RESULTS of property sales in the wine and forestry sectors will help determine the extent of any rebound in the value of rural land, according to agents.
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Australia's agricultural property sector is beginning to rebound on good seasonal conditions and firm commodity prices, according to Colliers International's market indicators report, but the two sectors most troubled by the disreputable managed investment schemes (MIS) could curtail the sector's comeback, The Australian Financial Review reports.
"The reality is that the forestry and wine sectors are still struggling," Colliers rural and agribusiness executive Tim Altschwager said. "Most of the major MIS companies have collapsed and there are still some distressed assets coming to the market from the wine sector."
Early next month, expressions of interest will close on 1500 hectares of planted vines from the failed MIS company Great Southern. The vineyards and a string of others out of the Foster's and Constellation companies are scattered throughout the Murray-Darling basin where planned water cutbacks could make production difficult.
In forestry, Great Southern's 269,000 hectares of land in Western Australia and across the "green triangle" region of south-eastern Australia are being quietly bid on. The plantations were originally valued at $725 million, or more than $2600 a hectare, but they may have dropped by about 15 per cent.
