THE Mallee and Wimmera are the only shining light in Victorian farm values at the moment, according to the latest Elders Rural Property Report.
It states prices across Victoria took a step backwards during the first part of 2024 as seasonal conditions deteriorated and farmer confidence fell.
Elders Farmland Agency and Water general manager Mark Barber said the Victorian rural property indicator has fallen 15 per cent to $14,198/ha, wiping out the gains made across 2023.
Mr Barber added that sales volumes remain at historically low levels, with just 220 sales through the first quarter of the year – down 9 per cent compared with the previous quarter.
He said $322 million in properties changed hands in that time, also down by 24 per cent compared with the same quarter in 2023 and 32 per cent year on year.
“Overall market activity across Victoria remains limited, largely due to the contraction in the number of sales,” he added.
“Sale price trends were lower across most regions of Victoria, with the largest falls across the Victorian South-west and South-central, areas which have endured the toughest seasonal conditions.
“However, while sale numbers were down across most regions, in the Mallee and Wimmera sales lifted from 31 to 77 for the quarter – providing some drive for the market.
“Which has been underpinned by good quality commercial and corporate sized transactions, which have sold well to strong inquiry.”
At the other end of the market, he said activity has been more subdued, with a greater proportion of deals subject to debt funding coming under increased scrutiny by financiers and attracting limited buyer inquiry.
Overall activity fell, and while the number of properties sold during the first quarter of 2024 was down that 9 per cent on the previous quarter, they were actually down 17 per cent under year ago levels.
Mr Barber said this is the lowest turnover (by number of transactions) on record, slightly below the previous low set in second quarter of 2023.
“Poor seasonal conditions at the start of year in some southern agricultural areas saw a reduction in farmer confidence, leading to quarter-on-quarter declines in values across those states,” he added.
“That saw the Elders rural property market indicator for Victoria falling the 15 per cent during the first quarter and leaving it 8 per cent down on the same time last year.
“However, this must be seen in the context of very high rates of appreciation across this region during the past three years, when property prices increased by 11.7 per cent per year.”
