Rural Market

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<p>Confidence in the Darling Downs region market has been boosted by winter rainfalls, says the latest rural report from valuation firm Herron Todd White.</p>
<p>A good winter crop and strong herd numbers leading into the summer months is expected.</p>
<p>The positive farming conditions follow severe drought in 2018 and 2019 that saw cattle and sheep numbers drop.</p>
<p><span>HTW director Bradley Neill writes: “2020 has provided far better farming conditions and with that has come strong appetites for rural property.”</span></p>
<p><span>According to the report, sale prices continue to exceed pre-sale expectations.</span></p>
<p><span>Numerous transactions show significant price premiums over district averages, driven by private farming families and interstate cattle and sheep producers.</span></p>
<p><span>The recent sale of a 22,000ha holding in the Adavale Quilpie district shows a 19 per cent increase in value over a 14-month period.</span></p>
<p><span>A new benchmark has been set for Brigalow and Belah dryland farming country in the Darling Downs region following the sale of the broadacre farming property, Manus.</span></p>
<p><span><img src="https://www.urban.com.au/images/Screen%20Shot%202020-09-10%20at%2011.09.50%20am.png" alt=""></span></p>
<p><span style="font-size: 12.16px;">The Manus property.</span></p>
<p><span>The land recently changed hands for approximately $10 million, $3,960 per hectare.</span></p>
<p><span>The market is favouring sellers at the moment, who are presenting their properties to the market in conditions not seen for a number of years.</span></p>
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The Darling Downs rural market prices exceed expectations: HTW Rural

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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><span style="font-size: 12.16px;">The Cassowary Coast Regional Council area has seen a continued resurgence of the banana farm market, according to the latest rural report from valuation firm Herron Todd White.</span></p>
<p><span>Since July 2019, approximately 20 per cent of total rural sales over 20 ha comprise sales purchased for conversion to banana production or of going concern banana farms.</span></p>
<p><span>Banana prices have gradually improved since its 2016 low caused by the Panama TR4 banana disease, according to the report.</span></p>
<p><span><img src="https://www.urban.com.au/images/Screen%20Shot%202020-09-10%20at%2011.43.40%20am.png" alt=""></span></p>
<p><span>Recent trends in banana prices in the Brisbane and Melbourne have both increased.</span></p>
<p><span>HTW director Danny Glasson notes 60 sales over 20ha has occurred in the region since July last year.</span></p>
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Cairns region sees the resurgence of the banana farm market: HTW Rural

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<p><span>The Gold Coast region’s rate per hectare for larger land holdings has been improving, according to the latest rural report from valuation firm Herron Todd White.</span></p>
<p><span>This is evident in a recent sale of the Scenic Rim property ‘Wirraway’ which broke a record in the region.</span></p>
<p><span>Originally listed for $20 million before being gutted by fire, the property sold for $8.05 million in July.</span></p>
<p><span>HTW director Janine Rockliff notes the buyer, a couple from western Queensland, own an adjoining 777.92 ha property which they purchased from the Queensland government for a total of $15.6 million.</span></p>
<p><span>This brings their total spend to $23.65 million or $17,602 per hectare gross.</span></p>
<p><span>The property is in close proximity of a number of other large holdings transacted in the past three years, including the 865ha Gorge Farm for $6.15 million and 1,345ha Broadlands property for $19.4 million.</span></p>
<p><span>Purchasers seeking larger holdings and an increased interest in the area has improved the rate per hectare.</span></p>
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The value of large rural land holdings in the Gold Coast is improving: HTW Rural

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<p><span>Positive conditions have instilled a high degree of confidence in the Echuca and Deniliquin regions, according to the valuation firm Herron Todd White’s latest rural report.</span></p>
<p><span>A well above average season in regard to crop and fodder is expected due to most of the area receiving around 100 millimetres of rain throughout autumn, plus good follow-up winter rainfall, says HTW director John Henderson.</span></p>
<p><span>“The overall result of this confidence in the seasonal outlook in the area has translated to a rising market”, Henderson said.</span></p>
<p><span>Some degree of uncertainty about the outlook for commodity prices in the short-term remains.</span></p>
<p><span>The report noted recent sales that showed a $1,000 per hectare rise, including a batch of well-developed irrigation properties close-by the Finley district sold for $5,435 to $6,175 per hectare.</span></p>
<p><span>This is compared to similar properties which sold for $4,570 to $5,065 per hectare in December 2018 to February 2019.</span></p>
<p><span>“The rising market is a feature of most of southwest New South Wales and northern Victoria, with agents reporting strong enquiry in the region.”</span></p>
<p><span>The general outlook for the region is for rural values to continue to rise.</span></p>
<p><span>However, the report notes that uncertainty around key commodity prices may start to influence decision-making in the near future.</span></p>
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Rural values continue to rise in the Echuca and Deniliquin regions: HTW Rural

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<p><span>Victoria’s Gippsland region has only seen moderate growth in land prices in comparison to the remainder of the state.</span></p>
<p><span>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.</span></p>
<p><span>However, the supply of property on the market has been steady in 2020, wrote HTW’s Angus Shaw.</span></p>
<p><span>“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.”</span></p>
<p><span>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.</span></p>
<p><span>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.</span></p>
<p><span>According to the report, approximately 70 per cent of dairy operators are expecting a profitable and above five year average return this season.</span></p>
<p><span>“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.”</span></p>
<p><span>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.</span></p>
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Rural Gippsland sees moderate growth: HTW Rural

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<p>During the early panic-stricken days of COVID-19 in March, a number of agents in Western Victoria and southwestern South Australia advised of cropping and grazing buyers pulling offers on properties going to tender due to the significant uncertainty surrounding the pandemic, according to the June Herron Todd White (HTW) rural report.</p>
<p>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. </p>
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<p><span>"Weeks on, those offers being pulled from the market really seem immaterial as the properties sold regardless and farmers more generally have gained confidence that they are a required essential service, maybe more so than ever.  </span>They are also probably the least likely to be stopped in their tracks due to social distancing requirements," the valuation firm said.</p>
<p><span>The current depth of demand </span>in the market for cropping and grazing land is significant and demand still far outweighs supply in most areas.</p>
<p>Cropping and grazing farmers in this region have been lucky in recent times to avoid the bushfires and droughts of the recent past and continue to go about their daily business on farm.</p>
<p>Many farmers are currently getting ready to or have already started to sow their winter crops.</p>
<p>The report notes sales remain few and far between due to a limited supply to the market but every sale appears to be setting a new benchmark with cropping country in the Wimmera reaching over $9880 per hectare for smaller parcels and grazing land down south well over $12,350 per hectare.</p>
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<p><span>Labour shortages may be an issue for the more northern fruit picking markets but from all reports, this region appears to be attracting its sons and daughters back to farms from hospitality and associated city lives during this crisis.</span></p>
<p><span>"With reports of daughters driving tractors and kids helping move sheep, ag is looking sexier than ever to some of the younger generation who are starting to appreciate the lucky country we live in," the valuation firm said. </span></p>
<p><span>Some of the more intensive asset classes in this region are having mixed results from the pandemic, the report suggested. </span></p>
<p><span>Vegetable producers in particular and producers supplying the major supermarkets struggled to keep up with demand during the early days of hoarding which resulted in a spike in vegetable prices to the farm gate.</span></p>
<p><span>On the flip side, those exporting produce overseas or selling into premium markets have been hard hit and left with excess produce in some instances. This is especially evident in the wine regions of the Coonawarra and Barossa where wineries, cellar doors and many associated food and tourism businesses have been decimated by the closure of their export or local markets and tourism.</span></p>
<p><span>The report notes the flow on effect to producers is evident. It is these sub-regions and intensive businesses that are generally the source of the largest proportion of employment in these areas.</span></p>
<p><span>"The impacts of the pandemic will likely have a lasting impact on these local economies, however, the Australian ag sector more generally remains incredibly resilient and it will likely take more than this pandemic to keep it down," the valuation firm said. </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/2020/7/13/vic%20valley%201.jpg" alt=""></span></p>
<p><span>A current listing is a lifestyle property nestled in the centre of the Grampian Ranges. </span></p>
<p>The<a href="https://www.realestate.com.au/property-acreage+semi-rural-vic-victoria+valley-132026966" target="_blank"> 2633 Victoria Valley Road, Victoria Valley</a> property (pictured above) has been listed with a price guide of $760,000.</p>
<p><span>Set on near 18ha, the property comprises of a three bedroom residence, airstrip, shearing sheds, aircraft hangar and workshop. </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/2020/7/13/mefeking.jpg" alt=""></span></p>
<p><span>A 32ha lifestyle property set on the foothills of the Grampians National Park has recently been sold for $210,000.</span></p>
<p>The <a href="https://www.realestate.com.au/sold/property-other-vic-mafeking-700076566" target="_blank">145 Regulating Basin Road, Mafeking</a> property (pictured above) features sound boundary fencing, native trees, dam and Grampians views. </p>
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Western Victoria and southeastern South Australia rural markets remain resilient during COVID-19 pandemic: HTW rural 

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<p>An increase in listings across the western Darling Downs, Maranoa and northern New South Wales regions has been observed over the past two months, according to the June Herron Todd White (HTW) residential report. </p>
<p>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. </p>
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<p><span>The report notes agents are reporting that sellers are looking to capitalise on the good bodies of feed now on the ground following years of drought.</span></p>
<p><span>Strong re-stocker demand continues to support high cattle prices, which are underpinning grazing land values.</span></p>
<p><span>"The cattle market remains strong despite the country now haying-off in most areas and should the good rain forecast over the winter fail to eventuate, the body of feed currently available runs the risk of spoiling," the valuation firm said. </span></p>
<p><span>In the Darling Downs region, many farming operators are holding off planting until receiving beneficial rain to provide a full moisture profile.</span></p>
<p><span>As supply increases, there is strong potential for a softening in market sentiment as the pool of potential buyers is absorbed, the report noted. </span></p>
<p><span>The impacts of the barley tariffs and Australian meat export restrictions by the Chinese government may reduce buyer confidence, however these effects may take some time to play out.</span></p>
<p><span>Some recent listings in south-east and south- west Queensland include:</span></p>
<p><span>◗ </span><span>Telco, Roma (pictured below) </span><span>-939.5 hectares-to be auctioned 18 June</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/2020/7/13/roma%202.jpg" alt=""></span></p>
<p><span>◗ </span><span>Dunkery, Condamine</span><span>-2944 hectares-to be auctioned 11 June</span></p>
<p><span>◗ </span><span>Spring Grove, Roma</span><span>-2496 hectares-to be auctioned 2 July</span></p>
<p><span>◗ </span><span>Wattlevale, Moonie</span><span>-3138 hectares-EOI</span></p>
<p><span>◗ </span><span>Lesdale, Charleville</span><span>-14,827 hectares-EOI </span><span>◗ </span><span>Murilla, Meandarra</span><span>-7655 hectares-EOI</span></p>
<p>◗  Nungil, Charleville-14,524 hectares–to be auctioned 17 June</p>
<p>◗  Tomoo, Mungallala-18,215 hectares-private treaty after being removed from auction terms</p>
<p>◗  Mundibulanga, Drillham-2678 hectares-EOI</p>
<p>◗  New Cashmere, St George-4458 hectares-EOI</p>
<p>◗  Greenoaks, Mitchell-5100 hectares–auction held 22 May</p>
<p>◗  Yambutta, Quilpie-41,083 hectares–to be auctioned 13 July</p>
<p>◗  Whyenbirra, Bollon (pictured below)-14,358 hectares-to be auctioned 18 June</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/2020/7/13/bollon.jpg" alt=""></p>
<p>◗  Terrica aggregation, Texas-15,990 hectares-EOI</p>
<p>◗  Kilto, Wandoan-4042 hectares-EOI</p>
<p>Recent sales include:</p>
<p>◗  Cooraki, Surat-2128 hectares-sold $3.85 million ($1809 per hectare)</p>
<p>◗  Glen Lindon, Injune (pictured below)-2627 hectares-sold $3.4 million ($1294 per hectare)</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/2020/7/13/injune.jpg" alt=""></p>
<p>◗  Oban, Jimbour Plains-377 hectares-sold at auction $4.705 million ($12,599 per hectare)</p>
<p>In summary, the market may be approaching a tipping point where the strong increase in listings may see values stabilise following a period of strong growth, the report noted. </p>
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Darling Downs rural market approaching the tipping point: HTW rural 

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<div class="column"><span>A good autumn with most of the area receiving around 100 millimetres of rain during March and early April has instilled early confidence in a reasonable season in the Echuca and Deniliquin markets, according to the June Herron Todd White (HTW) rural report. </span></div>
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<div class="column"><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></div>
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<span>Combined with the long term forecast of good rains for the 2020 winter season, the general outlook for the rural sector is good, the report noted. </span>
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<div class="column"><span>Locally, farmers are quite confident of a good season and reasonable commodity prices despite the obvious impact of COVID-19.</span></div>
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<div class="column"><span>Agents are reporting a gradual increase in enquiry for rural property over the past month or so that will no doubt translate into a gradual improvement in sales activity.</span></div>
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<div class="column"><span>"We are aware of two sales contracted in late March that are at levels similar to pre COVID-19."</span></div>
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<div class="column"><span>A significant influence in the market has been the low interest rates and the perception that interest rates will remain at or around this level for the foreseeable future," the valuation firm said. </span></div>
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<div class="column"><span>A mixed irrigation and dryland holding to the south of Deniliquin contracted for sale in April 2020 for about $10 million, showing around $2450 per hectare excluding water. </span></div>
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<div class="column"><span>The purchasers were local farmers, indicating plenty of confidence and strength in the market place, the report notes. </span></div>
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<div class="column"><span>"At this point in time, the general outlook for rural values in the area is for values to steady or see a slight rise," the valuation firm said. </span></div>
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<div class="column"><span>A Carag Carag farm has recently been sold for $335,000.</span></div>
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<div class="column"><span>The property at 662 Blamey Road (pictured below) features four bedroom homestead, colorbond shed, internal fencing and native garden. 'Currently the farm is used for grazing stock.</span></div>
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<div class="column"><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/carag%20carag.jpg" alt=""></span></div>
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<div class="column"><span>A current listing is Yallum Vale, a 422ha Dairy farm in Echuca priced at $3.8 million.</span></div>
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<div class="column"><span>The 1151 McKenzie Road property (pictured below) includes two homes on separate titles, 50-stand rotary dairy and machinery shed. </span></div>
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<span>It is located just 10 minutes south east of Echuca. </span>
<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/echuca%201.jpg" alt=""></p>
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Echuca and Deniliquin rural markets remains steady: HTW rural

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<p>An increase in interest has been driving values upward in NSW’s north west and the New England region, according to the latest rural report from valuation firm Herron Todd White.</p>
<p>The regions long-term drought conditions have seemingly not reduced the appetite for prospective buyers.</p>
<p>The recent sale of Pandora, 14 kilometres south of Walcha, shows the demand from neighbours looking to expand – One of the biggest sale drivers in the region.   </p>
<p>The property recently sold at auction for $4.65 million.</p>
<p>This represented a value of $9699 per hectare ($3927 per acre), which was well above the local average.</p>
<p>Since July 2019 there have been just under 20 sales of properties in excess of 200 hectares throughout the Walcha, Uralla, Armidale and Uralla shires, with some additional sales yet to be settled.</p>
<p>The HTW report found that, whilst the number of overall sales is lower compared to the previous financial year, the median price per hectare continues to rise.</p>
<p>“We feel this is a combination of the increased demand from local landholders and neighbours expanding and the lack of listings leading to increased competition,” the firm concluded.</p>
<p>“It is too early to predict what impact [COVID-19] will have on the rural market and our team will continue to monitor the rural market and report any relevant observations on the rural sector and market over the next six to 12 months.”</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><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><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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