Australian farmland prices have increased by more than 8 per cent per annum for the past two decades.Reports of increasing house prices have been dominating Australian real estate news, but it is farming land that has been undergoing a more dramatic leap in value.
"It has been a strong run across the decade in most parts of the country, but it really has taken off in the last five years," he said.In 2023, the median price per hectare increased by 6.4 per cent to $9,575, according to Rural Bank.Agribusiness analysts have attributed the price rise to a rare confluence of factors, beginning with the breaking of the east coast drought in early 2020.
Rural Bank's analysis found these factors corresponded with an 18 per cent reduction in the number of farm land sales last year, reaching a 29-year low. Mr Goodfellow said the value of Australian land was "very cheap" compared to the value of rural land in other countries."So people are seeing the opportunities to buy land in Australia with the goal of one day improving the productivity of those farms, producing more food for the rest of the world and ultimately doing quite well for their investors.""The whole world is realising just how scarce a resource farmland is. We don't make any more, do we?" he said.