"Median prices increased to new record highs in every state, except the Northern Territory, with the supply of land on the market also increasing." He said the strength of demand exceeded the rise in supply, driving prices higher. "We have seen many farmers looking to acquire neighbouring blocks to expand the scale of operations or looking to regions further afield to diversify their land holdings, meaning that many properties are fiercely sought after by multiple cashed up and competing buyers. "Strong demand has made the market for farmland incredibly competitive. "Stronger agricultural commodity prices coupled with a second consecutive year of favourable seasonal conditions in most areas improved cashflows and strengthened balance sheets, with support from record low interest rates and confidence in the long-term outlook for the agricultural sector all combining to see a surge in the buying power of Australian farmers," the bank's general manager, sales partnerships and marketing, Simon Dundon, said. "The year ahead could potentially see more caution come into the market as underlying fundamentals become less stable." The bank said the number of hectares sold nationally during the year was bigger than Portugal. "The Northern and North-West regions have consolidated the large median increases reported in 2020, while the South region recorded significant growth after several years of declining prices.
"This supportive macroeconomic environment has driven a continued desire for expansion amongst both large family growers and corporate farms, ensuring strong buyer competition across most of the state. "Farmland values across Tasmania have continued to trend higher in 2021 as constrained supply, low interest rates and rising demand supported values," Launceston-based agribusiness relationship manager Dean Lalor said. Transactions were up by 22.5 per cent nationally to 10,032, amid what the bank described as a surge in demand. IN OTHER NEWS: However, Tasmania (minus 15.2 per cent) and Western Australia (minus 6 per cent) were the only states or territories where the volume of transactions decreased, to 189 in Tasmania's case. That was more than double the national median of $7087, with Victoria the only other state to top $10,000 ($10,583). According to Rural Bank's Australian Farmland Values report, Tasmanian farmland values increased for the third consecutive year in 2021, with the median (mid-point) value per hectare sold up by 7.6 per cent to a record high $14,730. It is the nation's most expensive farmland per hectare, and by a big margin.
You may also be interested in: JioChat: HD Video Call For PC (Windows & MAC).Tasmanian farmland is mirroring housing, and soaring in price.
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