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The Role of Institutional Rural Property in Diversified Investment Portfolios in NSW, Australia

Author/s: Chris Eves

Date Published: 1/01/2011

Published in: Volume 17 - 2011 Issue 2 (pages 215 - 229)

Abstract

The food and fuel crisis experienced in 2006 to 2008 has highlighted the importance of agricultural commodity production throughout developing and developed economies and has placed greater awareness and importance on rural property and rural property markets. These factors have led to an increased interest from major property investment institutions and property companies in the role of rural property in a mixed asset or mixed property investment portfolio. This paper will analyse rural property sales in New South Wales for the period 1990–2008, and will compare total return performance across a number of rural property sectors based on geographic location and land use type. These results show that the inclusion of rural property in an investment portfolio has benefits in relation to return and risk.

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Keywords

Capital and Total Returns - Farmland Values - Rural Land - Rural Land Total Returns

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