THE volume of farm sales in NSW has fallen by over 30 per cent since its peak early last decade because of tighter finance, drought and the strong Australian dollar.
The number of farms 250 hectares or larger that sold in the southern part of the state last year fell 38 per cent since peak levels in 2003, according to RPData figures compiled by Herron Todd White.
"It's always dangerous to generalise but this trend is consistent across the state," Herron Todd White valuer Robin Gardiner told The Australian Financial Review.
"There is no doubt that drought has a significant impact on people's capacity and confidence, and you need a lot more capacity to buy rural property."
Mr Gardiner drew a comparison between buying large farms and the principle of affordability in metropolitan housing. "The minimum cost to acquire and get started is much higher – you need at least $1.5 million to $2 million – it's a significant investment compared to housing."
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