10.2 % Tasmania. 9.3 % Flinders 2.1 % 4.8 % Tasmania AVERAGE ANNUAL MEDIAN PRICE GROWTH % 5 years years 3.9% 20 years 7.

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1 Tasmania King Island Tasmania 1.2 % Average annual growth over 5 years AVERAGE ANNUAL MEDIAN PRICE GROWTH % 5 years years 3.9% 2 years 7.7% 9.3 % Flinders Island 2.1 % North West 4.8 % Northern 7.8 % South 9.2 % Average annual growth over five years 46

2 $12, $1, $8, $6, $4, $2, Tasmania Number of transactions (RHS) (LHS) The median price of Tasmanian farmland increased by 19.3 per cent in 217, following a.3 per cent decrease in 216. The number of farmland transactions also increased in 217, up by 19.1 per cent to 274. The combination of increased transactions and a higher median price suggests that more sellers were drawn out, but demand from buyers still exceeded supply. The area of farmland traded in 217 was 27,629 hectares, an increase of 23 per cent from 216. The combination of a larger area of land traded and higher median price led to a 4 per cent increase in the value of farmland traded, which reached $232 million. 47

3 Tasmania Higher median prices were spread across all land size segments except for hectares. Increased transaction activity was also consistent across segments ranging from 12 per cent growth for hectares up to 27 per cent growth for the 4-79 hectare segment. The number of transactions increased by 18 per cent for both the hectare and greater than 15 hectare segments. The consistency in strong median price growth and higher volumes of transactions is another signal of the strength in demand for a wide range of land types in Tasmania. This is evidence of the underlying confidence in agriculture, with low interest rates and stable but strong commodity prices prompting land holders to look at expanding existing holdings. The median price for hectare properties increased by 28 per cent in 217, the largest increase of the four segments. The median for this segment grew by 43 per cent in the Northern region and 28 per cent in the North West, but lost eight per cent in the South. An increase in median of 23 per cent occurred for the 4-79 hectare segment. This was consistent across regions with 61 per cent growth in the northern region, 15 per cent in the North West and 12 per cent in the South. The nine per cent decrease in median for hectare properties was largely due to a 22 per cent decline in the median price for this segment in the North West, which accounted for 4 per cent of the state s transactions in this range. The median price for this segment increased by 51 per cent in Northern Tasmania and 75 per cent in the South. actions above 15 hectares experienced a 2 per cent rise in median price. Of these transactions, 4 per cent occurred in the North West where the median price increased by 83 per cent. Performance by land size Parcel size (ha) % 11,259 32% 1,256 31% 11,364 36% 11, 36% 14, % 9,122 26% 9,235 25% 9,5 27% 8,419 29% 1, % 7,651 21% 6,778 2% 9,492 22% 8,346 21% 7, % 2,981 21% 3,55 24% 4,685 15% 4,48 15% 5,293 Overall 247 8, , , , ,354 = actions

4 $14, 14 $12, 12 $1, 1 $8, 8 $6, 6 $4, 4 $2, Number of transactions (RHS) (LHS) $16, North West 4 $14, 35 $12, 3 $1, 25 $8, 2 $6, 15 $4, 1 $2, Number of transactions (RHS) (LHS) $8, South 16 $7, 14 $6, 12 $5, 1 $4, 8 $3, 6 $2, 4 $1, Number of transactions (RHS) (LHS) 49

5 Tasmania $8, $7, $6, $5, $4, $3, $2, $1, Tasmanian islands 26 Flinders transactions (RHS) Flinders median (LHS) King transactions (RHS) King median (LHS) The strong demand for Tasmanian farmland in 217 was evident across the state with all regions except King Island recording increases in both median price and number of transactions. The strongest growth in median price was recorded in Northern Tasmania which increased by 72.5 per cent, more than recovering from a 26 per cent decline in 216. The number of transactions in the Northern region increased 35.6 per cent. The median price in the North West increased by 11 per cent, building upon solid growth from 216. action volumes also increased, up 1.8 per cent. Central Highlands and Dorset were the stand out municipalities in this region. The South added 2.7 per cent to the median price, holding onto the strong gains of the previous two years. action volume increased by 7.5 per cent. Southern Midlands and Sorell showed exceptional growth in median. Flinders Island recorded a 33.5 per cent increase in median price after a stable year in 216. The King Island median fell 1.5 per cent, losing some of the exceptional gains recorded in 216. Average annual growth over the last five years has been strong for all regions, led by the South (9.2 per cent) and Northern (7.8 per cent) where there has been significant investment in irrigation and improved access to water. The outlook for Tasmanian farmland values remains positive with strong demand for a historically low number of property listings. Interstate and international buyers are recognising the value of farming in Tasmania, adding further competition to the market. Dean Lalor, Rural Bank, Tasmania.

6 Farmland sales by municipality Tasmania MUNICIPALITY REGION MEDIAN $/HA EST. # YEAR AVG SALES 217 Break O Day* Northern 3,35 1 Brighton* South 6,196 1 Burnie North West 8,159 9,157 5 Central Coast North West 14,429 13, Central Highlands South 5,17 3,223 8 Circular Head North West 14,117 11, Clarence South 1,796 4 Derwent Valley* South 4,819 2 Devonport North West 21,83 21,147 6 Dorset Northern 1,851 7,84 15 Flinders Island Islands 3,464 2, George Town Northern 15,596 1,863 4 Glamorgan-Spring Bay South 1,626 2,922 6 Huon Valley South 9,184 9, Kentish North West 14,41 13, King Island Islands 6,673 5,93 21 Kingborough South 9,69 11,489 5 Latrobe North West 15,191 15, Launceston Northern 14,4 1,55 8 Meander Valley North West 12,956 12,71 22 Northern Midlands Northern 8,292 9, Sorell South 14,433 8,238 5 Southern Midlands South 5,166 3,48 14 Tasman* South 7,31 1 Waratah-Wynyard North West 18,857 14,32 12 West Tamar Northern 12,446 9, Northern 11,46 9,36 61 North West 14,89 12, South 7,3 6, * Price information with a small volume of transactions should be used with caution. The median price for municipalities with less than four sales in 217 is not reported. 51