RISES in agricultural land values have outpaced all property types in the last 20 years.
In a landmark report by the Australian Property Institute comparing the growth in land values across two decades, the average increase in agricultural land was calculated at 256 percent while residential land rose 154 percent, industrial property increased 164 percent and commercial property increased 143 percent.
Based on ABARE figures available through to 2023, the Australian Property Institute Valuation Report found that agricultural property prices rose an average 12.8 percent per year.
In discussing the rise in housing values, Institute CEO Amanda Hodges said Australia was at an inflection point in its history.
“Australia has one of the fastest growing populations in the OECD, fuelled by record immigration, yet housing for younger Australians is more unaffordable than ever,” she said.
“Our economy is being transformed by the structural shift from fossil fuels to renewables, which will benefit the planet, but in some areas threatens the ongoing viability of scarce agricultural land, to be replaced by vast new solar energy farms.
“This report highlights the vital role expert, independent valuers played in determining the best use for land affected by the renewable energy rollout, carbon farming, and biodiversity initiatives.
“The renewable energy rollout and carbon farming initiatives are also fundamentally changing the economics of farming.
“Compensation parameters are changing to cope with the impacts of thousands of kilometres of transmission lines being erected across the nation to link wind and solar projects with the electricity grid.
“Carbon sequestration agreements are requiring valuers to understand increasingly complex relationships between landholders and third parties.”
While the national average increase in agricultural land across the years from 2003 to 2023 was 256 percent, the top performing state was Tasmania where farmland values increased on average by 689 percent, followed by Victoria (362 percent) and Queensland (332 percent).
