The analysis of NSW rural property investment returns: 1990-2014

Increasing populations and demand for urban development land is also placing greater pressure on food production. These population pressures are now being reflected in the need for increased agricultural food production from a declining rural land base. This increasing demand for rural land is also being evidenced by the additional interest shown by corporations and investment institutions in owning high quality rural land across a range of countries. Australian rural producers have been well recognised for the production of high quality rural commodities and very efficient levels. These attributes are now being reflected in the price being paid for quality rural land in Australia This paper analyses all rural land sale transactions across New South Wales for the period 1990 to 2014 to determine the investment performance across a range of NSW regional locations and rural land use classifications. Over this period there have been considerable differences in the average annual capital and total returns for rural land based on location of the land, the main rural land uses and the level of management ability of the farm operator. The established mixed farming and irrigation areas of the State have shown the most consistent average annual returns across the study period, with the pastoral areas of the State having the highest capital growth over the past three years. This paper provides a comprehensive overview of average rural land for the period 1990-2014