Rain, low interest rates seeding busy northern Queensland rural property market: HTW
Unseasonal rain this year may have led to an unusual number of sale contracts and negotiations under way for this time of year, according to Herron Todd White's (HTW) November rural report.
HTW said there are about 10 contracts of sale in the northern Queensland marketplace at present.
"The normal marketing and selling period is after the wet from April to June," HTW said.
"This year saw limited market activity during this period and things were looking bleak.
"Now that some rain has fallen in winter, things have stepped up a gear and total sales volumes for the year are expected to be within a healthy range from 20 to 25 cattle stations.
Many of the details of transactions are confidential at this stage.
"From an independent view point, the sale prices are sensible when duly considered and do not represent an increase in values from last year," the report said.
"There are some areas where sale value rates this year are showing that they have recovered to the pre-drought levels. They are certainly not above the pre-drought levels though.
"Up until recently, the strong cattle market has been good for vendors and has enabled businesses to do some good cattle trades and re-generate cash ow after three very lean years. This has enabled some prospective vendors to pay their bills while they market their stations. Perhaps with the cattle market coming off a bit lately, property buyers will remain cautious in their due diligence.
"Apart from the rain, a good thing for the property market is the low interest rate environment. This would be attractive for some buyers and also positive for existing owners.
"At this stage, the recovery in values to pre drought levels is looking good for the district to the north of Richmond, Julia Creek, Cloncurry and Camooweal up to the Gulf. The other area that is showing signs of value rate recovery is from Hughenden to Muttaburra and back up to Prairie."
