The value of rural property sales in Australia surged 18 per cent in the year to May to more than $17.5 billion, according agents Landmark Harcourts.
The increase was due to rising values, and an increased number of higher value sales, because the total number of rural property sales fell marginally in the same period.
The general manager of Landmark Harcourts, Mark Brooke, said strong demand and fewer listings had driven an increase in value in several states.
"In South Australia and Queensland, the number of transactions dropped over the 12 months to May 2016, but the value increased by almost 20 per cent," he said.
"With positive market conditions, many are choosing to hold onto their properties rather than sell."
The numbers, to be released this week in the LandMark Harcourts' Benchmark report, are prepared by property analytics heavyweight CoreLogic.
The vast majority of sales are for small, under 40 hectare properties, which make up 67 per cent of the sales in NSW, 76 per cent in Victoria and 13 per cent in Queensland.
Price movement in this sector has been limited with the average price of sales up 8 per cent in Tasmania, 5 per cent in SA, 4 per cent in NSW, 3 per cent in Victoria, and 1 per cent in WA. In Queensland the average price fell marginally.
It is the bigger properties that showed higher price growth. In NSW, the average price of a sale over 1000 ha was 16 per cent higher than the year before. In Victoria the average price for a property between 100 ha and1000 ha was 19 per cent higher; in Queensland, sales over 1000 ha averaged 13 per cent higher; in SA the average sale price on properties 100-1000 ha was 30 per cent higher and 37 per cent higher for those over 1000 ha; and in WA the average price for properties over 1000 ha was up 15 per cent.
Mr Brooke said conditions were positive, both in the markets and on the farms, for which the Bureau of Meteorology's seasonal outlook has forecast above-average rainfall in eastern and northern Australia.
"Traditionally we see a larger number of listings hit the market over spring," he said.
"For those property owners considering selling at any time in the near future, now is an excellent opportunity, with strong buyer demand and less competition creating ideal market conditions."
This story first appeared on The Australian Financial Review.
