Rural property prices in New South Wales have hit “extraordinary” highs this year as farming families strengthen their property portfolios.
It comes despite pain rising interest rates have inflicted on the residential market.
Meares and Associates director Chris Meares said the ingredients for rural investment — favourable seasonal conditions, high commodity prices, low cost of funds, and the balance of supply and demand — were aligned and positive.
“Overall 2022 has been an extraordinary year … we have seen farm prices reach historical highs, and that pattern has continued throughout the year,” he said.
Rural property agent David Nolan, who has offices in Gundagai and Sydney, said the market had been very strong this year and interest rates had not had a bearing on farmland sales like they had on residential home owners.
Cattle property Kentucky Blue in the Northern Tablelands sold for more than $55 million this year.(Supplied)
“There’s plenty of cash and whether that’s borrowed cash or saved cash in reserve, I think there is plenty of money about and farmers have become very business orientated,” Mr Nolan said.
“People are aware of them and treat them like they should be treated.
“But I don’t think these rates at the moment are going to cause any troubles and I think they are pretty manageable.”
Mr Meares agreed that interest rates were not affecting property demand.
“At the moment farm incomes and farm returns are high and well and truly covering the cost of funds,” he said.
Family farmers buy in
Mr Nolan said buyers were changing.
“The demand for grazing operations is being driven by the next generation coming back to the land, because it’s worthwhile coming back, the agricultural sector is very strong and the