Elders Ltd.
Elders Ltd.
08/17/2022 | Press release | Distributed by Public on 08/16/2022 21:03
Five tightly held regions in Australia
17 Aug 22
Five tightly held regions in Australia
Following on from our article on the top five cropping regions in 2021, we decided to take a look at transaction volume.
Of the 39 agricultural regions analysed in the Elders Rural Property Update, the five listed below were among the most tightly held over the past three years.
Instead of just looking at median price growth, which is only one metric to consider when assessing the rural property market, we draw on multiple insights from the database, connecting the relationship between supply and demand.
This exercise isn't designed to fit a specific investment, it's purely hypothetical and a means to demonstrate how this data can be used to rank regions across Australia depending on the circumstances of the investor.
It's a fun and insightful way to compare different regions across Australia and a chance to learn something about a region you'd never heard of or considered.
The selection criteria
- Flat or declining trend in transaction volume since Q1-2019.
- Ranked according to the lowest average transaction volume index since Q1-2019.
Click on each region to view the historic trend for median price per hectare and transaction volume.
Graph showing one year rolling performance by quarter for the eastern region of Western Australia.
Major rural centres: Kulin, Lake Grace, Merridin and Narembeen.
Average transaction volume index 87.7, one-year rolling transaction volume has decreased by an average of 5.1 per cent (pc) per quarter since Q1-2019.
The rolling one-year median price per hectare has averaged a quarterly increase of 2.4 pc since Q1-2019.
Check out our latest rural real estate listings for Eastern WA.
Graph showing one year rolling performance by quarter for south Tasmania.
Major rural centres: Brighton, Cygnet, Hamilton, Kempton and Sorell.
Average transaction volume index 85, one-year rolling transaction volume has decreased by an average of 6.2 pc per quarter since Q1-2019.
The rolling one-year median price per hectare has averaged a quarterly increase of 5.1 pc since Q1-2019.
Graph showing one-year rolling performance by quarter for north west Tasmania.
Major rural centres: Burnie, Deloraine, Penguin, Smithton, Westbury and Wynyard.
Average transaction volume index 82.9, one-year rolling transaction volume has decreased by an average of 7 pc per quarter since Q1-2019.
The rolling one-year median price per hectare has averaged a quarterly increase of 3 pc since Q1-2019.
Graph showing one year rolling performance by quarter for south central Victoria.
Major rural centres: Bacchus Marsh, Ballarat, Inverleigh, Kyneton, Rokewood and Winchelsea.
Average transaction volume index 73.1, one-year rolling transaction volume has decreased by an average of 3.4 pc per quarter since Q1-2019.
The rolling one-year median price per hectare has averaged a quarterly increase of 3 pc since Q1-2019.
Check out our latest listings for south central Victoria.
Graph showing one year rolling performance by quarter for the Mid North and upper Yorke in South Australia.
Major rural centres: Ardrossan, Balaklava, Jamestown, Kapunda, Maitland, Port Pirie and Wallaroo.
Average transaction volume index 69.4, one-year rolling transaction volume has decreased by an average of 2.4 pc per quarter since Q1-2019.
The rolling one-year median price per hectare has averaged a quarterly increase of 2.2 pc since Q1-2019.
"It's no surprise that Yorke Peninsula and the lower mid north of SA rank as one of the most tightly held regions in Australia.
"With its consistent production, proximity and access to markets, services and export facilities, this region is rarely offered to the public market.
"The Yorke Peninsula is especially tight, with a soil profile capable of growing high yielding lentils. Landowners often lease or share-farm their property, maintaining a consistent income stream, rather than selling.
"A small holding near Mallala earlier this year was sold and achieved almost double expectations in a public campaign." - Adam Chilcott, Elders Rural Sales Executive, South Australia.
Check out our latest listings for Mid North and Yorke South Australia.
For context, these regions stand out because most regions in Australia experienced a rise in transaction volume towards the end of 2020 once drought breaking rain fell. The upward trend in transaction volume lasted until July 2021 for most regions. The increase was sharp, driven by farms which had been waiting for an opportunity to list at a time when their property looked its best.
This created buying opportunities for the ample number of buyers waiting in the wings, selling activity remained elevated after the initial increase primarily down to appealing prices which helped convince more farms to list. Transaction volume then began to decline for most regions settling back towards 2019 levels. However, for the five regions above there wasn't the same level of buying opportunities.
Perhaps some of the regions were a surprise or perhaps some were already on your radar.
If you'd like to find out more about your own region or the listings shown above, contact your local Elders Real Estate manager.
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Source data provided by Corelogic and analysed by Elders.