Strong agricultural sector raises farmland prices across Australia | Blue Mountain Gazette

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The price of farmland across the country is rising as Tasmanian farmers seek to capitalize on a strong agricultural sector. According to a new report from Rabobank, the price of farmland in the southernmost state jumped 28.3% between 2019 and 2020, overtaking other leaders Victoria, Queensland and Western Australia, which saw growth of 15%. , 8%, 15 percent and 14.1 percent, respectively. Rabobank senior analyst Wes Lefroy attributed the boom in Australia’s agricultural sector to good rainfall, high commodity prices and low interest rates. The report also mentions how ‘fear of missing out’ – or FOMO – among farmers motivates land buyers who want to buy bigger and develop further under favorable market conditions. Looking ahead, Lefroy expects land prices to remain high as low interest rates and sustained commodity prices continue to support the purchasing power of farmers. “We believe it is likely that commodity prices will remain favorable over the next 24 months, while we expect interest rates to remain at record levels until at least 2024,” added Mr. Lefroy. All of this, combined with a bottleneck in land available for purchase, should keep the agricultural land market competitive in the short term. “Nationally, our research shows farmers’ buying intentions have been at their highest for at least five years, with 9% of Australian farmers saying they intend to buy land within 12 months.” , said Lefroy. IN OTHER NEWS: Speaking to ACMon on the future of farmland prices in Tasmania in particular, Mr Lefroy noted that the high and reliable rainfall in the northwest of the state would likely continue to support the demand from regional buyers and businesses, especially in “such a small market”. Meanwhile, Tasmanian Real Estate Institute president Mandy Welling – who will step down as head of the institute later this week – called the double-digit rise in land prices “exciting” for the country. entire sector. She also noted that due to the scarcity of farmland available for sale, sites previously used for livestock and livestock were being taken over and turned into orchards and vineyards. Likewise, many established farms are segregating areas and diversifying to take advantage of high commodity prices at all levels. The sharp rise in farmland prices reflected a similar rise in prices in the residential market, with house prices in Launceston surging more than 22% year-on-year in the REIT’s latest quarterly report.

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The price of farmland across the country is rising as Tasmanian farmers seek to capitalize on a strong agricultural sector.

According to a new report from Rabobank, the price of farmland in the southernmost state jumped 28.3% between 2019 and 2020, overtaking other leaders Victoria, Queensland and Western Australia, which saw growth of 15%. , 8%, 15 percent and 14.1 percent, respectively.

Rabobank senior analyst Wes Lefroy attributed the boom in Australia’s agricultural sector to good rainfall, high commodity prices and low interest rates.

The report also mentions how ‘fear of missing out’ – or FOMO – among farmers motivates land buyers who want to buy bigger and develop further under favorable market conditions.

Looking ahead, Lefroy expects land prices to remain high as low interest rates and sustained commodity prices continue to support the purchasing power of farmers.

“We believe it is likely that commodity prices will remain favorable over the next 24 months, while we expect interest rates to remain at record highs until at least 2024,” added Mr. Lefroy.

All of this, combined with a bottleneck in land available for purchase, should keep the agricultural land market competitive in the short term.

“Nationally, our research shows farmers’ buying intentions have been at their highest for at least five years, with 9% of Australian farmers saying they intend to buy land within 12 months.” , said Lefroy.

Talk to ACMOn the future of Tasmanian farmland prices in particular, Mr Lefroy noted that high and reliable rainfall in the northwest of the state would likely continue to support demand from regional and commercial buyers, particularly in ” such a small market ”.

Meanwhile, Tasmanian Real Estate Institute president Mandy Welling – who will step down as head of the institute later this week – called the double-digit rise in land prices “exciting” for the country. entire sector.

She also noted that due to the scarcity of farmland available for sale, sites previously used for livestock and livestock were being taken over and turned into orchards and vineyards. Likewise, many established farms are separating areas and diversifying to take advantage of high commodity prices at all levels.

The sharp rise in farmland prices reflected a similar rise in prices in the residential market, with house prices in Launceston surging more than 22% year-on-year in the REIT’s latest quarterly report.

This Farmer FOMO story soaring farmland prices first appeared on The Examiner.


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