By Richard Fleming – Director Flemings Rural
The rural property market in 2024 has been shaped by a range of economic, climatic, and industry-specific factors. While it has been a challenging year for many, there are signs of recovery and opportunities for the right buyers. Below, we explore the key trends shaping the market and what they mean for buyers and sellers alike.
Easing prices in the south
After the booming prices of 2022 and 2023, the market in 2024 has seen a slight correction, particularly in the southern regions. Properties that once achieved record-breaking prices are now selling for less. This trend reflects a stabilisation of prices rather than a decline, providing a more balanced environment for buyers and sellers.
Economic pressures
High interest rates, declining red meat prices, and rising production costs have weighed heavily on the confidence of rural property buyers. These challenges, coupled with the sharp fall in commodity markets in late 2023, have significantly reduced market activity, as many prospective buyers continue to adopt a cautious wait-and-see approach despite favourable seasonal conditions.
Adding to the uncertainty, two of Australia’s top banks have delayed their forecasts for interest rate cuts to May 2025. This prolonged period of financial pressure is expected to further influence farmers and landholders decisions to buy, particularly as cash flow considerations mount due to declining commodity prices and increasing input costs.
It is our observation that land prices have reduced approximately 10–20% during this period. However, with fewer transactions taking place, it is challenging to pinpoint an exact percentage decrease.
Properties staying on the market longer
Another noticeable trend in 2024 has been the extended time properties are spending on the market. Without strong interest from neighbouring buyers, rural properties are now sitting on the market up to 60 days longer compared to the fast-moving conditions of 2022 and 2023. This slowdown reflects the cautious sentiment among buyers.
Opportunities for the right buyers
Despite the challenges, there are bright spots in the market. Active and well-prepared buyers have a unique opportunity to purchase properties at adjusted prices, providing a chance to expand or enter the in
dustry. The current market conditions present exciting options, with a variety of rural listings available. For those ready to act, this could be the ideal time to secure a property with long-term potential.
Looking ahead
At Flemings Rural, we are seeing early indicators of a recovery. As farmers adapt to the current conditions and commodity markets stabilise, we expect confidence to return. The rural property market has always been resilient, and we remain optimistic about its long-term outlook. For sellers, realistic pricing and patience will be key. For buyers, the current conditions provide a chance to secure quality properties in a less competitive environment.
At Flemings Rural, we’re here to help you understand the rural property market. Whether you’re buying or selling, our team is ready to assist you in making the most of the opportunities this year presents.
For more insights or to explore our current listings, get in touch with us today.