Rain driving rural property confidence

Rain driving rural property confidence, says valuers

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Winter rainfall is continuing to help drive rural property values, says Herron Todd White director Bradley Neill.

Winter rainfall is continuing to help drive rural property values, says Herron Todd White director Bradley Neill.

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Winter rainfall is continuing to help drive rural property values.

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WINTER rainfall across areas of the Darling Downs, Maranoa and far western Queensland regions has provided confidence for a good winter crop and strong herd numbers leading into the summer months.

Herron Todd White director Bradley Neill said in both 2018 and 2019, severe drought saw cattle and sheep numbers drop and, in many areas, no winter crops planted.

"2020 has provided far better farming conditions and with that has come strong appetites for rural property," Mr Neill said.

"The market is being driven by private farming families seeking additional areas for scale and interstate cattle and sheep producers looking to diversify into western Queensland, as country is considered cheap in comparison.

The market is being driven by private farming families seeking additional areas for scale and interstate cattle and sheep producers looking to diversify into western Queensland. - Bradley Neill, Herron Todd White

"With the unseasonally large bodies of feed on the ground at present, sellers are able to present their properties to market in conditions not seen for a number of years," he observed.

Writing in the monthly HTW Rural Report, Mr Neill said sale prices continue to exceed pre-sale expectations with numerous transactions showing significant price premiums over district averages.

An example was the sale of a 22,000 hectare (54,363 acre) holding in the Adavale-Quilpie district.

"While the full property details are confidential at this time, the recent transaction shows a 19 per cent increase in value over a 14-month period," Mr Neill said.

It was highlighted that no improvements were undertaken to the property during this time.

The aggregation of Wyuna and Neverfail in the Eulo district west of Cunnamulla recently sold for $2.42 million ($76/ha), which represents a 120pc increase in value over the previous sale in 2015.

Significant fencing, water and internal road improvements had been made to that 31,745ha (78,445 acre) property.

An off-market transaction in the Goondiwindi district also shows strong value growth, he said. The broadacre farming property, Manus, recently changed hands for about $10m or $3960/ha.

The sale of Manus set a new benchmark value for brigalow and belah dryland farming country in the area, he said.

Mr Neill said the market appeared to be favouring sellers at the moment. However, there was an emergence of increased listings in some areas, in particular the Maranoa region.

"This may stymie current levels of value growth until this supply is absorbed," he said.

MORE READING: 'Harris's Pampas 'black gold' on the market'.

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