Rural Sales

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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, <a href="https://www.realestate.com.au/property-other-sa-naracoorte-7923518" target="_blank">661 Range Road Naracoorte</a> 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.
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Viticulture, horticulture property in demand throughout Victoria: HTW

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The southern Queensland rural property market is on a run according to Herron Todd White, who say it is obvious that the increase in the market to date has not been consistent across all the regions but there is a broad level of momentum building.
In a recent report HTW said there are sectors and industries out there that always lead and this time around it would appear to be no different with cattle again appearing to be the catalyst for demand.
"Hindsight is a wonderful thing but given that there has now been a shortage of cattle in Australia for the past 12 months or so, the likelihood of an upward market adjustment of this nature occurring was always on the cards," HTW said.
"The issue is however how far will it go?
"The golden triangle of Taroom, Roma and Wandoan has set the pace.
"It is now evident that over the course of the past 12 to 18 months, the market within this sector has risen by 25 percent to 35 percent.
"In some instances where adjoining owners are involved, this increase is even higher.
"Recent settled sales include Bracco, north-west of Roma selling in September 2016 for $2,439 per hectare ($1,000 per acre in old terms); Myrnong in a similar location selling at auction for $2,523 per hectare (just over $1,000 per acre) and Nardu north- east of Roma selling for $2,151 per hectare ($870 per acre).
"This evidence would suggest that where previously it was accepted that an adjoining owner had the ability and was prepared to pay a premium, that premium was in the order of 10 percent or so; one fully justifiable.
"However that accepted level is no longer evident.
"We would suggest that such premiums could be as high as 20 percent.
"Whether they are justi able or not is another question and one that can only be answered by the buyer.
We also note a run on irrigation country on the inner downs. Sales advised as occurring, but yet to be fully confirmed include Warra Warra at Brigalow, Bandawing south of Bowenville and Campbells at Tummaville. Initial unconfirmed evidence would suggest that there is some market movement occurring in this sector as well, but until they settle, we cannot confirm to what extent.
"It is also common knowledge that Clover Downs at Cunnamulla has also gone for circa $27 million. The corporate owned holding of 125,295 hectares is a trophy holding that was acquired by Hassad Australia in July 2010 for $18.576 million. If this sale proceeds, it will re ect an increase in the order of 45% over seven years.
"These are just some of the examples of recent transactions. The big takeaway from all this is that the evidence suggests that the upward market adjustment is not just limited to one sector. Broadly we are seeing a uniform adjustment in the market, something that has not been seen for a long time."
A rural property 30 Km east of Roma, named Tipperary is currently <a href="https://www.realestate.com.au/property-livestock-qld-roma-7920818" target="_blank">on the market</a>.
The 390 acre property haas three freehold titles and 3 x 6 bedroom accommodation units.
30 km <a href="https://www.realestate.com.au/property-livestock-qld-roma-7685807" target="_blank">west of Roma</a>, Alvalea has 92 acres freehold and plenty of shedding.
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Southern Queensland rural property market going strong: HTW

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Recent rural property sales in South Australia have shown a 20 percent to 30 percent land value increases in the past 12 months in areas around Robe, Penola and Naracoorte according to Herron Todd White.
HTW said the rural market in south-east regional Australia and more particularly western Victoria and south-east South Australia continues to outperform 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," HTW said.
"The story is similar across the border in South Australia with recent sales displaying 20% to 30% increases in land values in the past 12 months in some areas, especially around Robe, Penola and Naracoorte.
"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.
"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.
"Outside of the more traditional cropping and grazing sectors, the increase in interest in viticulture and horticulture assets is continuing with local growers looking to expand and corporate buyers seeking investments with higher returns than traditional cropping and grazing assets.
"Irrigation water and areas available for future development continue to play an important part in the investment criteria for most buyers."
The property at <a href="https://www.realestate.com.au/property-mixed+farming-sa-western+flat-7914990" target="_blank">659 Cadell Rd Western Flat</a>, Darringa, South Australia, features an improved grazing property with 2 centre pivots between Naracoorte and Bordertown. it features 2837 acres of well fenced, well pastured and well watered land.
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Land value increases in South Australia's rural pockets: HTW

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Dryland rural properties around Echuca are set to consolidate recent gains with levels in excess of $2,500 per hectare according to Herron Todd White's rural report for June.
HTW said after a fantastic break for the rural sector, the dryland areas such gains are not uncommon in the Riverina, while grazing properties have also been relatively buoyant.
"The market for dairy properties however has been relatively quiet," he said.
"There is some uncertainty surrounding the industry with broader international market trends and agents reporting relatively limited activity."
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Echuca grazing properties relatively buoyant: HTW  

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A lack of larger scale grazing property listings hindered sales in the first part of 2017 in the Northern Tablelands and North West Slopes and Plains region of New South Wales according to Herron Todd White.
HTW said the region felt  strong corporate activity and sales throughout 2016 and now they are seeing more spending on on farm investment by farming and grazing operations, in particular pasture, fertiliser and water development, to take advantage of the continued strong commodity prices. 
While there are reports that cattle prices are at their peak, continued demand for breeders and weaners has kept prices at record highs," HTW said.
"Higher rainfall areas in the northern tablelands have experienced an above average season with surplus feed available which is also adding to the increase demand for cows and weaners.
"Overall the market continues to attract demand from locals (looking to expand) and corporates, however the lack of available properties has resulted in a decrease in sales.
"It’s likely that listings and sales will decrease over the coming months as winter approaches.
"Vendors are less likely to list their properties as they are generally less presentable at this time of year."
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Slower rural sales across NSW Northern Tablelands: HTW

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Vineyard sales in Victoria's Mildura region are expected to strengthen on the back of farm gate prices for grapes and continued demand for local citrus fruits overseas according to Herron Todd White.
In the May report HTW noted the pending sale of a Riverland property in  South Australia will show over $20,000 per hectare (excluding water licences) for a high standard vineyard, reflecting an increase of around 50 percent over the past two years.
"The wine grape harvest has wound up for the year, with most growers feeling a greater sense of optimism than they have for many years," HTW said.
"Growers are reporting that farm gate prices for red varieties were generally around $400 per tonne and for Chardonnay around $300 per tonne.
"Larger growers can make a profit at these levels and we expect to see vineyard sales strengthen.
The citrus harvesting season will commence in the first week of May, with reports of continuing strong demand from the key export markets of China, Japan and USA. An average size crop is expected.
"There is currently a two year wait for citrus trees, with nurseries unable to keep up with demand.
"The recent sale of a citrus property at Ellerslie, just to the north of Mildura, showed levels of around $30,000 per hectare (excluding water licences) and exceeded most people’s expectations.
"The buyer was however motivated by the higher returns currently being generated and aware of the long lead time to source and establish new trees.
"Good rains over the past week have resulted in the best autumn break for many years.
"With wheat prices continuing to languish, yields will be the key again this year and the early break provides an opportunity for farmers to at least start the season with confidence. A large scale farming property, Petro Station, which has approximately 9,000 hectares of cleared land and is located approximately 45 kilometres north of Mildura is currently being advertised for sale and will be a good litmus test of the market. 
"The recent sale of a relatively small Western Division grazing property, Mazar Station, located 130 kilometres south of Broken Hill, highlights the strong demand from existing landholders in the region for additional country.
"The agent reported over 20 inspections and the sale price of just under $70 per hectare will equate to around $340 per DSE for a property with only modest building improvements and a relatively isolated location.
"Other sales reported include the Eulo/Kinross aggregation between Pooncarie and Menindee apparently at strong levels, whilst a report of the sale of Gundalundy Station in the Ivanhoe/Mossgiel area will show unprecedented levels for this area when the sale settles for open bluebush and grass plains country."
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