Demand soars for rural property in southern Australia: HTW
The rural property market in south west Victoria and south east South Australia has now hit its straps according to analyst firm Herron Todd White who say the past 12 months has seen a significant increase in demand from both graziers and cropping operators following a good 2016 season.
According to HTW 2016 experienced high crop yields and good pasture growth across most areas which has resulted in a large number of transactions at increasing value levels.
"The continued, although lower stock prices have provided confidence for graziers and cropping operators to search for economies of scale but have the makings of a good season in 2017 as they sow their crops," HTW said.
"Supply of good quality property stock remains tight and many properties are changing hands prior to hitting the market.
"The short supply in most areas is resulting in rapidly increasing land values in some regions especially around areas such as the Wimmera and Lake Bolac.
"Corporate activity continues following the 2016 sales of Banongil, Mount Fyans, Coonawarra Fresh Produce, Camperdown Dairies and Kaladbro Station to name a few.
"The above sales totalling more than $130 million in transactions which has not been seen since the boom of the timber industry through the early 2000s. We expect that this corporate activity will continue over the next 12 months.
"Cool climate wine grapes in the Coonawarra, Great Western and Pyrenees are starting to display resurgence with improving market confidence and a small number of transactions occurring including the sale of Rymill’s Winery in late 2016 to a Chinese investor.
"A steady increase in demand and pricing of cool climate vineyards is expected in the medium term.
"Dairy activity remains subdued following the 2016 milk price cuts and farmers have concentrated on cost cutting, although a sign of relief was experienced following Fonterra’s recent announcement of a forecast $6.00/kgMS farm gate milk price.
"This market is likely to remain subdued for the short term as market demand and supply fundamentals remain unchanged."
A 535 acre dairy farm in Simpson, Victoria (above), is on the market for $3.2 million. The property features 3 titles and 2 good quality 4 bedroom homes.
