Tas farmland price tops Aussie regions

Tasmanian farm Rushy Lagoon is on the market. Picture: Supplied

Apple Isle farmland has topped the nation in two key areas in an Australia-wide report.

However, it is not all positive news.

The latest Australian Farmland Vales report from Bendigo Bank Agribusiness shows Tasmania had the highest median price per hectare.

At $17,575 in the first half of this year, Tasmania was $7690 more expensive than the national average, and almost $4000 higher than Victoria, which had the next highest price.

Tasmania’s North West recorded the highest value in Australia among the regions at $25,143 per hectare. This was just ahead of Adelaide/Fleurieu, and the South/West Gippsland regions.

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Tassie farm Logan.

Simon Rootes, the bank’s agribusiness relationship manager, said these strong results came with “mixed price trends” for Tasmania.

Mr Rootes said the North West price is 3.3 per cent lower than it was compared to the previous half-year, and 6.9 per cent lower when compared year-on-year.

The Northern region’s price per hectare is 16.7 per cent lower, while the South is 44.6 per cent higher.

There were 14 sales in the south, 13 in the North West and 11 in the North.

Mr Rootes said values in the North West region have found stability and increased in the sub-100ha range, where there is greater market competition.

Looking ahead, he said a wet spring could see property values rise. However, it might also reduce transaction volume as sellers won’t be looking to go to market.

“Smaller Northern region property sizes have shown some growth, though larger properties over 120ha also found a higher median price,” he said.

“There has been some recovery in the South where sales are now making up around one-third of total transaction numbers compared with under 20 per cent at the same time a year ago.

“As with all regions, any irrigated properties are getting a premium price amid challenging seasonal conditions.”

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Rushy Lagoon.

JLL Agribusiness value and risk advisory director John Gunthorpe said farm profits had become the significant factor for those looking to acquire farmland.

“With the slowdown in capital value growth, the focus has returned to operating returns from agriculture,” he said.

“Strong farm financial returns will drive market demand. In the absence of these returns, we expect the market will remain relatively flat with moderate capital growth over the next year or so.”

Bendigo Bank Agribusiness senior agricultural analyst, Sean Hickey.

Bendigo Bank Agribusiness senior agricultural analyst, Sean Hickey, said recent relief from interest rates has lifted borrowing power slightly. However, farming costs — fertiliser, fuel and labour — are higher than two to three years ago.

“Seasonal conditions linger as a larger factor impacting buyer intention in the current environment,” he said.

“Improved rainfall across the country is expected to result in a positive shift in buyer interest over the back half of 2025 and into 2026.”

The most expensive Tasmanian farmland properties listed for sale today are the state’s largest farm, the 21,744ha Rushy Lagoon, and the 2683ha Evandale property, Logan.

Among the top sales this year are Rheban farm near Orford and Denium Dairy, part of Woolnorth.