Mildura

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<div>The Sunraysia property market has continued to show strong sale volumes and prices despite the COVID-19 pandemic, <span>according to<span> </span></span><span>the November report from valuation firm Herron Todd White</span><span>.</span>
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<span class="markqjav4a2n5" data-markjs="true" data-ogac="" data-ogab="" data-ogsc="" data-ogsb="">HTW</span> found that the majority of sales continue to be properties around the median sale price of $315,000 with very few listings over $750,000 being offered to the market.</div>
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<div>Although house prices have continued to steadily rise, sales over $750,000 are infrequent in the local market, however with rising building costs and an expectation that interest rates will remain low, <span class="markqjav4a2n5" data-markjs="true" data-ogac="" data-ogab="" data-ogsc="" data-ogsb="">HTW</span> anticipate that sales over this price point will become more common.</div>
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<div><span>"The majority of residential sales over $1 million involve properties that have direct frontage to the New South Wales side of the Murray River in the townships of Gol Gol and Buronga, with only the occasional sale on the Victorian side of the border reaching these levels," according to Jake Garraway a <span class="markqjav4a2n5" data-markjs="true" data-ogac="" data-ogab="" data-ogsc="" data-ogsb="">HTW</span> Residential Valuation Manager.</span></div>
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<div><span>"A sign of the currently strong demand is the sale last month of 73 Billabong Road, Nichols Point, which achieved a sale price of $1.345 million at auction, the highest sale price within the region on the Victorian side of the border since the sale of 10 Wingillie Street, Mildura for $1.5 million in 2015."</span></div>
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<div><span>"Although heavily influenced by the property’s proximity to the river, with only a narrow strip of Crown land separating it from the Murray River, the sale of 73 Billiabong Road, Nichols Point indicates that buyers are still willing to spend in this high end of the market," Mr Garraway concluded.</span></div>
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Mildura prestige market showed strong results despite COVID-19: HTW

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<p>The Mildura region has yet to see a reduction in local buyer demand, but sales volumes are expected to stay low for the next few months, according to the latest rural report from valuation firm Herron Todd White.</p>
<p>Rural industries will most likely wait to see what the medium-term outlook will be on the operation of domestic and export markets, say HTW’s Shane Noonan and Graeme Whyte.</p>
<p><span>“While Australian agriculture appears to be weathering the COVID-19 period, the main concern is how quickly the global and national economies will recover from the pandemic.”</span></p>
<p><span>The long-term continuation of border closures or travel restrictions may have some detrimental impact on sale activity and value levels.</span></p>
<p><span>A farming family of Victoria’s Wimmera region recently purchased a grazing holding just over the border in South Australia but are now unable to enter the state and access their property.</span></p>
<p><span>According to the report, positive seasonal conditions and forecasts in the Murray Darling Basin are likely to see the temporary water market remain around current levels in the short term.</span></p>
<p><span>Recent sales in the region include an 82 ha table grape property in the Euston area and a large dryland cropping holding northeast of Mildura.</span></p>
<p><span>Each of these sales show rates per hectare above pre-COVID-19 levels.</span></p>
<p>The full Herron Todd White 'Month-in-Review' for September can be read <a href="https://static.htw.com.au/HTW-month-in-review-September-2020-Rural.pdf">here</a>.</p>
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Mildura rural property weathers the storm of COVID-19: HTW Rural

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<p>Mildura’s official population growth - estimated to be approximately one percent per annum - appears to come from a variety of sources, according to a recent report from valuation firm Herron Todd White.</p>
<p>“There has always been a steady migration of people from surrounding towns and rural areas to Mildura, attracted by work opportunities and the amenities that our relatively large regional centre provides,” the March report found.</p>
<p>“Most of the people moving to Mildura do so with the intention of buying a house and this has contributed to strong demand for better quality family homes in the $350,000 to $500,000 price bracket. The growth in this segment has been reflected by strong demand for land in new subdivisions, which we expect will continue.”</p>
<p>The report also found, however, that there are a significant number of retirees moving to Mildura, which when combined with a general increase in life expectancy is contributing to an ageing population.</p>
<p>“Older buyers tend to be attracted to modern homes on smaller land parcels, which has contributed to a rise in the number of smaller townhouse type developments closer to the CBD.”</p>
<p>“The houses they replace were usually old and poorly designed and so this rejuvenation has been viewed positively.”</p>
<p>Over the past ten years, there has been a rapid expansion in the area of labour-intensive horticultural crops grown in the Mildura region, particularly table grapes.</p>
<p>This growth has drawn a large number of casual workers who then find accommodation wherever they can, contributing to a shortage of cheaper rental accommodation options.</p>
<p>“Accessing loans to buy homes will not be an option for many of these seasonal workers, who are then reliant on being able to access affordable rental properties,” the report concluded.</p>
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Mildura's growing population coming from a range of sources; Herron Todd White

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<p>Farmer confidence levels are remaining relatively high, even though the rest of the economy is feeling the effects of Covid related uncertainty, according to the latest report from valuation firm Herron Todd White.</p>
<p>There are still some rural sales occurring, and there does not appear to be any initial signs of any reduction in value.</p>
<p>However, agents are reporting that the tighter border restrictions are limiting the ability of corporate buyers to inspect and do their due diligence. While the internet can provide a good overall sense of a property, buyers still want to ‘kick the dirt’. We are aware of at least one case where this inability to cross borders is holding up a sale negotiation.</p>
<p>This restriction is exacerbated when international buyers are involved, and it is currently difficult to see how any international travel will be possible in the next 18 months. Meanwhile the reduction in the Foreign Investment Review Board (FIRB) threshold down to $0 caught many by surprise.</p>
<p>There is a significant cost and also time delays involved with navigating FIRB requirements, and this cost becomes more significant as the property value reduces. We are also aware of a one case where the change has delayed a sale.</p>
<p>Whilst we are aware of a number of sales which have been negotiated in the ‘Covid-19’ period across a number of industries, we are not at liberty to disclose finite details as yet until such sales are finalised and settled.</p>
<p>A table grape sale in the Robinvale area, a small citrus orchard in the Nangiloc area and a dried fruit property within the Mildura Irrigation area suggest that value levels have remained firm at pre-Covid levels.</p>
<p>We are also aware of a large dryland cropping holding which has transacted (not settled) to the north-east of Mildura in New south Wales which will show levels slightly firmer than pre-Covid values.</p>
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Sales suggest values remain at pre-coronavirus levels in Mildura: HTW

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<p>The Mildura local market continues to show some uncertainty with many agents still reporting reluctance by many vendors to put their homes on the market, according to the July Herron Todd White (HTW) residential report. </p>
<p>The valuation firm took a look at how a budget of $700,000 could be invested in property markets across the nation.</p>
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<p><span>"This is more evident in the higher value range due to concerns that buyers may not yet be willing to pay a substantial amount in this time of uncertainty. </span>Sales that are occurring indicate that values have held up well so far," the valuation firm said. </p>
<p><span>The report notes within the local market, $700,000 is still considered a higher value range property, however as the local market has increased steadily over recent times, this amount has started to become more common. </span></p>
<p><span>"$700,000 will purchase a large home located in an inner-city location in Mildura, or an above average standard dwelling in a modern subdivision on an allotment of up to 1,000 square metres. </span></p>
<p><span>"Within the inner city, it is possible at this price point to find an older, extensively renovated dwelling in a preferred location," the valuation firm said. </span></p>
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<p>The report suggests a recent example is <a href="https://www.realestate.com.au/sold/property-house-vic-mildura-132272454" target="_blank">26 Walnut Avenue, Mildura </a>(pictured below), which sold in January 2020 for $680,000.</p>
<p><span> This property is in an inner-city location and includes an older home which has been recently renovated to a high standard and includes a pool.</span></p>
<p><span> <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/8/14/mildura%201.jpg" alt=""></span></p>
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<p><span>Surrounding Mildura are a number of well- regarded smaller towns such as Gol Gol, Nichols Point and Irymple, which include good quality homes on larger allotments ranging from 2,000 to 6,000 square metres. </span></p>
<p><span>For around $700,000 it is possible to find modern homes built within the last ten to 15 years which include good ancillary improvements such as sheds, pools and extensive landscaping, the report noted. </span></p>
<p><span>Buyers at this price point tend to prefer locations that are within a ten-minute drive of Mildura and which are connected to filtered town water.</span></p>
<p><span>The report suggests a recent example is 297 Irymple Avenue, Nichols Point (pictured below), which sold in December 2019 for $716,000.</span></p>
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<p><span>This property comprises a 2,576 square metre allotment improved with a circa 2005 built brick home featuring a pool, large shed and significant landscaping.</span></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/8/14/nichols%20point.jpg" alt=""></p>
<p>These higher value homes are suited to owner- occupiers as investors chase higher rental returns at a lower price point. </p>
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<p><span>"For investors, our advice would be to purchase two smaller, but still modern dwellings for $350,000 each, three older dwellings in secondary locations for $200,000 each or even a large block of flats (however there are few such blocks of flats at this price point).</span></p>
<p><span>"All of these would provide a more attractive return, of around five to seven per cent as opposed to a high-quality single dwelling. Mildura’s vacancy rates are still very low, meaning that finding tenants is generally straightforward," the valuation firm said. </span></p>
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What a lazy $700,000 can buy in Mildura: HTW residential 

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<p><span>The developing Covid-19 virus has coincided with the breaking of the drought in the Mildura region and has injected much needed confidence into the dryland farming and grazing sector, according to the June Herron Todd White (HTW) rural report. </span></p>
<p><span>The valuation firm looked at the influence of trade wars, pandemic outcomes and commodity prices on the rural sector, and provided an update of how rural real estate is performing across locations and industries. </span></p>
<p>A recent discussion with a Millewa (west of Mildura) farmer reports that for the two years up to 31 December 2019 only 157mm of rain was recorded.</p>
<p>In the past 3 months of 2020 they have received over 160mm which has provided an optimum autumn break with the majority of crops now planted.</p>
<p>The long range forecasts suggesting above average rainfall for the region has also given producers the hope of a very good season, the report noted. </p>
<p><span>Since January there has been renewed interest in Millewa land which for the past five years has pretty much remained stagnant in regard to value. </span></p>
<p><span>The report notes five properties have been sold/contracted over the past 4-5 months (all to ‘outside’ purchasers) with value levels 10 to 20 per cent above previous levels achieved in the past two years.</span></p>
<p><span>Marketing of the 2020 table grape crop has been affected by the Covid -19 pandemic, with supply chain and logistics disruptions into most of our export markets. </span>This ultimately resulted in reduced price levels at the back end of the harvest, and also an oversupply in our domestic market," the valuation firm said. </p>
<p><span>The growth in recent years of direct purchase </span>agreements between supermarkets and some larger growers has provided these growers with some greater certainty in the disposal of fruit onto the domestic scene.</p>
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<p><span>"We are aware of one significant table grape property recently being contracted for sale at levels slightly firmer than indicated by previous sales, which suggests there is long term confidence in the industry and that Covid-19 has not had any immediate effect on buyer demand," the valuation firm said. </span></p>
<p><span>The citrus harvest has commenced in this region with high hopes of another good season. Early reports suggest that fruit quality and size is superior to 2019 however yields are likely to be slightly down.</span></p>
<p><span> Initial early season pricing indicates firm levels of between $750 and $1000 per tonne for premium early navel varieties. The main concerns facing the industry revolve around the political tension with China, particularly if China was to ‘shut its door’ on Australian fruit, the report says. </span></p>
<p><span>However, the industry is hopeful that there is sufficient demand from other countries to absorb our supply albeit </span>at a likely reduced price.</p>
<p>"With a change in market direction it also brings the concern of foreign agents reneging on orders or payments," the valuation firm said. </p>
<p>The report notes other concerns include sourcing a suitable labour force (heavily dependent on overseas backpackers and islanders) and the lack of information on whether there will be enough available containers and ships to actually move the fruit.</p>
<p><span>The weaker AUD remains a competitive advantage for exporters and the removal of tariffs on a large proportion of Australian goods is also viewed positively for the Agri sector. </span></p>
<p><span>However, the sector </span>is not without its concerns with changing global macroeconomic conditions, including the recent Chinese tariff reviews on barley and the banning of products from certain meatworks is causing concern for future export arrangements.</p>
<p>In addition the Australian Wool Exchange Eastern Market Indicator index has fallen almost 25 per cent since January 2020 due mainly to the Coronavirus shutdowns of most export countries.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/7/6/merbein%201.jpg" alt=""></p>
<p>A current listing is a 8 <span>hectare </span>vineyard in Merbein priced at $410,000 - $440,000.</p>
<p>The property at Block 97 Sixth Street (pictured above) features underline sprinkler irrigation and electric motor with fertigation. </p>
<p>It has been planted to 4.2 hectare Sunmuscat, 2.4 <span>hectare</span> Sultana and 0.8 <span>hectare</span> Sugra. </p>
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<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/7/6/merbein%201.jpg" alt=""></span></p>
<p><span>A 1,082 hectare cropping property in Meringue was sold for $965,675 in March. </span></p>
<p>The 584 Ruchel Road property (pictured above) include a 1950s homestead, separate bungalow, elevated red loam soils and open front machinery shed.</p>
<p><span>The property has a history of growing wheat, peas, lentils and livestock.  </span></p>
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Mildura rural market faced with changing global macroeconomic conditions: HTW rural 

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<p>The effects of COVID-19 on Mildura housing market are mostly limited at this stage to reduced sales volumes, as vendors and purchasers take time to weigh up the implications, according to the latest Herron Todd White (HTW) residential report. </p>
<p><span>The valuation firm suggests in locations across the nation, the downtime delivered by isolation has spurned on owners looking to improve their assets through maintenance and upgrade. This month’s HTW report highlights where renovations are on the rise and the price points and outcomes those markets can expect.</span></p>
<p><span>"As we move through another month of COVID-19, there is a feeling that, in our region at least, we have mostly escaped the virus itself. There were a handful of cases identified in April, but none </span>in the past month and our community can see a path back towards a more normal life.</p>
<p>"However our economy has been detrimentally affected, with a rise in unemployment resulting from the shut down of many businesses, especially those that rely on tourism or hospitality," the valuation firm said. </p>
<p><span>The HTW report notes the effects have been most evident at the middle and upper end of the market. Agents have welcomed a return to being able to hold open inspections, which they hope will provide greater activity and confidence, however it is still too early to know what the lasting effects will be.</span></p>
<p><span>Local builders still report being busy completing work that started pre-COVID-19, and a drive around our new subdivisions shows that new construction is underway, however it is expected that the number of new builds will be reduced to some degree over the next 12 months as some people re- think their ability to take on debt at this time.</span></p>
<p><span>"There is no doubt that many people have had more free time, either through reduced employment or less recreation options on weekends. For many, this time has been devoted to some DIY maintenance in and around their homes. The Bunnings carpark test suggests that home improvement sales have been strong," the valuation firm said. </span></p>
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<p><span>Renovating older homes for a profit has not been a common activity in Mildura, in part due to a lack of older homes with enough character to be popular with owner-occupiers.</span></p>
<p><span>"We simply don’t have the stock of pre 1950s homes. There are some scattered examples though and these are usually found in preferred positions on Mildura’s west side or close to the CBD and Murray River," the valuation firm said. </span></p>
<p><span>There is considered to be good potential to renovate homes built in the 1950s and 1960s. These homes are usually conite clad, which was a building technique popular in Mildura, but rarely found elsewhere, the report noted. </span></p>
<p><span>Many examples have reasonably large rooms and the ability to extend in a complementary way.</span></p>
<p><span>A well renovated home from this era will fetch similar values to new homes built in a new subdivision, but comes with the benefit of larger land size and superior position.</span></p>
<p><span>A current listing is a 1950s weatherboard home in Mildura priced at $260,000 to $285,000.</span></p>
<p>The three bedroom, one bathroom house is situated at <a href="https://www.realestate.com.au/property-house-vic-mildura-133788118" target="_blank">817-819 Fourteenth Street</a> (pictured below).</p>
<p>It features original kitchen, formal lounge, and open fire place. </p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/6/22/mildura%201.jpg" alt=""></p>
<p><span>For those after a less expensive challenge, there is also the potential to modernise homes built in the 1980s. </span>This is considered a good option for owner-occupiers.</p>
<p>With many local tradespeople and suppliers of floor coverings, kitchen cabinetry etc. less busy at present, now may be a good time to do this upgrading, the report noted. </p>
<p>A renovated weatherboard family home in Irymple has recently been sold for $535,000.</p>
<p>The country homestead at 3538 Benetook Avenue (pictured below) comes with four bedrooms, study, central kitchen, two bathrooms and decked entertaining area. </p>
<p>It is situated close to Irymple and Mildura's shopping precincts. </p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/6/22/irymple%201.jpg" alt=""></p>
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Mildura home improvement sales remain strong: HTW residential 

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<p><span>The Sunraysia market is driven by a number of influences, particularly local population growth, employment prospects and interest rates, according to a recent Herron Todd White (HTW) residential report. </span></p>
<div><span>The current COVID-19 epidemic is going to have a negative impact on key drivers, so it will be interesting to see what impact this may have on the property market in the short to medium term, the valuation firm said.</span></div>
<p><span>The HTW report suggests the availability of credit also affects the number of buyers.</span></p>
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<p><span>"Our key horticultural industries have been one of the main drivers of local economic activity. Growers have been busy developing new plantings of table grapes, citrus and almonds, which has had a significant flow on effect through our economy. Our local service and industrial industries have benefited from the stronger confidence," the valuation firm said. </span></p>
<p>"Investors are generally purchasing lower priced properties due to high rental yields and an attractive entry point into the market." </p>
<p>These include older dwellings that have yet to receive any significant recent renovations as well as units that are low maintenance and provide an investor with high rental yields.</p>
<p>A four bedroom house situated close to Mildura CBD was sold for $290,000 in April.</p>
<p>The <a href="https://www.realestate.com.au/sold/property-house-vic-mildura-133248886" target="_blank">2 River Parade</a> home (pictured below) comes with spacious lounge, fully appointed kitchen with adjoining meals area, and rear yard.</p>
<p><span>The rear yard allows for an extension or landscaped gardens. </span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/5/11/mildura%20.jpg" alt=""></span></p>
<p><span>Higher priced properties are predominantly purchased by upgraders as well as people downsizing from out of town into large, high end homes but usually with a smaller, easier to maintain allotment.</span></p>
<p><span>A resort-inspired family home in Nichols Point was sold for $900,000 in March. </span></p>
<p>The <a href="https://www.realestate.com.au/sold/property-house-vic-nichols+point-133036758" target="_blank">2 Forrester Court</a> house (pictured below) comes with four bedrooms, gourmet kitchen, vast living spaces, and triple garage. </p>
<p><span>It also features fames room, theatre room, heated pool and tennis court. </span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/5/11/nichols%20point%201.jpg" alt=""></span></p>
<p><span>"The stronger rural land values over the past three to four years have allowed many retired farmers to be able to afford better standard homes in their retirement than was previously the case," the valuation firm said. </span></p>
<div><span style="text-decoration: underline;"><em>Note regards COVID-19</em></span></div>
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<span><em>This edition of Month In Review had its topic defined in late February with submissions from our offices collated through to late March. During this period, shifts in the social and economic landscape due to COVID-19 became increasingly dramatic, as demonstrated by the varied information provided by offices over the course of three weeks.</em></span><em><br></em>
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<div><span><em>This month’s residential theme on baseline property market drivers remains a common thread, and provides an indication of what influences to monitor as the property sector recovers post-crisis.</em></span></div>
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Mildura property buyers affected by availability of credit: HTW residential 

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<p>Property values in the Mildura region are remaining relatively steady, with the agricultural sector appearing mostly insulated from the contemporary economic downturn, according to the latest rural report from valuation firm Herron Todd White.</p>
<p>“The huge amount of uncertainty resulting from the outbreak is still likely to stall some property sale negotiations, however the fundamentals for food production remain sound and we expect that sales will eventually resume and that the impact on values will be less than for other property sectors,” the report found.</p>
<p>The 15 percent slide in the exchange rate, to current levels of around US $0.57, is expected to help maintain export returns for the local horticultural economy, despite predictions that there may be issues around accessing key markets.</p>
<p>“We note that domestic market prices have risen in some cases due to concerns about shortages of supply,” the firm continued.</p>
<p>“An issue for some of our labour intensive industries (think manual harvest of table grapes and citrus) will be the availability of casual labour.”</p>
<p>Many growers in the region rely on sourcing itinerant workers from the Pacific region or south-east Asian countries, and this will be reduced due to the pandemic.</p>
<p>The report found that the regional almond industry will face challenges as a result of the destruction of a huge number of bee hives during the summer fires.</p>
<p>“Almonds rely on bees for pollination and the simple economic theory of supply and demand will see the cost rise significantly.”</p>
<p><a href="https://static.htw.com.au/HTW-month-in-review-April-2020-Rural.pdf">T</a>he full 'Month-in-Review' Herron Todd White report for April 2020 can be found <a href="https://static.htw.com.au/HTW-month-in-review-April-2020-Rural.pdf" target="_blank">here.</a></p>
<p>The full Herron Todd White 'Month-in-Review' for April can be read<a href="https://static.htw.com.au/HTW-month-in-review-April-2020-Rural.pdf" target="_blank"> here.</a></p>
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<p><em>Note regarding COVID-19:</em></p>
<p> </p>
<p><em>This edition of Month In Review had its topic defined in late February with submissions from our offices collated through to late March. During this period, shifts in the social and economic landscape due to COVID-19 became increasingly dramatic, as demonstrated by the varied information provided by offices over the course of three weeks.</em></p>
<p> </p>
<p><em>This month’s residential theme on baseline property market drivers remains a common thread, and provides an indication of what influences to monitor as the property sector recovers post-crisis.</em></p>
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Mildura region holding value thanks to resilient agricultural sector:  HTW rural

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<p>The overriding issue in 2020 in the horticultural sector in Mildura will continue to be the availability of irrigation water, according to the recent Herron Todd White (HTW) rural report. </p>
<p>The property valuation firm suggests that there will be a widening gap between the balance sheets of irrigators who hold significant water entitlements and those who do not. </p>
<p>The report was issued in early February before the heavy rains across some of NSW.</p>
<p>"Catchment dam levels have been gradually lowering since the start of 2017 and substantial rainfall is required to replenish supply", HTW reports.</p>
<p>Most irrigators have been able to provide for reduced allocations in the current water year through a combination of carry over and leasing water. </p>
<p>However, the cost of doing this for another year will be tough for most producers. There is also uncertainty surround whether there will be enough available water to keep all the crops fully irrigated. </p>
<p>The volume of water required to irrigate permanent horticulture crops in the region is 550 Gigalitres (GL) per annum, according to data from the Murray Darling Basin Authority.</p>
<p>"Of this, around 180 GL will hopefully once again be available from New South Wales Murray High Security Water Licences.</p>
<p>"The remaining 370 GL will need to be found primarily from Victorian allocations and so an allocation in the 2020/21 year of at least 35 per cent for Victoria Murray Zone 7 Water Shares will be required to meet this need. </p>
<p>"The final picture will depend on the ability to transfer water between the Murrumbidgee, Goulburn and Murray River systems, with the restrictions on inter-valley trade during the past six months exacerbating the current shortage of water in the region."</p>
<p>The HTW rural report anticipates that some producers will inevitably elect to dry off their less profitable crops in 2020, such as white wine grapes, Valencia organs and dried vine fruits and also bring forward the decision to clear order, less productive plantings of other crops. </p>
<p>HTW also expects a deferral of further expansion plans. </p>
<p>This will have an impact on contractors, nurseries and irrigation design and supply businesses which all have enjoyed a period of strong activity during the past four years. </p>
<p>The dried fruits industry will be vulnerable in the event of a reduced area of plantings.</p>
<p>In Mildura, there are currently three dried fruit processors, and the industry will be conscious of the production forecasts for 2021 to see whether there will be sufficient water to keep three processors going. </p>
<p>Consequently, it appears that values of all horticultural property will plateau as growers take a wait and see approach. However, HTW doesn't expect to see a significant decline in values during 2020. </p>
<p>The report suggests that commodity prices for many of the region's crops will remain high, which makes leasing water at current levels of over $800 per megalith economically feasible for some.</p>
<p>"Farmers tend to retire at a time of their choosing" so it is expected that "people will try to ride out the current drought rather than seen at a time of reduced demand. </p>
<p>Unfortunately, the smaller, less efficient growers, particularly those who rely entirely on leasing water, will be vulnerable should dry conditions continue throughout 2020. </p>
<p>"There are a number of reviews currently occurring into water trade and river management and while everyone hopes that this will result in improved transparency in water ownership and the trading platform, it is unlikely that we will see recommendations that will contribute to any significant reduction in the cost of leasing water."</p>
<p>"The cost will again be entirely governed by the supply of water, in particular whether New South Wales Murray and Murrumbidgee General Security Water Licences receive any allocation." </p>
<p>Dryland farming success will also be dependent on rainfall leading up to the optimal sowing period in April and May.</p>
<p>"Producers were able to tap into stored soil moisture to grow a crop in 2019, however soils are bone dry at present." </p>
<p>"Values of farming properties in the Mallee region have been increasing in recent years, however we expect that buyers will be cautious until the season improves."</p>
<p>Dryland farmers in the Mallee realise that they rarely benefit from years of both high yields and high grain prices and that a good season will inevitably coincide with an easing in grain prices.</p>
<p>Meat prices are expected to remain high for several years.</p>
<p>HTW reports that livestock producers in the Western Division are all optimistic about the future of their industry despite feed stays critically short, or even non-existent on some properties.</p>
<p>"All evidence suggests property values will remain firm in Mildura, in part due to an expectation that only limited number of properties will be offered for sale until the drought breaks."</p>
<p> </p>
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