A Hot Australian Rural Property Market18-Jun-2017

It would indeed be far to say that the current market for rural properties in Australia is hot. Demand is up and values are rising.
Due to the lack of quality listings sale volumes are down amongst stronger competition. Matt Bishop of Horne & Bishop Moura said recently that selling the property was the easy part, getting the listing was the hard part.
In general that is the current state of play in all states where quality listings are hard to come by.
Each state will have their own "hot spots", in Queensland the hot spot would be Central Queensland with a very strong market and limited listings. As an example two Central Queensland properties "Granville" at Baralaba and "Mystery Hills" at Thangool have both been sold prior to going to auction. "Mystery Hills" had only been on the market less than one week. Both properties were marketed by Virgil Kenny of Elders Rockhampton.
In New South Wales the story is the same with rising values coming from strong buyer demand. In the south western slopes of New South Wales around the Cootamundra - Young area values have jumped fromaround $4450 Ha ($1,800 per acre) to around $7400 Ha ($3,000 per acre).
Sheep country in New South Wales has also seen an increase in rising land values going from around $180 per DSE up to $300 per DSE.
In Victoria Rob Rickard of Elders tells a similar tale in his area of south western Victoria where just this year over 8,500 hectares has been sold for over $60m in "off market" transactions.
South Australia and the other states all have the same problem a lack of quality listings. So what is driving this demand and rising values, simply commodity prices particularly cattle values where graziers receiving a boost to their income and low interest are looking to expand.Whilst there have been numerous corporate sales during the year there is still a very strong influence of buyers in the $2m to $5m bracket.
Whilst the strong prevailing cattle market is having an influence so too are the strong commodity prices for horticultural products, take the Macadamia industry right now, average prices paid for nut in shell has been around $3 to $3.50 per kg, today the current price being paid for nut in shell is around $5.50 kg, the result being strong demand from buyers seeking 5,000 trees and above but nothing on the market to meet that demand.
Finally whilst there has been plenty of commentary regarding foreign buyers in the Australian rural property market the underlying strength of our market comes from farmers and graziers wishing to expand their current operations and if a suitable property becomes available they will chase it.        


Return to Latest Property News