DESPITE an upward shift in sentiment and activity on the back of improved commodity price outlooks and increasing market opportunities, land values continue to remain largely unchanged.
Herron Todd White rural national director Tim Lane said in his monthly review that aside from the sale of some specific properties, an improved trend in land values was not yet being reflected across the market as a whole.
"This view is what we suggested would be the case from late last year," Mr Lane said.
"Optimism is great. However, some caution is still warranted pending the start of a change being reflected in a longer term trend."
The strong outlook in the cattle market has seen sales of assets with scale attract attention from both new and established money.
Mr Lane said the opportunity to access finance at the current historically low rates and potentially lock in costs was also assisting the trend.
"The finance market seems very competitive and there are good deals being done for the right client profiles," Mr Lane said.
"All in all the shift in general confidence in a relatively short time frame is significant. Let us hope however the buyers in the market do not get too far in front of the trend and create a false dawn."
In southern Queensland improved positivity was being driven by better than expected winter rain.
"This has resulted in good strikes for winter crops in the region, most of which were planted on near full profiles of moisture," Mr Lane said.
"It is hoped that we have some more rain over the next couple of months which will ensure a harvest. There are also those cautious of a late cold snap given our warmer than average start to winter."
Mr Lane said the cattle market had also reached record levels driven by improved domestic and international demand, increased competition between feedlots and backgrounders, a falling Australian dollar and reduced supply.
However, the local property market was yet to see any broad scale upswing in sales volumes in light of the improved commodity prices. There had been instead one-off sales scattered throughout the region, he said.
"As expected those better developed properties in the higher rainfall areas have fared better than some of the more run down properties in western Queensland where there has been less demand and reduced sale prices for those having to meet the market," he said.
Mr Lane cited Drumfern, located 85 kilometres south-west of Roma, as an example of a stronger sale. Comprising 2794 hectares, the property reportedly sold for $1.2m with interest from several registered bidders. The freehold property is well grassed up after being locked up for an extended period and is advertised as being able to run up to 500 backgrounders. The holding previously sold in August 2006 for $830,000 though there has been significant improvements made over the elapsed time.
At the opposite end of the spectrum was Wongamere in the Nebine area north-west of Bollon. The harder 17,578ha mulga block with scattered lake depressions, artesian bore and basic improvements had an advertised carrying capacity of up to 800 cows and calves. The property has reportedly sold for $650,000 after being on the market for an extended period.
Agents advise that while there has been an improvement in sentiment there remains a shortage of rural property listings. There are several receiver appointed sales which have or will soon be put to market in the broader Maranoa region which will provide a good gauge for the local market.
