Summer warms up farm prices

24 Mar, 2014 04:30 AM
Volumes for properties over 40 hectares dropped in every State across Australia in 2013

RURAL real estate volumes across Australia have slipped, but prices are crawling slowly back up in most states, according to Landmark Harcourts' quarterly benchmark report.

With good summer seasons in South Australia and parts of NSW, vendors hold strong prospects for a rebound in 2014.

Landmark Harcourts and Australian Property Monitors show that volumes for properties over 40 hectares dropped in every State across Australia in 2013, except for a marginal increase in Queensland.

In NSW prices slipped 1.6 per cent but increased for all rural properties under 40 hectares.

Col Medway, of Landmark Harcourts Yass, said the decline in sales volumes was due to a lack of stock, not a lack of buyers.

"While the north of the State has been on edge, in the south where there has been a quick turnaround in the season, there will be plenty of properties that come onto the market this autumn that would otherwise have [been] held over to the spring," Mr Medway said.

In South Australia, where prices for farms more than 40 hectares were down 6.7 per cent, region real estate manager Simon McIntyre said a rebound in productivity from wheat farms would drive property growth.

He said the five-year average for wheat plantation areas in the state was exceeded in the recent season, and there was a much higher level of yield.

"The outcome from such a good season is the expectation that the market will see increased demand for rural holdings.

"Some of the interest for grazing property here is actually coming from the croppers who are looking to diversify their holdings."

He has the 21,000-hectare Wallerberdina sheep station north of Port Augustus coming up for auction this Wednesday, and expects some cropping farmers might make a bid of between $1.6 million and $1.8 million.

In Queensland, the only state to see increased sales volumes, prices were down 9 per cent, reflecting more realistic vendor expectations.

In Western Australia volumes were down and prices were up 30 per cent from a very low base, after crashing during the drought in recent years. Victorian volumes were down but prices there were up 4.5 per cent.

In Tasmania Landmark Harcourts director Michael Warren sold Lennonville, a cherry orchard, to a Chinese group last year for $5.5 million.

He said that although sales were down last year, activity has picked up again.

"Since the federal election there has been a lot more happening," Mr Warren said. He has a 2500-hectare cattle property, Westmore, up for sale, with expectations of $12 million.

In the Northern Territory Landmark's data is not as fully encompassing, however there are already signs of activity. Jumbuck Pastoral reportedly purchased the iconic Northern Territory Killarney Station last week for more than $35 million.

Date: Newest first | Oldest first


24/03/2014 6:44:09 AM

Prices up 30% in WA -WHO,s KIDDING WHO ??
talk it up
24/03/2014 9:57:40 AM

fox and henhouse?


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