The Northern Territory has seen double-digit growth in the median price per hectare for rural area properties, despite rising interest rates and the general slump currently affecting residential property markets nationwide.

CoreLogic data shows the Territory leading the country with a 19.1 per cent increase in rural property prices, followed by South Australia with a 12.5 per cent increase for the second quarter of 2022—from April 1 to June 30.

Conversely, nationwide residential home values dropped by 0.2 per cent for the same period in review.

The national median price per hectare for rural properties increased by 11.2 per cent to $8,158 per ha for the quarter, with transaction volume going up by 2.3 per cent to 1,569 translating into a total of $3 billion in transactions.

Data also indicated that the rolling one-year trend in median per hectare price edged up by 3.3 per cent to $7,452 per ha.

Nationally, the yearly rolling median price per ha was pushed up by the increased proportion of grazing land transactions, highlighting the continuing strong uptrend in rural property values in every state and territory, the report stated.

“During the second quarter of 2022 there has been some convergence of commodity prices and property values, which is to be expected over the longer term due to the close correlation of these indexes,” Elders General Manager Farmland Agency & Agribusiness Investments Mark Barber said.

Mr Barber said with the possibility of a recession occurring, big exporting economies such as Australia may experience reduced demand for some of its agricultural products, pushing down commodity prices.

“If fears of recession increase, investors will look for assets that will maintain their value – defensive assets. Agricultural land produces food and fibre that people need even in difficult economic times, which will continue to support land values,” he said.

Herron Todd White CEO Gary Brinkworth said: “While elements such as interest rate rises and increased running costs are steadying values in some areas, good seasonal conditions and ongoing high demand for rural investments are insulating most property values.”

Property experts see the rural sector’s outlook continuing to be optimistic, with the fundamentals of the rural property market remaining strong.