Rural Gippsland sees moderate growth: HTW Rural

Victoria’s Gippsland region has only seen moderate growth in land prices in comparison to the remainder of the state.

According to valuation firm Herron Todd White’s latest rural report, this is a result of consecutive poor seasons, including recent bushfires, drought and now COVID-19.

However, the supply of property on the market has been steady in 2020, wrote HTW’s Angus Shaw.

“Irrigation areas such as the Macalister Irrigation District have continued to show their strength with relatively balanced supply and a continued strengthening in demand from both dairy and vegetable growers.”

This can be seen in recent sales, such as 160ha irrigated dairy property Roonsleigh at Tinamba, which sold in excess of $25,000 per hectare inclusive of water.

Other recent sales include two sales of grazing country at Boisdale, suitable for vegetable production, which both sold at auction for in excess of $30,000 per hectare.

According to the report, approximately 70 per cent of dairy operators are expecting a profitable and above five year average return this season.

“The decreasing input costs of hay and grain, improved seasonal conditions and relatively strong milk prices this season have led to significantly improved confidence in the local dairy sector.”

Evidence suggests that the COVID-19 pandemic is having little impact on the majority of rural markets, although drought and bushfire have softened the demand for some grazing properties.