THE southern Queensland market has taken off. Toowoomba-based Herron Todd White valuer Doug Knight said while rural property values increases had not been consistent across all the regions, there had been a broad level of momentum building.
“There are sectors and industries out there that always lead and this time around it would appear to be no different with cattle again appearing to be the catalyst for demand,” Mr Knight said.
“Hindsight is a wonderful thing but given that there has now been a shortage of cattle in Australia for the past 12 months or so, the likelihood of an upward market adjustment of this nature occurring was always on the cards.
The likelihood of an upward market adjustment of this nature occurring was always on the cards.
“The issue is, however, how far will it go? The golden triangle of Taroom, Roma and Wandoan has set the pace. It is now evident that over the course of the past 12 to 18 months, the market within this sector has risen by 25 per cent to 35pc.”
Mr Knight said in some instances where adjoining owners were involved in the transaction, this increase was even higher.
Recent sales include Bracco, north-west of Roma selling in September 2016 for $2439/ha ($1000/acre); Myrnong in a similar location selling at auction for $2523/ha (just over $1000/acre) and Nardu north east of Roma, which made $2151/ha ($870/acre).
“This evidence would suggest that where previously it was accepted that an adjoining owner had the ability and was prepared to pay a premium, that premium was in the order of 10pc or so; one fully justifiable,” Mr Knight said.
However, Mr Knight said that accepted level was no longer evident.
“We would suggest that such premiums could be as high as 20pc,” Mr Knight said.
“Whether they are justifiable or not is another question and one that can only be answered by the buyer.”
He said there had also been a run on irrigation country on the inner downs. Sales included Warra Warra at Brigalow, Bandawing south of Bowenville and Campbells at Tummaville.
“Initial unconfirmed evidence would suggest that there is some market movement occurring in this sector as well, but until they settle, we cannot confirm to what extent,” Mr Knight said.
In the south west the 125,295ha (309,611 acre) Cunnamulla property Clover Downs had sold for about $26.6 million plus plant and some livestock.
The trophy holding that was bought by Hassad Australia in July 2010 for $18.576 million. The sale represents an increase in the order of 45pc over the past seven years.
“The big takeaway from all this is that the evidence suggests that the upward market adjustment is not just limited to one sector,” Mr Knight said.
“Broadly we are seeing a uniform adjustment in the market, something that has not been seen for a long time.”