% 9.1 13 6
Overall $128 -11.2% 5.1% 9.1 39 6
There was an increase in transactions at both ends of the market in 2019. The greater than 15,000ha range recorded the largest
increase in transaction volume in percentage terms. This translated to a greater proportion of large parcels in the transaction mix.
Median price per hectare decreased across most parcel sizes. The highest decrease was in the greater than 15,000ha range. In contrast
the median price per hectare increased in the 10,000–15,000ha range. The 30–5,000ha range continues to return the highest average
annual growth rate.
19NSW
Farmland sales by municipality
Median $/ha Number of transactions
Municipality
2019 5yr CAGR 10yr CAGR 20yr CAGR 2019 YoY +/-
Central
Bathurst $6,646 12.3% 6.7% 7.4% 36 -2
Blayney $9,683 15.5% 7.7% 8.2% 12 -8
Bogan $988 14.6% 10.2% 10.1% 9 -1
Cabonne $5,062 6.7% 6.6% 4.7% 44 -1
Cessnock $11,898 4.0% 1.5% 5.2% 23 -3
Coonamble $2,543 8.9% 10.7% 9.2% 17 -14
Cowra $9,375 18.2% 7.7% 9.5% 33 5
Dubbo $4,157 11.0% 5.9% 8.4% 45 11
Dungog $6,524 3.5% 0.2% 4.8% 24 -8
Forbes $3,521 9.6% 4.0% 8.1% 14 -4
Gilgandra $2,677 14.5% 5.4% 7.7% 26 -8
Lachlan $1,557 13.8% 6.7% 8.6% 35 -4
Lithgow $12,915 20.0% 11.5% 9.2% 16 -19
Maitland $21,355 7.9% 4.3% 7.6% 5 5
Mid-Coast $9,652 8.4% 4.4% 7.3% 129 -38
Mid-Western $3,875 8.3% 5.6% 6.3% 64 -38
Muswellbrook $9,354 -2.6% 0.9% 5.6% 20 -2
Narromine $2,595 8.9% 4.8% 7.2% 19 -17
Oberon $7,410 9.0% 6.8% 6.5% 29 -1
Orange – 7.5% 8.8% 6.1% 1 1
Parkes $2,446 14.4% 7.1% 7.1% 24 -10
Singleton $11,557 7.8% 5.5% 6.1% 45 2
Upper Hunter $3,952 6.2% 1.4% 7.4% 43 -20
Warren $1,893 9.9% 6.9% 7.5% 9 -8
Warrumbungle $2,124 7.1% 2.5% 6.5% 38 -12
Weddin $3,028 3.8% 4.9% 6.9% 14 2
Central $4,716 9.9% 5.1% 6.8% 774 -192
Northern
Armidale $6,595 12.0% 10.9% 11.1% 35 -28
Ballina – 0.1% 2.0% 8.2% 3 -3
Bellingen $11,942 9.8% 5.2% 7.0% 19 -2
Byron $16,449 4.3% 15.8% 9.5% 5 1
Clarence Valley $5,577 2.6% 2.5% 8.3% 105 -42
Coffs Harbour $14,250 7.4% 4.2% 7.7% 9 -4
Glen Innes Severn $3,845 8.9% 6.0% 5.7% 24 -17
Gunnedah $5,431 7.4% 5.9% 9.2% 29 6
Gwydir $3,187 13.3% 6.5% 9.4% 28 -7
Inverell $2,872 14.2% 1.9% 8.6% 29 -31
Kempsey $7,119 12.5% 2.2% 6.9% 44 -6
Kyogle $7,878 9.5% 3.7% 7.9% 67 -18
Lismore $12,299 1.8% 3.5% 6.7% 38 -18
Liverpool Plains $6,686 12.2% 9.7% 8.8% 28 3
Moree Plains $4,212 7.6% 6.2% 9.2% 31 10
Nambucca $11,165 16.3% 5.4% 10.4% 17 -21
Narrabri $4,376 15.0% 10.2% 9.1% 35 -12
Port Macquarie-Hastings $7,487 2.7% 1.5% 6.4% 27 -34
Richmond Valley $8,440 14.9% 3.2% 7.7% 55 -18
Tamworth $3,240 3.7% 4.8% 5.6% 49 -12
20Median $/ha Number of transactions
Municipality
2019 5yr CAGR 10yr CAGR 20yr CAGR 2019 YoY +/-
Tenterfield $2,775 4.9% 4.8% 8.0% 37 -33
Tweed $14,087 3.7% 1.5% 6.8% 32 3
Uralla $4,206 19.0% 1.4% 8.8% 10 -4
Walcha $5,353 6.0% 4.7% 8.0% 13 -18
Walgett $2,109 16.6% 11.0% 10.6% 9 -8
Northern $5,965 9.6% 7.2% 8.4% 778 -313
South East
Bega Valley $9,052 10.9% 4.4% 7.6% 36 -14
Eurobodalla $11,776 3.6% -1.8% 5.4% 9 0
Goulburn Mulwaree $10,502 11.3% 6.2% 7.6% 61 -3
Queanbeyan-Palerang $8,292 9.7% 6.2% 7.7% 51 -24
Shoalhaven $11,863 -1.8% -0.8% 4.0% 10 -9
Snowy Monaro $2,735 10.1% 5.3% 6.7% 86 -7
Upper Lachlan $5,414 11.6% 4.8% 7.7% 81 2
Yass Valley $11,296 12.9% 11.2% 9.8% 26 -4
South East $6,972 10.2% 5.5% 7.4% 360 -59
Southern
Albury – – 7.8% 6.0% 1 0
Berrigan $5,037 15.1% 10.1% 5.7% 22 1
Bland $2,476 14.9% 9.4% 8.0% 49 2
Carrathool $1,540 10.4% 7.6% 7.6% 22 -1
Coolamon $5,479 14.7% 12.5% 8.2% 7 -20
Cootamundra-Gundagai $8,017 14.9% 10.1% 8.8% 23 -2
Edward River $3,749 17.5% 7.3% 4.6% 21 -6
Federation $5,560 16.5% 11.7% 9.5% 28 5
Greater Hume $8,612 14.2% 8.1% 9.0% 57 8
Griffith $3,157 4.8% 9.7% 6.5% 4 -1
Hay $427 6.3% 7.5% 2.1% 9 1
Hilltops $6,389 15.2% 9.2% 9.0% 53 8
Junee $7,684 17.1% 9.0% 8.1% 22 15
Leeton $4,533 12.8% 7.1% 7.2% 10 -6
Lockhart $6,178 15.0% 10.9% 8.8% 19 -5
Murray River $2,517 11.0% 3.5% 5.4% 41 1
Murrumbidgee $3,906 19.1% 9.5% 7.3% 16 -26
Narrandera $3,212 16.7% 8.4% 7.9% 23 -2
Snowy Valleys $5,321 8.9% 3.3% 7.2% 31 0
Temora $4,455 13.3% 6.0% 9.7% 17 -3
Wagga Wagga $7,705 19.5% 7.6% 8.2% 36 -17
Southern $4,458 13.1% 6.9% 7.7% 511 -48
Western
Balranald* – – 2.8% 5.3% 0 -1
Bourke $115 14.6% 6.7% 8.4% 6 3
Brewarrina – – -8.1% -4.1% 1 -11
Central Darling $175 10.2% 8.3% 13.8% 6 3
Cobar $93 5.4% 4.6% 6.6% 17 9
Unincorporated Far West $76 – 6.5% – 6 1
Wentworth – – 21.7% 11.4% 3 2
Western $128 8.6% 5.1% 7.4% 39 6
New South Wales $5,066 11.1% 6.1% 7.5% 2,462 -606
CAGR: Compound Annual Growth Rate
Price information with a small volume of transactions should be used with caution. The median price for municipalities with less than four transactions in 2019 is not reported.
*Municipalities with no transactions in 2019 have compound annual growth rate for five, ten and twenty years presented using the 2018 median.For banking enquiries Rural Bank products are available through Elders and Bendigo Bank branches. To find out more about Rural Bank’s range Subscribe of specialist farm finance products and For report enquiries Visit ruralbank.com.au/subscribe services contact your local Rural Bank For more detailed and in depth to receive future research and analysis Agribusiness Relationship Manager, call insights or customised reports email: to support you in making informed 1300 660 115 or visit ruralbank.com.au insights@ruralbank.com.au business decisions on your farm.
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