'Tree Changers' Help Drive Prices of Farms For Sale NSW To New Heights

High Commodity Prices, Low Interest Rates And Strong Seasonal Conditions Drive Up Prices Of Farms For Sale New South Wales

New South Wales farmland prices hit another record in 2021, with the median price per hectare of farms for sale NSW jumping by 8.3 per cent to $6,339, the eighth consecutive year of growth, taking the average annual growth rate for the past five years to an astounding 11.8 per cent.

Record high commodity prices and low interest rates paired with excellent seasonal conditions have been the main factors that have driven this growth, according to the just-released Australian Farmland Values 2022 report.

Above: NSW farmland prices have risen 11.8 per cent per annum over the past five years

At a regional level, the Western (including Bourke, Central Darling, Cobar and Wentworth), and Southern (including Albury, Cootamundra-Gundagai, Griffith, Hay, Junee, Leeton, Murrumbidgee, Narrandera and Wagga Wagga) regions recorded the highest growth in median price per hectare increasing by 22.4 and 28.2 per cent respectively.

The South East region (including Bega Valley, Goulburn-Mulwaree, Queanbeyan-Palerang, Shoalhaven, Snowy Monaro and Yass Valley) also recorded solid growth of 18.6 per cent while modest growth of 5.5 per cent occurred in the Northern region (including Armidale, Ballina, Clarence Valley, Byron, Coffs Harbour, Gunnedah, Inverell, Lismore, Port Macquarie-Hastings, Richmond Valley, Tamworth and Tweed).

Conversely, the Central region (including Bathurst, Cessnock, Cowra, Dubbo, Forbes, Maitland, Mid Coast, Orange, Parkes, Singleton and Upper Hunter) of the state saw a small decrease of 0.5 per cent in the median price per hectare.

The relatively weaker performance of the Central and Northern regions – which accounted for 81.6 per cent of transactions state-wide – weighed on the overall growth in the state’s median price, the report found.

Above: The largest increase in sales was in transactions priced above $12,500/ha

After declining 37.3 per cent between 2017-2019, the volume of transactions leapt by 29.4 per cent to 3,977, the second consecutive year of growth. All regions saw an increase, with the Northern and Southern regions registering the largest growth with 32.9 and 39.1 per cent respectively. The Western and South East regions saw more restrained growth in transactions with increases of 6.7 and 12.3 per cent respectively.

Interestingly, the Central region saw a 30.4 per cent increase in transactions yet was the only region to see a decline in its median price per hectare.

The growth in transactions saw a 53.9 per cent increase in area sold, with 2.2 million hectares of farmland with a total value of $6.1 billion traded in 2021, a sizeable 62.7 per cent increase from 2020.

The increase in transactions occurred across all price ranges, with the largest increase in transactions priced above $12,500/ha, which nearly doubled in volume. Transactions in the $2,500-5,000/ha range also saw strong growth with a 29.1 per cent increase. Conversely, whilst transaction volume of the $0-2,500/ha price range increased by 13.5 per cent year-on-year, its proportion of all transactions fell to 19 per cent.

Across the state, the median parcel size sold was 126 hectares, a 9.6 per cent increase from 2020. There was a subtle shift in the distribution of parcel sizes with the proportion of transactions larger than 250 hectares rising from 30 per cent in 2020 to 33 per cent in 2021. While there were 19.6 per cent more transactions of parcels between 30-50 hectares in size, this segment’s proportion of total transactions fell from 25 per cent in 2020 to 23 per cent in 2021. Parcels of this size saw the largest year-on-year growth to the median price per hectare, increasing 24 per cent.

Above: The median parcel size sold was 126 hectares, a 9.6 per cent increase from 2020

Andrew Smith of Rural Bank, Eastern Australia, says the growth in both transactions and prices was driven by supportive seasonal conditions, good commodity prices, and plenty of motivated buyers.

“Many regions of New South Wales saw outside interest in farmland as city-dwellers looked to move regionally,” he says.

“Moving forward into the rest of 2022, the market should remain reasonably buoyant as the Central and Western regions begin to see a greater supply of properties on the market, and with irrigation storages in the Northern region being full. Interest rates, however, may start to play a stronger role and slow any further growth to farmland values.”

If you’re looking to buy farms for sale NSW check out some of our favourite farms for sale NSW below. To view almost 900 farms for sale NSW click here.

Farms For Sale NSW: Mudgee

This farm for sale NSW, ‘Guntawang’, is one of Australia’s most notable and historic rural properties located in the picturesque Mudgee region on the banks of the pristine Cudgegong River.

Above: ‘Guntawang’ is one of Australia’s most notable and historic rural properties

The birthplace of Henry Lawson’s mother, the property has always held a reputation for producing elite thoroughbreds and fine livestock, with a rich history dating back to the very first land grant in 1821.

Above: The grand homestead sits on a hill, overlooking the surrounding paddocks

Its grand homestead sits on a hill, overlooking the surrounding paddocks and down towards the Cudgegong River, and has recently undergone refurbishments retaining its distinctive Italianate characteristics and features, including impressive marble fireplaces, 15-foot ceilings, wide verandas with cast-iron pillars, and floor-to-ceiling sash windows.

Above: The home includes impressive marble fireplaces and 15-foot ceilings

The home has extensive climate controls, including reverse-cycle air-conditioning, underfloor heating and stunning fireplaces throughout, as well as a renovated inground pool and pavilion.

Above: ‘Guntawang’ boasts a renovated inground pool and pavilion

Another feature of ‘Guntawang’ is its access to secure water. There is approximately 3km frontage to the regulated Cudgegong River with 221ML irrigation river water licence, ground water irrigation bores, dams, creeks and an average yearly rainfall of 670mm.

Above: The 451.5-hectare property currently produces high-quality lucerne hay

The 451.5-hectare property consists of prime alluvial soils, rich basalt and limestone hills with approximately 360 acres of river flat paddocks set up and suitable for irrigation. The property currently produces high-quality lucerne hay, which is stored on farm, and has a mixture of improved and native pastures.

Above: The property includes colonial brick stables and coach house, and separate staff and guest accommodation

Infrastructure also includes colonial brick stables and coach house, separate staff and guest accommodation, machinery, workshop and hay sheds, vet service complex and covered round yards, horse walker and training facilities, 2,000-metre grass and sand racetrack, and numerous yards with shelters and water troughs.

Above: ‘Guntawang’ boasts numerous yards with shelters and water troughs

‘Guntawang’ is located only five kilometres from Gulgong, 25 kilometres from Mudgee and an hour’s drive to Dubbo.

Click on the following link for more information on this farm for sale Mudgee NSW.

Farms For Sale NSW: ‘Hayfield’ And ‘Tiagarra’, 220 Ellis Lane, Forbes

This farm for sale NSW – ‘Hayfield’ and ‘Tiagarra’ – is highly productive irrigated horticultural enterprises featuring vegetable production supported by cool room facilities, sorting and washing line, and quality secure water in the state’s Central West, a region highly regarded for diversity and quality of agricultural production.

Above: ‘Hayfield’ and ‘Tiagarra’ are highly productive irrigated horticultural enterprises

The properties comprise a total landholding of 206 hectares including an established horticultural development producing watermelon and pumpkin with wheat and barley as rotational crops. Average 2021-22 yields were 79 tonne per hectare for watermelons, 96 tonne per hectare for grafted watermelons and 48 tonne per hectare for pumpkins.

Above: The properties produce watermelon and pumpkin with wheat and barley as rotational crops

Secure water entitlements, including 1,034 megalitres of high-quality Lachlan alluvial groundwater, make it highly suitable for use on all types of vegetables, tree crops, sweet corn and lucerne. Extensive irrigation incorporating mainline, sub-mains and lay flat hose service 11 blocks to drip tube laid under plastic, supplied from three operational bores.

Above: High-quality groundwater make it highly suitable for use on all types of vegetables, tree crops and lucerne

Excellent operational infrastructure includes machinery shedding, workshop, irrigation infrastructure, office, staff amenities, cool room, washing and sorting line, extensive produce storage space, all powered by independent generator.

Above: The horticultural enterprise featuring cool room facilities and a sorting and washing line

The current production of ‘Hayfield’ and ‘Tiagarra’ is sold through the Lamanna Premier Group at fruit and vegetable markets in Brisbane, Sydney, Melbourne and Adelaide.

Above: The enterprise achieved an average yield of 48 tonne per hectare for pumpkins in 2021-22 

The expression of interest process - which includes residences on both ‘Hayfield’ and ‘Tiagarra’ - closes Thursday, June 16 at 11am, and includes the opportunity to purchase the two properties in one line or as independent assets.

Above: Both ‘Hayfield’ and ‘Tiagarra’ feature residences

Click on the following link for more information on this farm for sale 220 Ellis Lane, Forbes.

Farms For Sale NSW: 1281 Towarra Road, Inverell

Located in the renowned Keera cattle breeding/fattening area, this farm for sale NSW comprises around 3,957.83 hectares of open, rolling hills featuring extensive natural grass pastures and clovers.

Above: The property comprises around 3,957.83 hectares of open, rolling hills

‘Noonameena’, which has been successfully operated by a husband-and-wife team for many years, is a reliable livestock breeding property with a 1,200-head carrying capacity.

Above: ‘Noonameena’ is a reliable livestock breeding property with a 1,200-head carrying capacity

It is currently conservatively stocked with 800 PTIC females plus 120 replacement heifers (if required, 600 of these are available to purchase). There is scope to increase this carrying capacity with the introduction of fertiliser, pasture improvement and additional fencing.

Above: ‘Noonameena’ has three freshwater creeks flowing through the property

Approximately 200 hectares of the land holding is currently under cultivation, with the farm property’s soft soils suitable for both summer and winter fodder production.

Above: The property has two sets of cattle yards, two sets of sheep yards, horse stables, tack room and cool room

The property boasts three residences. The main residence is under two years old and comprises five bedrooms, 2.5 bathrooms, large open plan living area, an in-ground swimming pool and well-kept grounds.

Above: The main residence features an in-ground swimming pool and well-kept grounds  

There are also numerous new sheds, two sets of cattle yards, two sets of sheep yards, horse stables, tack room and cool room.

Above: The main residence comprises five bedrooms, 2.5 bathrooms and has a large open plan living area

‘Noonameena’ is well fenced into approximately 16 paddocks plus five holding paddock; and has three freshwater creeks flowing through the property, five equipped bores and two unequipped bores, 16 concrete troughs and 16 sizeable dams.

Above: ‘Noonameena’ boasts three residences

Located close to key regional centres including Inverell, Tamworth and Armidale, a property of this size, with the added bonus of scope to increase carrying capacity, is a rare opportunity.

Click on the following link for more information on this farm for sale 1281 Towarra Road, Inverell.

Farms For Sale NSW: 600 Central Lansdowne Road, Upper Lansdowne

Situated on 40.73 hectares, this farm for sale NSW boasts two homes at opposite ends of the property, and approximately 500 olive trees each with their own watering system from the large dam.

Above: This 40.73-hectare farm for sale NSW boasts two homes at opposite ends of the property

Serviced by tar-sealed road frontage, the balance of land is a mix of cleared and timbered country with three dams in total. There is also plenty of room for cattle or horses.

Above: The property boasts three dams and has plenty of room for cattle or horses

Home one is situated at 674 Central Lansdowne Road and features four bedrooms – including a master bedroom with ensuite, three expansive living areas, and a kitchen with stove and gas cooktop, and electric oven.

Above: Home one is situated at 674 Central Lansdowne Road and features four bedrooms

It boasts wide verandas offering beautiful vistas over the property, an above-ground pool with deck, large shed with concrete floor and power, three large water tanks, vegie gardens and a variety of fruit trees.

Above: Home one features a kitchen with stove, gas cooktop and electric oven

The second colonial-style house – currently rented for $600 per week – is accessed at 600 Central Lansdowne Road – and comprises three-to-four bedrooms, open-style living with lounge/kitchen/dining area, tiled bathroom, pool with deck and entertaining area, double car accommodation, steel round yard and sundry shedding.

Above: The second colonial-style house comprises three-to-four bedrooms and lounge/kitchen/dining area

This is an outstanding opportunity for two families to invest in a property that has two homes with two separate entrances and the ability for income from the olive trees, which include Manzanilla, Frantoio and Mission varieties suitable for table or pressing.

Above: The property has approximately 500 olive trees each with their own watering system from the large dam

Click on the following link for more information on this farm for sale Central Lansdowne Road, Upper Lansdowne.

Farms For Sale NSW: 1245A Paterson Road, Paterson

Established as the First Paterson Small Land Grant in 1821, ‘Orange Grove’ is famously known as one of the most sought-after land holdings in the Hunter Valley.

Above: ‘Orange Grove’ is famously known as one of the most sought-after land holdings in the Hunter Valley

First granted to John Powell on March 5, 1821, this site of this farm for sale NSW was chosen for its rich river flats with approximately 750m of frontage to Paterson River.

Above: The property boasts approximately 750m of frontage to Paterson River

Offering 107.78 hectares of highly productive, pasture improved grazing country, ‘Orange Grove’ would also suit a multitude of agriculture/equine facilities, while its long water frontage provides rare lifestyle benefits of fishing, swimming and boating on the banks of your own property.

Above:  ‘Orange Grove’ offers 107.78 hectares of highly productive, pasture improved grazing country

The key feature of this property is the first-class irrigation system in conjunction with the 496-megalitre water licence from the Paterson River (plus three large earth dams and a lagoon), producing an almost drought-proof holding.

Above: The property includes a first-class irrigation system and 496ML water licence from the Paterson River

Utilising a central lane system with 14 pasture improved paddocks, the irrigation system includes 1.8km of eight-inch irrigation mainline, six-inch mainline hydrant to the river, 16 outlets along mainline, 63kw submersible Grundfos pump and pump control system, and two Mirani 350m x 110mm hard hose irrigators.

Above: 'Orange Grove’ has a carrying capacity of 100 breeders

'Orange Grove’ has a carrying capacity of 100 breeders and its Ru1 Primary Production Zoning allows for future development opportunities such as dual occupancies, intensive livestock agriculture, tourist and visitor accommodation.

Above: The property's zoning allows for intensive livestock agriculture

This historic farm for sale NSW Hunter Valley also boasts a comfortable three-bedroom family dwelling, an open machinery shed, single vehicle garage and cattle yards.

Above: 'Orange Grove' boasts a comfortable three-bedroom family dwelling

Split over two titles (and a minimum lot size of 40ha) and located just 20 minutes from Maitland and 45 minutes from Newcastle, the holding allows for future subdivision potential (subject to Port Stephens Council approval).

Click on the following link for more information on this farm for sale 1245A Paterson Road, Paterson.