Rural Property

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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.
There are still some rural sales occurring, and there does not appear to be any initial signs of any reduction in value.
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.
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.
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.
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.
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.
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.
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j.ballantyne1990-6AQqhLzZaK

Sales suggest values remain at pre-coronavirus levels in Mildura: HTW

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Skyfall, a hobby farm set on over 100ha in the O'Connell region of NSW has been sold for $900,000.
It was sold by James Walton and Greg Ryan of First National Real Estate - Bowyer &amp; Livermore. 
Positioned in its own private valley, Skyfall at <a href="https://www.realestate.com.au/sold/property-livestock-nsw-o%27connell-700068778" target="_blank">333 Bosworth Falls Road </a>features unsurpassed views across the district. 
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It comes with mixture of pastures, three paddocks, apple cider trees dam and seasonal creek.
The incomplete homestead comprises three bedrooms, two bathrooms and kitchen. 
The property is situated just 26km to Bathurst, 34km to Oberon and 190km to Sydney CBD.
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$900,000 sale on O'Connell hobby farm Skyfall

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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. 
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. 
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.
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.
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. 
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. 
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.
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. 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. 
The growth in recent years of direct purchase agreements between supermarkets and some larger growers has provided these growers with some greater certainty in the disposal of fruit onto the domestic scene.
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"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. 
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.
 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. 
However, the industry is hopeful that there is sufficient demand from other countries to absorb our supply albeit at a likely reduced price.
"With a change in market direction it also brings the concern of foreign agents reneging on orders or payments," the valuation firm said. 
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.
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. 
However, the sector 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.
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.
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A current listing is a 8 hectare vineyard in Merbein priced at $410,000 - $440,000.
The property at Block 97 Sixth Street (pictured above) features underline sprinkler irrigation and electric motor with fertigation. 
It has been planted to 4.2 hectare Sunmuscat, 2.4 hectare Sultana and 0.8 hectare Sugra. 
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A 1,082 hectare cropping property in Meringue was sold for $965,675 in March. 
The 584 Ruchel Road property (pictured above) include a 1950s homestead, separate bungalow, elevated red loam soils and open front machinery shed.
The property has a history of growing wheat, peas, lentils and livestock.  
 
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Mildura rural market faced with changing global macroeconomic conditions: HTW rural 

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The British baron Robin Tedder and his wife Rita have put their Hunter Valley vineyard estate, Glenguin, up for sale.
It comes after 27 years of ownership.
Set on 28 hectares, the Broke estate at 997 Milbrodale Road has produced handcrafted trophy-winning wines.
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<div class="_3MT_w " data-experiment-target="paywallPrompt" data-testid="PaywallPrompt">Robin and Rita Tedder retain a Clifton Gardens abode on Sydney’s Lower North Shore.</div>
Robin has a background in finance and investment and is chairman of Vintage Capital.
He is a director and co-founder of Blackwall Property Group, a subsidiary of WOTSO, one of Australia’s largest operators of co-working spaces.
He qualified as Australia’s 7th Master of Wine in 1997.
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The estate has an architecture designed, master built homestead, with three adjoining pavilions with two towers.
There is a pool and an all weather tennis court.
The vineyard has been rated at 5 red stars in James Hallidays’ Wine Companion.
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jrobinson-rf4aSBido9

British baron Robin Tedder lists Hunter Valley vineyard estate, Glenguin

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The 538 acre Woolangubra near Yass sold under the hammer last week for $375,000 over reserve.
Set to hold part of the Bango wind farm, the hotly contested green energy acreage sold for $1.6 million.
The winning bidders, Kerry and Roger Rayner also own the adjacent land and plan to continue expanding their sheep operation to grow their existing Merino and Dorset sheep numbers.
The online auction was held at the New South Wales head office studio and called by Ray White New South Wales CEO and auctioneer Jason Andrew.
Drawing 11 registered bidders, the auction capped off a campaign that Ray White Yass | Canberra selling agent Dominic Johns said attracted strong interest from start to finish.
“We had a good level of interest the whole way through the campaign especially with it being such a unique property, there were three or four different private inspections each week which was excellent,” Mr Johns said.
Ray White Yass Canberra agent George Southwell believed it could be the first wind farm that has ever been sold publicly in Australia.
“I haven’t been able to find another wind farm sale like it in Australia so I am certain it could potentially be the first,” Mr Southwell said.
 
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540 acre Woolangubra sold in fully online auction

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A blue-ribbon property located 20 kilometres north-east of Parkes in Central West NSW has sold at auction for $4,237,000.
It was sold by Geoff Rice, of Raine &amp; Horne Parkes, for a district record.  
The 1406-acre property known as Mossburn &amp; Pinegrove went under the hammer earlier this month.
It was as secured by Peak Hill couple Garry and Donna Kopp.
Mossburn &amp; Pine Grove has been in the Simpson family for three generations. 
The Kopps breed Merino sheep on their property at Peak Hill, which is in the Parkes Shire, and have secured Mossburn &amp; Pinegrove for their son. 
“The auction attracted four registered bidders including the Kopps, who competed eagerly for the property located in Parkes’s tightly held rural dress circle region near the Parkes radio telescope observatory,” Rice said. 
It was sold by the long-time owners Ian and Diane Simpson.
"It demonstrates that despite one of the worst droughts on record, quality in this region still sells.”
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Consisting of 1406 acres of alluvial creek country, the property, which is well fenced and well-watered has regularly produced fat lambs and crops. 
Rice noted water is a distinctive feature of the property boasting two springs and a stock and domestic bore serving all 21 paddocks through a trough system. 
“With highly improved pastures consisting of Lucerne and Clover, the property currently carries 900 1st X ewes alongside its cropping program.”
Other features of the property include two homesteads with up to five bedrooms.
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The main homestead has a fully renovated kitchen and bathroom and comes with an immaculate garden setting.
The property has a backup 8.3 kW solar system. 
Raine &amp; Horne’s digital technology platform Amplify attracted more enquiries for Mossburn &amp; Pinegrove. 
Amplify uses artificial intelligence (A.I.) and social media to engage with active and passive buyers. 
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Parkes rural property sells for $4.2 million district record

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The rural property market in central western Queensland has strengthened significantly in 2019 as drought affected producers from the Northern Territory, central Queensland and New South Wales have competed to secure the limited numbers of well grassed properties for sale, according to the latest Herron Todd White (HTW) report. 
The report suggests sales activity has generally been confined to areas from Longreach to west of Winton, with values increasing by up to 25% on levels seen from 2010 to 2018.
The Blackall and Barcaldine area had its run in 2018, but dry conditions in this region have seen the market focused further west, where good rainfall totals have seen a large number of well grassed properties hit the market.
Sales data has seen nearly 40 properties sell in 2019 to date, up from around 20 in 2018.
"While the majority of purchasers have been chasing grass, in some cases they are bringing forward expansion plans due to current drought pressures," the valuation firm said. 
"Most are looking at a longer-term investment, not a short-term quick fix."
Sheep producers, principally from New South Wales, have also been active in the region for the first time in nearly 30 years.
"The increase in values has been due to the strong demand and limited properties for sale, but is also riding on the back of significant land value increases in the eastern half of Queensland, coupled with low interest rates," the valuation firm added. 
Some producers are also securing land rather than pay very high agistment rates which is extremely limited, preferring to pay off their own property rather than someone else’s.
Demand is still evident, at this late stage of the year, with two properties in the Winton district recently going under contract and market attention now focused on the smaller scale, reportedly well grassed Aramac property, Caber Feidh (pictured below), which sold in early November at auction. 
<img src="https://www.urban.com.au/images/2019/11/13/Caber%20Feidh%202%20.jpeg" alt="">
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Central Western Queensland rural property market strengthened significantly: HTW rural

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The depth of the horticultural market in far north Queensland will be tested with a large mixed avocado and sugar cane property being offered to the market, according to the latest Herron Todd White (HTW) rural report. 
The report notes the property, located at Arriga (pictured below), comprises 1,576 hectares developed with 31,483 young Hass variety avocado trees and a sugar operation producing around 120,000 tonnes per annum.
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The irrigation water allocation of 8,732 megalitres is one of the larger allocations in the region.
Combined with extensive structural improvements and supporting infrastructure, it is expected to generate interest from corporate buyers and local larger family operators.
The market for well-watered Atherton Tableland grass country continues to be strong with numerous recent sales to western graziers and others seeking drought proof fattening country.
The latest is a 120-hectare piece (pictured below) at Moregatta on the southern Tablelands that sold under the hammer for $1.24 million at auction with strong interest.
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The sale analysed to $7,802 per hectare ex-structures.
"What makes it a bullish sale is that it was a deceased estate / administrator’s sale in run down condition requiring repairs, however this is consistent with the recent bullish trend," HTW said. 
The report notes reliable high rainfall is the main driver in this market with rainfall throughout the Atherton Tablelands ranging between 1,500 millimetres and 2,500 millimetres per annum.
Recent wet seasons in north Queensland have been above average and this is consistent with Bureau of Meteorology rainfall statistics borne out in the below illustration.
"If rainfall trends continue, it is likely that Atherton Tableland grass country will be a hot spot for west graziers for many years to come," the valuation firm said. 
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Reliable high rainfall - the main driver in North Queensland rural property market: HTW rural

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Recent rain in the Charters Towers area has lifted eyes towards the sky with some good moisture in the sky with clouds building in the afternoon, according to the latest Herron Todd White (HTW) rural report. 
Recent events have developed with isolated thunderstorms delivering up to 24 millimetres in the odd spot and barely spit in others.
"The old saying rings in the ears that where the first break of the season is, that is where it will fall for the oncoming wet season," the valuation firm said. 
"These are early falls, however they have had immediate effect on the minds of land holders.
"Last wet season, the Charters Towers area (more so to the north) had regular steady rain events. A cracking season for some!" 
From an agricultural perspective, this district has lots to offer, the HTW report noted. 
Since the area was thrown open to cattle grazing in the 1860s, agriculture has endured the tribulations of drought, disease, flood, commodity market cycles and property market cycles.
Property market cycles have endured cattle slumps, a millennial boom, a live export ban and now strong demand exists with limited country for sale.
"At four of the last five auctions in this district, neighbours were successful in expanding their holdings.
"The auctions of Somerset, Maitland Downs, Reedybrook and Myrrlumbing certainly provided varying gauges of market depth from under bidders," the valuation firm said. 
There have been a few privately negotiated transactions to neighbouring land holders.
This degree of demand is somewhat different to the post live export ban period where there was limited market interest in northern cattle breeding assets.
Auction results have been:
◗ Maitland Downs (pictured below) - $9.85 million ($712/ha, $288/ acre) walk in walk out;
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◗ Somerset (pictured below) -$4.3million ($296/ha,$120/acre) bare of livestock, plant and equipment;
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◗ Reedybrook (pictured below) - $5.67 million ($603/ha, $244/acre) walk in walk out;
<img src="https://www.urban.com.au/images/2019/11/13/reedybrook.jpeg" alt="">
◗ Myrrlumbing - $5.9 million ($373/ha, $150/acre) walk in walk out.
"As usual, it depends what you apportion to cattle and plant, but our bare/improved land rate range from these sales is from $296 per hectare ($120 per acre) to $538 per hectare ($217 per acre)," the valuation firm said. 
"Even though these are sales to neighbours, one cannot forget the depth of underbidding to take the buyer to the auctioneer’s drop of the gavel."
Given the recent rain, last year’s seasonal conditions, cattle demand, interest rates and slim pickings for buyers, only time will tell whether the broader market starts to push value rates higher.
Certainly, the property market conditions are in the vendor’s favour at present.
With both neighbours and vendors confident in their property investments and the future, it is very difficult for prospective buyers to invest at present.
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Charters Towers property market conditions in the vendor's favour: HTW rural

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The current level of large scale agricultural land on the market continues to test the market in Western NSW, according to the recent Herron Todd White (HTW) rural report. 
The valuation firm says the likes of the Midkin Aggregation is coming on the market and now purportedly selling for $300 million, Harvard University’s properties in western New South Wales are worth circa $200 million, the full RIFA Portfolio is now on the market along with some smaller corporate level holdings in the Albury area and central New South Wales.
"You would think that the dry climatic conditions being experienced across the state would temper any expansionary activity however this is not the case," the valuation firm said. 
"Apart from these larger scale corporate level properties, there are a number of smaller properties changing hands at value levels that show the market continuing to increase."
Recent examples of this are is <a href="https://www.realestate.com.au/sold/property-mixed+farming-nsw-ivanhoe-7987330" target="_blank" style="font-size: 12.16px;">Eurella Station, Ivanhoe</a> (pictured below).
This is a 25,600 hectare parcel located eight kilometres north of Ivanhoe which was sold by private treaty by Landmark Harcourts Deniliquin for $4.4 million.
This equates to $172 per hectare overall and approximately $550 per DSE.
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This property was improved with a five bedroom homestead, machinery shed, four stand shearing shed and good sheep and cattle yards.
This sale is in close proximity to Rosewood Station which sold in November 2018 for $165 per hectare.
"We are also aware of an offer and acceptance on a property in the same general area that was purchased approximately two years ago and now is under offer at a value level that will show a 27% increase over that period. While this appears high, it is in line with most areas in New South Wales," the valuation firm said. 
The report notes the Ivanhoe area is proving to be an active location in terms of property being offered for sale.
The holding <a href="https://www.realestate.com.au/property-acreage+semi-rural-nsw-ivanhoe-132035774" target="_blank">Cross Roads Station</a> (pictured below) is being marketed by a new entrant to the rural sales scene, Border Real Estate.
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This is a 27,000 hectare grazing property located to the north-east of Ivanhoe which has attracted solid levels of interest with approximately 35 enquiries.
This property has a current capacity of approximately 8,000 DSE.
The recent sales indicate that this property should achieve greater than $4 million, the report noted. 
"It will be interesting to see the result once the expressions of interest period closes," the valuation firm commented. 
Another property further to the north-east of Cross Roads is<a href="https://www.realestate.com.au/property-cropping-nsw-ivanhoe-700057638" target="_blank"> Koonaburra</a> (pictured below) which is being offered to the market via a Facebook campaign and also through Elders Real Estate.
This property is approximately 40,000 hectares and has an asking price of $55 per acre or $136 per hectare.
<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/2019/11/13/ivanhoe%203.jpg" alt="">
This property has areas of Mallee and thicker timber.
"After taking into consideration these areas, the asking price would be considered a strong sale if achieved," the valuation firm said.
These two properties are located in an area which has received some level of rainfall and as such there are areas of feed and grass available.
The report suggests this has been one of the major contributing factors to the level of interest is being shown.
"Discussing the situation with one of our clients, they pointed out that their budgets indicated that the cost to purchase grain and hay to feed their drought stricken stock was approximately four times that of the cost of going out and purchasing a property that would accommodate the same level of stock.
"This is a function of the extremely low interest rates currently being experienced. This option is really only available for those that have a very strong balance sheet but is indicative of what can be achieved in the current low interest rate environment." 
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