QLD FARMLAND PRICES CONTINUE TO INCREASE
Years of rural property growth continues
THE inaugural Australian Farmland Values Report has released their figures which show that Queensland farmland has increased in value by 3.3 per cent over 2015.
This growth is in step with an average increase in property value of 5.7 per cent per year since 1995.
The report was conducted by Rural Bank and Rural Finance which said it emphasised the underlying strength of property values throughout the country.
Speaking at the launch of the new report, Rural Bank and Rural Finance managing director and CEO Alexandra Gartmann said the report’s findings confirmed how the value of farmland was actually tracking.
“The new Australian Farmland Values report provides insights into a key asset of the farm business and how well that asset is holding its value in the context of the market as a whole,” Ms Gartmann said.
“There is little doubt the agriculture sector has good underlying strength, this report shows that over the long term farmland values have increased ahead of inflation.”
The report was based on real farm sales since 1995 and was conducted by the specialist market insights team for Rural Bank and Rural Finance.
The report drew on more than 220,000 transactions which accounted for 264 million hectares of land with a combined value of $124 billion.
“We know that a majority of farmers are in it for the long haul and this provides some assurances,” Ms Gartmann said.
North Burnett real estate agent Phil Dowling said in general prices had increased and faith in agriculture industries had been a contributing factor.
“Grazing country has kicked up since values have increased for the beef market and there is a little bit more stability there now,” Mr Dowling said.
“I think the thing that probably brings the price up in our area is tree and small crops because tree crops get you a better return on some other crops.”
Mr Dowling also said the current state of the beef industry had also led to greater confidence and stability which had a flow on affect for property value.
“It may not have increased but it has made things move, I think faith in the industry has lead to that,” Mr Dowling said.
FAITH IN AGRICULTURE: Childers First National's Phil Dowling says it is strength in the cattle and agricultural markets that has helped sustain prices.