Three-Peat: Prices Of Farms For Sale Tasmania Rise For The Third Consecutive Year

Constrained Supply, Low Rates And Rising Demand Fuel Tasmanian Farmland Values

A combination of constrained supply, low interest rates and rising demand saw Tasmanian farmland values rise for the third consecutive year in 2021 to again hit record highs.

This led to a 7.6 per cent rise in median price to $14,730/ha, further pushing farmland prices into record territory following the 25.3 per cent increase recorded in 2020, according to the just-released Australian Farmland Values 2022 report.

Above: Tasmanian farmland values have recorded a cumulative average growth rate of 8.9 per cent over the past 20 years

The increase in median price during 2021 came in well below the five-year cumulative average growth rate (CAGR) of 11.2 per cent and is more in line with the longer-term 20-year CAGR of 8.9 per cent.

The growth in median price per hectare was observed across all regions of the state. South Tasmania recorded the largest increase in median prices as a drop off in transactions located within the lower-priced Central Highlands pushed the median higher.

Above: The proportion of transactions has shifted towards the higher end of the market in 2021

Growth throughout the Northern and North West regions of 4.8 per cent and 7.8 per cent respectively were also recorded as strong seasonal conditions across much of the state left dairy and beef producers in a healthy position, resulting in increased demand for grazing land.

Flinders Island saw prices rise; while King Island recorded a decline in median price, albeit off a low base of transactions.

Potential buyers had to compete for even fewer properties in 2021 in comparison to 2020 with the state-wide transaction volume falling 15.2 per cent to just 189 transactions, 18.1 per cent below the 10-year average and the fourth consecutive year that transaction volume has declined.

Above: Farmland parcels of 40-80 hectares experienced the largest percentage increase in median value in 2001

All up an estimated 46,971 hectares of land was traded in 2021, a large jump from 2020 and the largest area of land sold across the state since 2008 when there were almost twice as many transactions recorded. This increase in land traded, paired with an increase in farmland prices, has seen the total value of farmland traded increase by 67 per cent to a record $536.9 million.

The overall decline in transaction volume saw the proportion of transactions shift towards the higher end of the market in 2021. The proportion of transactions below $12,000/ha declined in 2021, with only 38 per cent of all transactions falling within this price range, down from 42 per cent in 2020.

Farms For Sale Tasmania: Northern Region

The median price per hectare of farmland in the Northern region of Tasmania stabilised to some extent in 2021, increasing by a healthy 4.8 per cent following substantial rises of 21 per cent and 26.1 per cent in 2020 and 2019 respectively.

Most municipalities across the region recorded an increase with only the Northern Midlands and Break O’Day municipalities seeing a decline due to a drop off in availability of smaller, more expensive land parcels. Launceston, Dorset and Georgetown were some of the best-performing municipalities.

Above: Farmland values in the Northern region of Tasmania increased by a healthy 4.8 per cent in 2021

Buyer demand across the region remained strong with a 9.3 per cent increase in transaction volume throughout 2021 as existing landholders looked to cash in on the strong demand and high farmland prices. All municipalities saw an increase in transaction volume with the only fall in sales observed in Dorset.

This increase in transaction volume was skewed towards larger parcel sizes, which are typically priced at a lower price per hectare. Only 28 per cent of transactions were in the 15-50 hectare range compared to 40 per cent in 2020, while 30 per cent of transaction volume was over 120 hectares in comparison to only 23 per cent in 2020.

Due to the reduced availability of smaller land parcels, the median value for these parcels rose substantially while the opposite occurred for land parcels larger than 120 hectares which saw a 3.6 per cent decline in median price per hectare.

Farms For Sale Tasmania: North West Region

North West Tasmania recorded growth in median price per hectare for the third consecutive year in 2021, up 7.8 per cent to $18,832/ha following a substantial jump of 26.7 per cent in 2020.

Growth was relatively consistent across the region with six out of the eight municipalities recording an increase. A strong appetite for expansion amongst corporate buyers continued to push property values higher.

Transaction volumes across the region fell 19.3 per cent in 2021, with just 96 sales were recorded, the lowest number of transactions since 2012.

Above: North West Tasmania recorded growth in median price per hectare for the third consecutive year in 2021

The decline in transaction volume was concentrated on lower-priced transactions in 2021 with 40.6 per cent fewer transactions below $12,000/ha while transactions over $16,000/ ha fell by only 14.5 per cent compared to 2020.

Interestingly, the proportion of smaller properties traded also declined in 2021 as transactions within the 15-40 hectare range fell from 42 per cent of the region’s transactions in 2020 to only 32 per cent in 2021. Meanwhile, transactions within the 40-80 hectare range accounted for 41 per cent of regional transactions, up from 23 per cent in 2020.

Median price growth was recorded across all parcel size ranges, led by the 40-80 hectare range. However, it is the largest parcel size range of over 120 hectares that holds the highest longer-term growth rates with a 10-year CAGR of 10.8 per cent.

Farms For Sale Tasmania: South Region

The South region of Tasmania recorded a rebound in the median price per hectare of farmland in 2021, rising for the first time since 2017 by 50.9 per cent to $7,630/ha – the largest year-on-year growth in median price seen across the region over the past 20 years.

Increases were recorded in six of the region’s 10 municipalities.

The number of transactions within the South region declined for the fourth year in a row with total transaction volume dropping 40.7 per cent in 2021, a record low for the region. The drop in transactions was spread across most of the region with only the Derwent Valley, one of the higher-priced municipalities in the region, recording an increase in transaction volume.

Above: The South region of Tasmania recorded its largest YoY growth in median price in 20 years in 2021

The decline in transaction volume was primarily seen in the lower-priced transaction ranges. The proportion of transactions under $4,000/ha declined by 20 per cent in 2021 while the proportion of transactions between $4,000-$16,000/ha increased by 32 per cent.

Fewer transactions were recorded across all parcel size segments but larger declines were seen in medium-sized transactions between 40-120 hectares.

Reduced supply of land contributed to all parcel size ranges recording considerable rises in median prices per hectare in 2021.

If you’re looking to buy farms for sale Tasmania, check out some of our favourite farms for sale Tasmania below. To view some 224 farms for sale Tasmania click here.

Farms For Sale Tasmania: 45 Joes Road, Caveside

Located in a most striking lush valley setting, this dairy farm for sale Tasmania comprises around 218.5 hectares (540 acres) plus an additional 16.18 hectares (40 acres) available as an ongoing leasehold with the first option for future purchase.

Above: This farm for sale Tasmania is located in a most striking lush valley setting

‘Parsons Farm’ milks approximately 280 cows, with infrastructure comprising a 22-bail-swing-over-herringbone dairy, calf shed, and spacious five-bay machinery/implement shed.

Above: This farm for sale Tasmania boasts a 22-bail-swing-over-herringbone dairy and calf shed

Located conveniently less than one hour from both Launceston and Devonport, the farm features more than 55 fenced paddocks and an excellent dairy laneway system.

Above: This farm for sale Tasmania features more than 55 fenced paddocks and an excellent dairy laneway system

Spread over six adjoining titles, the farm has around 16.18 hectares (40 hectares) under a centre pivot, with a further 8.09 hectares (20 hectares) with hard hose irrigation.

Above: This farm for sale Tasmania has around 16.18 hectares under a centre pivot

With an array of elevated dams providing natural gravity fed pressure, as well as ongoing natural feed from the Western Tiers catchment at the rear of the property, irrigation is straightforward and plentiful. The area enjoys a consistent annual rainfall of around 1,000-1,200mm.

Above: This farm for sale Tasmania boasts an array of elevated dams providing natural gravity fed pressure

This charming rural property features two farmhouses, including a four-bedroom home offering master with ensuite, established gardens and nearby Lobster Rivulet frontage.

Above: This farm for sale Tasmania features two farmhouses, including a four-bedroom home

Click on the following link for more information on this farm for sale Tasmania at 45 Joes Road, Caveside.

Farms For Sale Tasmania: 165 Eva Gully Road, Brooks Bay

This is a rare opportunity to purchase an organic farm for sale Tasmania, which comprises almost 81 hectares (200 acres) just 50 minutes from the Hobart CBD overlooking Brooks Bay.

Above: This farm for sale Tasmania is just 50 minutes from the Hobart CBD overlooking Brooks Bay

‘Hope Hill Organic Farm’ produces fresh fruit and vegetables from a sizeable glass house and vegetable patch, including freshly dug potatoes and garlic - all organically grown. There are also three hothouses - increase your vegetable yield or gardens to create your own market garden if you desire.

Above: This farm for sale Tasmania produces fresh fruit and vegetables from a sizeable glass house and vegetable patch

The farm also features more than 150 fruit trees scattered over the property, including apples, apricots, plums, passionfruit and vines. Plus, free range eggs are in abundance from the lovely girls that reside in the chook house.

Above: This farm for sale Tasmania features more than 150 fruit trees scattered over the property

The extremely fertile pastureland is fenced into 13 paddocks, all with ample water supply gravity fed to each paddock, suitable for cows, sheep or any farming venture.

Above: This farm for sale Tasmania is suitable for cows, sheep or any farming venture

There is also a profitable timber mill in operation on the rural property. The land is currently zoned rural resource providing opportunity for further economic development.

Above: This farm for sale Tasmania comprises almost 81 hectares of extremely fertile farmland
The property boasts numerous cottages used for accommodation plus well-built timber barns, one of which is lined with celery top pine. There is even a recording studio on site. Please note: no buildings or barns have council approval.

Above: This farm for sale Tasmania boasts numerous cottages used for accommodation plus well-built timber barns

Among the largest land holdings in the Huon Valley, the options for this property are endless.

Click on the following link for more information on this farm for sale Tasmania at 165 Eva Gully Road, Brooks Bay.

Farms For Sale Tasmania: 5327 Frankford Road, Moriarty

Rarely does a property of this calibre come to market. Comprising approximately 54.95 hectares (136 acres) with outstanding rural and mountain views, this farm for sale Tasmania is mostly used for cropping broad beans, peas, poppies and potatoes and a small portion for livestock.

Above: This farm for sale Tasmania is mostly used for cropping and a small portion for livestock

What’s more, the property is also perfect for horse agistment. There are three horse arenas (one large, one small, one square) and a stable for two horses, two tack rooms plus an open wash bay area.

Above: This farm for sale Tasmania is also perfect for horse agistment

There’s also plenty of sheds including a three-bay workshop with skillion shed, large hay barn, old dairy with cattle yards, and a renovated granary with so much potential for its use.

Above: This farm for sale Tasmania includes plenty of sheds including a three-bay workshop and large hay barn

The rural property boasts exceptional rich basalt soils and benefits from good water supply via two dams with a combined capacity of 13.5 megalitres, a 60-megalite bore and 20 megalitres from the Mersey Scheme.

Above: This farm for sale Tasmania boasts exceptional rich basalt soils and benefits from good water supply

Recently repainted inside and out, the four-bedroom family residence features three generous-sized bedrooms on one side and another decent-sized bedroom plus rumpus on the other that leads to a double garage that would be the perfect parent or teenager’s retreat, extended family area or a home office set up.

Above: This farm for sale Tasmania features a four-bedroom family residence with three generous-sized bedrooms

Located 15 minutes from Devonport and Port Sorell, the timber kitchen is central to the homestead; while the bathroom is large and luxurious, with his-and-hers wash basins, a soaking tub and separate toilet.

Above: The timber kitchen is the centrepiece of the home on this farm for sale Tasmania

Click on the following link for more information on this farm for sale Tasmania at 5327 Frankford Road, Moriarty.

Farms For Sale Tasmania: 42 Bilsons Road, Irishtown

This farm for sale Tasmania is ideal for the horse enthusiast, boasting a 60m x 20m all-weather sand arena with riding lights for night-time work, 25-metre sand round yard, four small horse paddocks and a wash bay.

Above: This farm for sale Tasmania is ideal for the horse enthusiast

All internal fencing was replaced 14 months ago and a new water system installed that is gravity fed from a header tank for stock water and articulated to the paddocks.

Above: This farm for sale Tasmania comprises a total of 31 paddocks plus four dedicated horse paddocks

Comprising a total of 31 paddocks (plus the four horse paddocks), this winter the property has run 120 head of cattle grazing all season. The winter before the property had 450 head plus kale crops. Stock yards and loading facilities are all in good condition.

Above: This farm for sale Tasmania supported 120 head of cattle grazing this winter

Some 35 per cent of the farm's property comprises young grass and new pasture. Silage is made every year on the property, which has had regular and reliable fertilizer history.

Above: This farm for sale Tasmania boasts four large concrete sheds plus four small ones in the horse arena

A 15-20-minute drive to Smithton, the property has an amazing amount of good covered storage with four large concrete sheds plus four small ones at the horse area.

Above: This farm for sale Tasmania features a large four-bedroom home plus dedicated office
The large four-bedroom home also features a dedicated office, two bathrooms, and an expansive entertaining patio and spa area located in close proximity to the residence.

Above: The home on this farm for sale Tasmania boasts multiple indoor and outdoor entertaining areas

The other bonus of this property is a beautiful bush picnic area with a running creek which is a great place to relax and enjoy the natural bush setting.

Click on the following link for more information on this farm for sale Tasmania at 42 Bilsons Road, Irishtown.

Farms For Sale Tasmania: 130 Newmans Creek Road, Koonya

A unique opportunity exists to purchase a rare combination of large acreage with earning potential, multiple outbuildings and sheds, and an expansive family home.

Above: This farm for sale Tasmania is spread over 62.7 hectares of green pastures and tall timber

This farm for sale Tasmania, at 130 Newmans Creek Road, Koonya, is spread over 62.7 hectares (155 acres) of green pastures and tall timber and boasts running creek on the property.

Above: This farm for sale Tasmania boasts two dams and a creek running through the property

The property is currently utilised to graze cattle with supporting stock yards and two dams. The fenced paddocks are used for horses. This includes a well fitted out stable.

Above: This farm for sale Tasmania is currently utilised to graze cattle with supporting stock yards

The property features multiple functional outbuildings including a hay shed and a workshop equipped with 10kw of solar power, three-phase power and mechanic’s pit, perfect for the storage and maintenance of vehicles and machinery.

Above: This farm for sale Tasmania features multiple functional outbuildings including a hay shed and a workshop

The well-presented brick home offers five generous-sized bedrooms, three with built-in robes and two with walk-in robes. The kitchen features a walk-in pantry, gas hot plates and Ilve oven. Leading from the kitchen is both the dining area and a sitting room that has expansive views over the stunning property.

Above: This farm for sale Tasmania includes a well-presented brick home offering five generous-sized bedrooms

A formal dining and lounge room gives this home a grand feel. The home has both gas and underfloor heating. Adjoining the home exists an opportunity to develop freestanding accommodation, with attached carport.

Above: A formal dining and lounge room gives the home on this farm for sale Tasmania a grand feel

Located within a short distance to Nubeena, the property is close to some of Tasmania’s premier tourist attractions including Port Arthur and the Tasman Peninsula's world-famous coastal walks.

Click on the following link for more information on this farm for sale Tasmania at 130 Newmans Creek Road, Koonya.