Listings increase post winter plantings in Darling Downs: HTW
Southern Queensland's Darling Downs region has seen an increase in auction listings in late June to mid July following the winter plantings, according to analyst firm Herron Todd White.
HTW said due to the local region now entering the mid-season selling period a lull in the market will pop up albeit normally on a temporary basis.
"Given this, we do note that there has been an increase in listings in the region, with some set down for auction in late June to mid-July after winter plantings have occurred," HTW said.
"It will only be at that point that we will really be able to determine if the broader market has the appetite for further investment going forward.
"Testing this appetite, within the highly regarded salad bowl region to the south east of Cunnamulla, we note that the holdings of Clover Downs (125,288 hectares) and Noorama (105,000 hectares) together with an aggregation of another eight holdings comprising a total area of 127,192 hectares have all recently come onto the market under expressions of interest campaigns.
"All three are managed by different agencies and it will be interesting to see the individual (or collective) approaches taken by those relevant agencies in order to achieve a sale within a reasonable period of time.
"Together with a further two nearby smaller holdings (Camden comprising 32,448 hectares adjoining Clover Downs and Robina Downs to the south comprising 13,780 hectares) the total amount of country now on the market in the region is in excess of 400,000 hectares or one million acres.
"There is the potential that a new corporate could see an opportunity to secure a large chunk of some of the best country in the region. Whether there is the appetite for such an approach is yet to be seen.
"The wool industry has remained quite resilient, however offsetting this is the ongoing problem of kangaroo and wild dog build ups.
"As valuers, we always refer to the depth of the market and the impacts on the value of a particular holding or group of holdings within a region.
"The scenario that has now emerged involving such a volume of country in a relatively small geographical region will surely test that aspect.
"A large number of holdings on the market in a de ned region would normally be expected to raise concerns around industry issues and why there is such an exodus from the region. However two of the major holdings are owned by corporates that for varying reasons have decided to sell their holdings and given this is pure coincidence, we have perhaps witnessed the development of the perfect storm."
A 3349ha Freehold property at nearby Roma, 1444 Glen Arden Road, (above) recently sold, price undisclosed. It features two 4 bedroom homesteads with sheds, workshops and silos as well as bores and dams.
