‘Investing for the lifestyle and beauty’: Tasmanians lead rural investment

Rheban Farm, a spectacular slice of Tasmania’s east coast with 10 kilometres of private beaches, has just sold for about $15 million.

It is one of three major rural properties in the region to change hands in recent months. And, in a promising sign for the local market, all three sales have been to Tasmanians. 

“The stand-out for us is that it’s Tasmanians buying Tasmanian,” Elders state rural property manager Lachie Dornauf said.

The new owner of Rheban is Hobart City Councillor and former State Cinema owner, John Kelly. For him, the connection to the farm runs deep.

“Five generations ago, my great-great-grandfather came from Dublin as a convict,” Mr Kelly said.

“He served time on Maria Island, just five kilometres across the water from here, working a farm at Long Point. He spent about three or four years there.”

Now Mr Kelly owns the land across the picturesque waterway from where his ancestor once toiled.

“To be here with Mercury Passage, Maria Island as the backdrop, heritage buildings, honestly, it doesn’t get much better,” he said.

“Can you possibly imagine him looking over here one day when he’s working in the fields, thinking that my great-great-great grandson will have a farm over there? I mean, the synergy of it’s quite remarkable really.”

Mr Kelly, while admitting he was “no farmer” is keen to re-introduce some livestock on the property.

He said he was also keen to rejuvenate the land and look at regenerative agriculture, as well as agritourism projects.

But it’s early days — Mr Kelly only took over the property a month ago.

“I want to kick the dirt, smell the breeze and look at my options because the options are incredible.

“There’s work to be done, but the bones of the property and the buildings — there’s a lot of old heritage buildings on here as well. It’s just fantastic,” he said.

While Rheban is a lifestyle property, Tasmania is still a serious player in productive agriculture.

Median farmland values in the state have climbed to $23,202 per hectare, and to $27,019 in the state’s north-west, according to Bendigo Bank Agribusiness.

But those strong figures are largely driven by smaller rural parcels under 40 hectares, which attract premium prices. Larger properties are taking longer to sell, and their values have dipped slightly since the highs of 2022.

“Things have levelled out,” Mr Dornauf said.

“But what’s growing is national interest. Inquiries from interstate buyers, particularly from South Australia and Victoria, are up 34 per cent in the past year. That reflects how tough the seasons have been over there.”

Mr Dornauf said some of those buyers were syndicates, aiming to spread risk across diverse operations. Water security and climate stability make Tasmania an appealing hedge.

“When farmers invest interstate, they want to de-risk. Tasmania’s water supply helps ensure more consistent returns, whether it’s cropping or grazing,” he said.

Still, even the best farms are taking longer to sell.

“There’s a bit of hesitation,” Bendigo Bank’s Tony Anderson said.

With demand for dairy land rising above others, the next big parcel of land that may sell soon is in Tasmania’s north-east.

The sprawling 22,000-hectare property Rushy Lagoon on the state’s north-eastern tip has been on the market for 12 months.

It’s believed prospective buyers are conducting due diligence on the land, which has a dairy as well as sheep and beef operations and irrigation.

All eyes will be on the price it fetches.