Australian Farmland Values - 2020 | South Australia - Rural Bank
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Australian Farmland Values 2020 | South Australia
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 –1456139) (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.
4
Executive 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
$4,943 18.4% 218,610 7.6%
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.
Yorke
Eyre & North
Peninsula 21.5%
17.4%
Adelaide
Region
& Fleurieu
-12.0%
South East
23.4%
South
Australia
South Australia
South Australia – historic performance
$5,000 1,200
$4,500
1,000
$4,000
$3,500
800
$3,000
$2,500 600
$2,000
400
$1,500
$1,000
200
$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)
South Australian farmland values continued to race higher as a
fourth consecutive year of growth in the median price per hectare
was recorded in 2019. Demand strengthened further in 2019 as
From the field
many farmers sought to expand existing enterprises, including “A significant driver of higher land values in South
farmers from interstate looking to diversify landholdings. Stronger Australia in 2019 was stronger demand from farmers
demand and a second consecutive year of lower transactions led
seeking to expand and diversify operations into new
to an 18.4 per cent increase in median price per hectare, which
contributed to a 67.7 per cent increase over the last four years. geographies. Increased interstate interest has been
The period of strong growth since 2015 followed growth of only an element of this stronger demand. This trend was
18.8 per cent in the prior ten years. particularly evident in the South East region where
The state median was again driven by strong growth in the South graziers sought land for greater certainty for feed
East region where the median increased by 23.4 per cent. The requirements. Strong commodity prices and a low
Yorke and North region recovered from a decline in 2018 to interest rate environment have been supportive of
record a strong 21.5 per cent increase in median in 2019. The stronger intentions to expand enterprises.”
median price on the Eyre Peninsula also increased, up by 17.4 per
cent, adding to strong growth in 2018. Adelaide and Fleurieu was Neil Verringer, Rural Bank, Adelaide.
the only region to record a decline in value, however there was
strong growth recorded at a more local level in parts of this region.
The number of transactions declined by 8.3 per cent in 2019 to An estimated 218,610 hectares of farmland was traded in 2019,
693. Despite declining for a second consecutive year, the number 20.5 per cent less than 2018. The large decline in area traded
of transactions remains 1.9 per cent above the average of the last was the result of fewer transactions and a median parcel size of
10 years. The strength of farmland as an investment class has 134 hectares, 18.3 per cent lower year-on-year. The combined
seen more producers lease out land rather than sell to continue effect of a smaller area of land traded but an increase in values
capturing capital growth. This trend could continue to be a factor resulted in the total value of South Australian farmland traded in
in declining transaction volumes. 2019 falling by 2.1 per cent to $756.8 million.
7
South Australia – transactions by price range
250
2019
200 2018
Number of transactions
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+
For the second year in a row, the decline in the number of in this segment. The Eyre Peninsula and Yorke and North region
transactions in South Australia was largely concentrated to the also recorded declines in transaction volume in this segment.
lower end of the price range with a 31.8 per cent decline in the There was an increase in transactions in this segment in the
number of transactions priced below $2,000/ha. This was partially Adelaide and Fleurieu region, driven by increased volumes on
offset by a 16.7 per cent rise in the number of transactions priced Kangaroo Island.
greater than $10,000/ha. These trends combined to result in a
The increase in transactions priced greater than $10,000/ha
lower proportion of lower priced transactions which shifted the
were concentrated in the Yorke and North region with some
median higher.
additional transactions in this segment also recorded in the
The South East drove much of the decline in transactions priced South East.
below $2,000/ha as it recorded 49.6 per cent fewer transactions
Performance by land size
Median $/ha No. of transactions
Parcel size
(ha)
2019 % change 10yr CAGR Decile 2019 YoY +/-
30–100 $9,453 11.7% 6.1% 10.0 280 13
100–200 $4,302 -0.4% 8.1% 9.1 165 6
200–300 $4,221 9.6% 7.3% 10.0 59 -25
300+ $2,364 41.9% 10.5% 10.0 189 -57
Overall $4,943 18.4% 6.5% 10.0 693 -63
Growth in the median price per hectare was recorded for all The decline in the number of transactions occurred in the larger
parcel size ranges in 2019 except for the 100–200ha segment parcel size segments. This supports the trend of fewer lower priced
which recorded a small decline for the second consecutive year. transactions which was a key driver of the increased median
The median price of parcels greater than 300ha has shown the in South Australia in 2019. All regions except for the Adelaide
strongest growth in recent years driven by growth in this segment and Fleurieu region recorded significant declines in transaction
in the South East. Smaller parcel sizes have also recorded strong volumes of parcels larger than 200ha. The increase in transactions
growth in median price with a third consecutive year of growth of parcels between 30–100ha was concentrated in the South
for the 30–100ha segment. The South East and the Yorke and East, while the increase in the 100–200ha segment was shared
North regions led the growth in the median price of this segment between the Adelaide and Fleurieu region and Yorke and North
in 2019. region which offset a decline in this segment in the South East.
8
SA
Adelaide and Fleurieu
Adelaide and Fleurieu – historic performance
$14,000 250
$12,000
200
$10,000
$8,000 150
$11,560 $6,000
$4,000
100
50
$2,000
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 the Adelaide and Fleurieu region decreased by
-12.0% 12.0 per cent in 2019. This followed growth of 22.7 per cent in 2018. While the region median
declined in 2019, the median price per hectare increased for the Adelaide Hills and Barossa
as higher grape prices have driven improved demand for vineyards. The Fleurieu Peninsula
sub-region also recorded an increased median in 2019 producers sought to expand enterprises
2019 median price growth
following strong livestock prices.
From the field
“Strong growth in land values continued in most areas of the Adelaide and Fleurieu
region in 2019. Generally, values were driven higher as limited supply was met with
high demand. Many farmers in the region looked to expand enterprises to maximise
14,511 existing investment in plant and equipment and optimism in the region was driven by
strong commodity prices for sheep meat and wool. Higher grape prices are likely to
have increased demand for vineyards and properties with an adequate water licence
Hectares of land traded
will have commanded higher prices.”
Tom Kennedy, Rural Bank, Adelaide.
The decline in the regional median can largely be attributed to an increased number of
transactions on the Fleurieu Peninsula and Kangaroo Island and fewer transactions in the higher
valued Adelaide Hills and Barossa. This led to a shift towards a greater proportion of transactions
6.2% in the relatively lower valued sub-regions, which brought the median down. Overall, the number of
transactions increased by 10.7 per cent in 2019 to 145 after declining by 16.6 per cent in 2018.
Compound annual growth
over 20 years
10Adelaide and Fleurieu – transactions by price range
50
2019
40
2018
Number of transactions
30
20
10
0
$0 – 5,000/ha $5,000 – 10,000/ha $10,000 – 15,000/ha $15,000 – 20,000/ha $20,000 – 25,000/ha $25,000/ha+
The region recorded a greater proportion of lower priced transactions in 2019 which shifted the overall profile of transactions towards the
lower value end of the market, which in turn pushed the median lower. Transactions priced below $5,000/ha increased from 18 per cent of
the region’s transactions in 2018 to 27 per cent in 2019. The increase in transactions in this price range reflected increased transactions
on Kangaroo Island which accounted for 79 per cent of these transactions.
The number of transactions priced between $10,000–$25,000/ha declined by 16.4 per cent. This largely reflected fewer transactions in
the Adelaide Hills and Barossa sub-regions.
The impact of a greater proportion of lower priced transactions was partially offset by a 50.0 per cent increase in the number of
transactions priced greater than $25,000/ha. The Fleurieu Peninsula sub-region accounted for most of the additional transactions in this
price range in 2019.
Performance by land size
Median $/ha No. of transactions
Parcel size
(ha)
2019 % change 10yr CAGR Decile 2019 YoY +/-
30–50 $19,218 10.0% 2.7% 10.0 70 2
50–100 $10,600 -2.2% 2.0% 8.7 31 11
100–150 $3,148 -67.9% -2.8% 5.2 19 -3
150+ $3,032 6.8% 5.8% 9.6 25 4
Overall $11,560 -12.0% 2.8% 8.3 145 14
The 30–50ha parcel size range was the only segment in the Adelaide and Fleurieu region to record a decline in transaction volume
in 2019, driven by fewer transactions in the Adelaide Hills and Barossa municipalities. The median price per hectare of this segment
increased for the third consecutive year.
The mid-range parcel size segments both recorded increases in transaction volume but declines in median price per hectare. Most of the
increased transaction volume in these segments came from Kangaroo Island. A greater proportion of transactions in this relatively lower
priced area contributed to pushing the median lower.
The largest parcel size segment recorded an increase in both transaction volume and median price per hectare. While Kangaroo Island
was the location for some increased transaction activity in this segment, additional transactions in the relatively higher price Yankalilla
municipality is the likely cause of the rise in median.
11SA
Eyre Peninsula
Eyre Peninsula – historic performance
$1,800 140
$1,600
120
$1,400
100
$1,200
$1,000 80
$1,647 $800
$600
$400
60
40
20
Median price per hectare $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 on the Eyre Peninsula increased by 17.4 per cent in
17.4% 2019, adding to a 91.6 per cent increase in 2018 as producers seek to take advantage of low
interest rates to expand holdings, particularly in more productive areas.
The median increased in all sub-regions of the Eyre Peninsula, with the Upper and Lower Eyre
2019 median price growth both recording a third consecutive year of growth and the West Coast almost recovering all the
value lost in 2018.
From the field
“Reliable productive land in the Lower Eyre Peninsula district has been highly
sought after. Strong demand and the low interest rate environment combined to
drive prices higher. At the same time, the number of land sales in the Lower Eyre
52,374 Peninsula and Upper Eyre Peninsula were lower than previous seasons.”
Chris Miller, Rural Bank, Cummins.
Hectares of land traded
The number of transactions was 17.9 per cent lower in 2019, the third consecutive year of
decline and an 11–year low. The decline in transaction volume was largely concentrated in
the Lower Eyre Peninsula and Tumby Bay municipalities while most other municipalities had
relatively stable transaction volumes year-on-year.
9.1%
Compound annual growth
over 20 years
12Eyre Peninsula – transactions by price range
30
25 2019
2018
Number of transactions
20
15
10
5
0
$0 – 1,000/ha $1,000 – 2,000/ha $2,000 – 3,000/ha $3,000 – 4,000/ha $4,000 – 5,000/ha $5,000/ha+
The number of transactions declined for all price ranges except for $2,000–$3,000/ha. The increase in this price range was largely due
to higher priced transactions in the Upper Eyre Peninsula. This sub-region was also the main driver of the decline in transactions less than
$1,000/ha as values shifted higher. The decline in transactions priced between $1,000–$2,000/ha was concentrated in the Lower Eyre
Peninsula. All transactions priced greater than $3,000/ha were located in the Lower Eyre Peninsula and the overall decline in transactions
in this sub-region is evident in the higher price ranges. The proportionately larger decline in lower priced transaction on the Eyre Peninsula
led to a minor shift in the profile of transactions towards the higher end of the market, subsequently pushing the median higher.
Performance by land size
Median $/ha No. of transactions
Parcel size
(ha)
2019 % change 10yr CAGR Decile 2019 YoY +/-
30–300 $3,458 67.7% 2.6% 9.1 20 4
300–600 $2,212 24.5% 5.8% 10.0 15 -3
600–900 $1,574 20.8% 11.9% 10.0 10 0
900+ $501 -14.1% 4.6% 9.1 19 -15
Overall $1,647 17.4% 7.8% 10.0 64 -14
Transactions between 30–300ha recorded the largest increase in median price per hectare on the Eyre Peninsula in 2019 and
recovered from a 31.5 per cent decline in 2018. There was a small increase in the number of transactions in this parcel size range which
occurred in the West Coast sub-region.
There were fewer transactions in the mid-sized ranges but strong growth in the median price per hectare. The decline in transactions
was concentrated in the Lower Eyre Peninsula and remained stable in the Upper Eyre and West Coast sub-regions.
Transactions greater than 900ha were the only parcel size range to record a decline in median on the Eyre Peninsula in 2019. While
the number of transactions greater than 900ha recorded a small decline, an increased proportion of these transactions occurred in the
relatively lower priced West Coast which shifted the median lower.
13SA
South East
South East – historic performance
$4,500 450
$4,000 400
$3,500 350
$3,000 300
$2,500 250
$4,150 $2,000
$1,500
$1,000
200
150
100
Median price per hectare $500 50
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 South Australia increased by
23.4% 23.4 per cent in 2019. This was the fourth consecutive year of growth in the median price,
over which time strong livestock prices have fuelled an appetite for expansion and have been
a major driver behind a near doubling of the region’s median. This growth came after a period
of 10 years between 2005 and 2015 when the median price was volatile but showed no trend.
2019 median price growth
From the field
“A major driving force behind rising land prices in the South East has been growing
interest from many sheep and cattle operations looking for expansion opportunities.
Favourable seasonal conditions, good commodity prices and a strong uplift in
land values have enabled more graziers to be in a position to consider expansion.
100,256 Stronger demand from graziers has been coupled with heightened interest from
outside the area as farmers from other regions seek to extend seasons in a different
rainfall zone by diversifying their holdings.”
Hectares of land traded
Simon O’Leary, Rural Bank, Mt Gambier.
The Lower South East and Mid-South East continued to be highly sought after areas with
strong and consistent growth in median price per hectare over the last four years, however it
was municipalities in the Murray and Mallee that recorded the strongest growth in median price
per hectare in 2019.
8.5% The number of transactions in the region declined by 12.7 per cent, the second consecutive
year of lower transactions but still five per cent above the ten-year average of 275 transactions
per year.
Compound annual growth
over 20 years
14South East – transactions by price range
120
100 2019
2018
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 decline in the number of transactions in the South East in 2019 occurred almost exclusively in the lower price range of less than
$2,000/ha which had 49.6 per cent fewer transactions than 2018. This trend was evident in almost all municipalities in the region.
The higher price ranges recorded an increased number of transactions. Growth in the number of transactions priced greater than
$8,000/ha was most evident in the Wattle Range and Tatiara municipalities.
The combination of fewer transactions in the lowest price range and more transactions in the higher prices ranges shifted the profile
of transactions away from the lower end to create a more even spread of transactions across the price ranges which contributed to the
region’s median price per hectare increasing.
Performance by land size
Median $/ha No. of transactions
Parcel size
(ha)
2019 % change 10yr CAGR Decile 2019 YoY +/-
30–100 $5,585 20.4% 5.6% 10.0 104 10
100–200 $4,145 6.9% 10.6% 9.6 63 -17
200–300 $4,211 -18.4% 4.4% 9.6 30 -11
300+ $3,217 109.7% 10.1% 10.0 92 -24
Overall $4,150 23.4% 8.3% 10.0 289 -42
The decline in the number of lower priced transactions is reflected in the decline in the number of larger property transactions. The trend of
fewer large parcel sizes traded was consistent across all municipalities except for Tatiara and Wattle Range which recorded small increases.
Strong growth in the median price per hectare of parcels larger than 300ha is partially due to greater proportions of these transactions
occurring in the relatively higher priced Naracoorte and Tatiara municipalities and lower proportions in Karoonda East Murray, Loxton
Waikerie and Mid Murray.
The 30–100ha parcel size segment was the only one to record an increased number of transactions. Mid Murray and Grant municipalities
recorded large increases in transaction volume in this segment which offset a large decline in Murray Bridge. More transactions in this
segment was likely the driver of increased transactions priced above $8,000/ha.
15SA
Yorke and North
Yorke and North – historic performance
$6,000 400
350
$5,000
300
$4,000
250
$3,000 200
$5,232 $2,000
150
100
$1,000
Median price per hectare 50
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 the Yorke and North region increased by 21.5 per
21.5% cent in 2019, more than regaining the value lost in a 12.8 per cent decline in 2018, as demand
to acquire land strengthened and supply tightened.
Municipalities in the Lower North recorded increased median prices per hectare while
2019 median price growth movements in median prices were mixed for municipalities in the Mid North and Far North and
lower on the Yorke Peninsula.
From the field
“Demand for farmland in the Yorke and North region remained strong in 2019 as
buyers sought land with good proximity to markets and regional centres and look to
take advantage of low interest rates. Properties with reliable rainfall and production
51,468 histories were highly sought after. The quality of farmland as an investment saw
more landholders leasing land out rather than selling.”
Hectares of land traded Tony Harrison, Rural Bank, Adelaide.
The number of transactions declined for the second consecutive year, falling 9.7 per cent
to 195. The decline in transaction volume was concentrated in the Mid North where the
municipalities of Goyder and Mount Remarkable recorded significant declines.
7.1%
Compound annual growth
over 20 years
16Yorke and North – transactions by price range
60
50 2019
2018
Number of transactions
40
30
20
10
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 decline in number of transactions in the region was consistent across all price ranges except greater than $10,000/ha which returned
to a similar level to 2017 after a large decline in transaction volume in 2018. The largest declines in transaction volume in 2019 occurred
for the $0–$2,000/ha and $2,000–$4,000/ha price ranges as fewer transactions in these ranges occurred in the Mid North. The Lower
North also recorded fewer transactions between $2,000–$4,000/ha but was the primary location for the recovery in the volume of
transactions priced above $10,000/ha.
Performance by land size
Median $/ha No. of transactions
Parcel size
(ha)
2019 % change 10yr CAGR Decile 2019 YoY +/-
30–100 $8,007 22.4% 4.9% 10.0 65 -3
100–200 $5,225 7.3% 9.4% 10.0 65 15
200–300 $4,707 36.3% 5.8% 10.0 23 -11
300+ $2,289 -3.8% 10.9% 9.1 42 -22
Overall $5,232 21.5% 4.5% 10.0 195 -21
The decline in volume of lower priced transactions is evident in the large decline in volume of transactions in the larger parcel size ranges
in 2019. Fewer transactions of larger properties combined with an increase in transactions between 100–200ha shifted the profile
of transactions in the region towards the smaller end of the market for which dollar per hectare prices are typically higher. The shift in
profile contributed to growth in the region’s median.
Parcel size ranges smaller than 300ha in the Yorke and North region all recorded a third consecutive year of growth in median price per
hectare in 2019. Growth in the median was larger for segments that recorded a decline in the number of transactions, indicating strong
buyer appetite for lower supply.
The median price per hectare of parcels larger than 300ha recorded a small decline in median and transaction volume. The decline in
transactions was concentrated in Goyder and more pronounced for parcels between 300–500ha. The median price per hectare likely
declined as there was a larger proportion of parcels greater than 500ha.
17SA
Farmland sales by municipality
Median $/ha Number of transactions
Municipality
2019 5yr CAGR 10yr CAGR 20yr CAGR 2019 YoY +/-
Adelaide and Fleurieu
Adelaide Hills $24,614 5.3% 3.6% 6.3% 13 -6
Alexandrina $14,233 3.9% 1.4% 7.4% 47 11
Barossa $20,235 6.1% 2.3% 7.8% 9 -14
Kangaroo Island $2,558 5.3% 1.3% 6.3% 35 14
Mount Barker $17,056 -1.2% 1.5% 9.4% 13 3
Onkaparinga – -10.6% -3.6% -0.1% 3 2
Victor Harbor $13,447 6.2% -3.4% 5.6% 14 2
Yankalilla $10,129 1.6% 1.6% 6.7% 11 2
Adelaide and Fleurieu $11,560 0.8% 2.8% 6.2% 145 14
Eyre Peninsula
Ceduna – 12.1% 8.7% 5.8% 3 3
Cleve $1,660 17.9% 7.9% 10.6% 7 0
Elliston $1,431 2.7% 9.7% 5.2% 7 -1
Franklin Harbour – -8.2% 1.5% 3.6% 3 0
Kimba $1,396 15.0% 10.2% 7.2% 5 -4
Lower Eyre Peninsula $5,096 3.2% -0.2% 8.5% 13 -8
Streaky Bay $451 7.5% 9.3% 7.0% 10 -1
Tumby Bay $2,329 -4.8% 0.2% 6.1% 13 -6
Wudinna* – -8.4% -4.2% 1.7% 3 3
Eyre Peninsula $1,647 18.3% 7.8% 9.1% 64 -14
South East
Berri Barmera* – -13.3% -11.0% -1.5% 0 0
Coorong $3,267 16.4% 6.6% 9.3% 33 1
Grant $12,355 11.1% 3.4% 6.7% 23 -3
Karoonda East Murray $680 3.8% 3.2% 5.6% 9 -8
Kingston $4,276 11.2% 11.3% 11.6% 10 -2
Loxton Waikerie – 7.3% 0.1% 9.4% 3 -9
Mid Murray $1,965 10.4% 3.3% 6.1% 51 8
Murray Bridge $2,927 14.6% 1.8% 6.5% 10 -22
Naracoorte $5,950 5.5% 3.8% 7.8% 38 -1
Renmark Paringa – 3.2% 11.2% 6.7% 1 -1
Robe $9,880 16.3% 9.0% 8.3% 11 -1
Southern Mallee $1,792 25.9% 4.5% 6.4% 10 -9
Tatiara $4,160 8.7% 4.6% 7.8% 45 4
Wattle Range $10,493 14.6% 5.3% 8.6% 45 1
South East $4,150 13.3% 8.3% 8.5% 289 -42
18Median $/ha Number of transactions
Municipality
2019 5yr CAGR 10yr CAGR 20yr CAGR 2019 YoY +/-
Yorke and North
Adelaide Plains $10,508 11.1% 5.2% 8.5% 4 1
Barunga West $5,465 4.4% 2.1% 6.2% 5 3
Clare & Gilbert Valleys $11,399 6.7% 2.9% 7.2% 27 -3
Copper Coast $9,090 18.9% 6.9% 8.8% 6 5
Flinders Ranges $844 33.7% 4.9% 9.3% 5 3
Goyder $4,787 17.7% 13.3% 8.9% 19 -27
Light $14,567 5.5% 4.3% 8.8% 16 6
Mount Remarkable $2,595 4.6% 5.7% 9.3% 12 -7
Northern Areas $4,339 7.1% 3.6% 5.9% 35 3
Orroroo Carrieton $1,713 20.6% 9.1% 10.3% 6 -5
Peterborough – 15.3% 5.5% 13.0% 3 2
Port Pirie $5,940 6.8% 6.4% 9.3% 13 -1
Wakefield $3,395 -4.4% -0.7% 4.6% 20 3
Yorke Peninsula $4,464 -2.0% -0.4% 6.6% 24 -4
Yorke and North $5,232 4.6% 4.5% 7.1% 195 -21
South Australia $4,943 10.5% 6.5% 7.6% 693 -63
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.
19For 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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