Viticulture, horticulture property in demand throughout Victoria: HTW
Aside from the traditional cropping and grazing sectors, the increase in interest in viticulture and horticulture assets in south east and western Victoria is continuing, according to Herron Todd White.
A recent report by HTW said local growers looking to expand and corporate buyers seeking investments with higher returns than traditional cropping and grazing assets.
"A recent move of savvy investors away from these traditional regions of focus and toward other now more affordable regions in comparison is starting to emerge," HTW said.
"A great example of this is RIFA’s recent purchase of a circa 4,500 hectare holding near Wycheproof in the north-eastern Wimmera region of Victoria.
"The purchase, although at a premium price for the area at circa $9 million, resulted in a lower cost of production for the purchaser in comparison to buying a similar scale asset in the western districts.
"The rural market in south-east regional Australia and more particularly western Victoria and south-east South Australia continues to out perform many other investment markets in recent months with capital growth in most sectors and regions continuing to provide strong evidence of growth.
"The past twelve months has seen significant focus on the south-west of Victoria from the corporates and the media which has helped to fuel interest in the area and in turn resulted in record land prices and limited available supply of land left in the market.
"The story is similar across the border in South Australia with recent sales displaying 20 percent to 30 percent increases in land values in the past 12 months in some areas, especially around Robe, Penola and Naracoorte."
The property Nurrungar, 661 Range Road Naracoorte is slated for auction late October.
It offers quality pastures on excellent grazing country.
It is for sale by public auction on October 27 at Naracoorte Town Hall through Elders Real Estate's Brian Edwards.
