Southern Queensland

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<p><span>It’s been a pretty ordinary August in the south-east of the state with continued dry conditions, fires and the annual Ekka winter westerly winds turning up on cue, according to the latest rural report from Herron Todd White.</span></p>
<p><span> The valuation firm noted that dry seasonal conditions are firmly in place on both the inner and southern Downs farming regions. </span></p>
<p><span>Winter cropping within the normally secure </span>farming areas is very sparse.</p>
<p>"The concern now is looking ahead for this year’s summer cropping season with poor moisture profiles and limited water in storage for either planting or pre-watering."</p>
<p>For the Felton area, some 167 mm (6.7 inches) has been recorded for the year to date, about half that recorded in comparison to the same period last year.</p>
<p>For the 2017 year the overall total was still about 70% off the long term average. Overall market confidence in this area is still positive.</p>
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<p><span>In western Queensland, the season isn’t any better especially west of Morven. For example, Cheepie has received 65 mm (2.6 inches) for the year to date and m</span>any other farmers are now entering their sixth year of drought and have been running their businesses either on a retained skeleton breeder herd or have opted to drove cattle or seek alternative agistment.</p>
<p>The HTW valuers stated "the market in these areas has not seen the same value growth of country further east."</p>
<p>It indicated there have been some firming value trends particularly holdings that demonstrate a diversity of country of say Downs, alluvial frontage or Mulga.</p>
<p>"It’s also one area of the market that we have seen external influence impacting on values with the competition by carbon abatement brokers and proponents.</p>
<p>"One could also assume many of the landholders who have decided to register a carbon abatement project have done so under the pressures of seeking alternative income streams due to the drought.</p>
<p>"The significant capital investment in exclusion fencing has no doubt been viewed positively but the general feeling is that once the season breaks, those who have the ability to control wild dogs and vermin will be able to capitalise on improved productivity."</p>
<p>With the strengthening in the wool markets it’s likely to create opportunities for graziers wanting to diversify back into sheep or increase market demands from potentially existing southern producers seeking further country.</p>
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<p><span>Generally, every Shire west of the Dividing Range in the southern part of the state is drought declared with the exception of the Western Downs Shire. Between Wandoan and Taroom, between 350 mm to 490 mm have been recorded for the current year and broadly the country is reasonably pastured. </span></p>
<p><span>"This sector of the market has historically been </span>very strongly competed for by local producers, particularly those who have benefited from additional income streams created by the coal seam gas industry. With the current seasonal conditions, we are now seeing out of district buyers looking at buying country in the area as demonstrated by the sale of Loch Craig," stated Steven Cameron a local expert.</p>
<p>The property sold at auction in August for $3,446 per hectare ($1,394 per acre) with reports the sale result may have been influenced positively given the property was well grassed and the successful bidder had immediate access for 600 head. The auction had nine registered bidders and was sold under the hammer to a northern New South Wales angus stud producer.</p>
<p>A Calvert 100 acre mixed farming property was sold for $800,000 in July.</p>
<p>The property at <a href="https://www.realestate.com.au/sold/property-mixed+farming-qld-calvert-7952854" target="_blank">63-129 Bexleigh Lane, Calvert</a> (pictured above), features 100 acres with 25 acres of irrigated cultivation, diesel pump, two billabongs with permanent water and 6 horse paddocks plus day yards.</p>
<p>It comes with a three bedroom house and two bay shed. </p>
<p><span>This drought proof, versatile and productive property is located in the Calvert area on the outskirts of Rosewood and 20 minutes to Ipswich.</span></p>
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j.ballantyne1990-6AQqhLzZaK

Southern Queensland drought hurting values after six years: HTW rural

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<p>The southern Queensland rural property market is on a run, according to a recent report by Herron Todd White.</p>
<p>HTW said 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.</p>
<p>"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," he said.</p>
<p>"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. The issue is however how far will it go?</p>
<p>"The golden triangle of Taroom, Roma and Wandoan has set the pace.</p>
<p>"It is now evident that over the course of the past 12 to 18 months, the market within this sector has risen by 25% to 35%.</p>
<p>"In some instances where adjoining owners are involved, this increase is even higher.</p>
<p>"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).</p>
<p>"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% or so; one fully justifiable. However that accepted level is no longer evident.</p>
<p>"We would suggest that such premiums could be as high as 20%. Whether they are justi able or not is another question and one that can only be answered by the buyer.</p>
<p>"We also note a run on irrigation country on the inner downs. Sales advised as occurring, but yet to be fully con rmed include Warra Warra at Brigalow, Bandawing south of Bowenville and Campbells at Tummaville.</p>
<p>"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.</p>
<p>"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 reflect an increase in the order of 45% over seven years.</p>
<p>"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."</p>
<p>A 5,911 Ha property in Roma, named Araby, is <a href="https://www.propertyobserver.com.au/https://www.domainrural.com.au/listings/details/2013651625" target="_blank">on the market for $2,336,960</a>.</p>
<p>It is situated 96 kms south west of Roma and has 11kms of gravel road.</p>
<p>The property is fenced into 9 paddocks with 75% of fencing renewed in the last 6 years.</p>
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jonathanchancellor-7SQnKwU6yx

Southern Queensland rural property market on a run: HTW

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<p>Poor rainfall in far western Queensland is an issue for many graziers with many predicting if decent falls are not received in May, then it is possible many may need to reduce stock numbers by selling or alternatively looking for off-farm agistment according to Herron Todd White.</p>
<p>In HTW's latest rural report, the analyst firm state producers in western Queensland have not been able to catch a break this year post that exceptional 2016 wet winter season.</p>
<p>HTW said the expectation of receiving some rainfall on the back of cyclone Debbie for landholders west of Roma has ended up being a non-event.</p>
<p>"This has been disappointing given the falls of between 50 and 140 millimetres recorded between Roma and the Great Dividing Range," HTW said. </p>
<p>"Very little follow up summer rainfall was received and any benefit of the winter season was short lived with the prolonged hot summer days burning off the herbage. The reality now is that if decent falls are not received in May, then it’s likely graziers may need to reduce stock numbers by selling or alternatively looking for off-farm agistment.</p>
<p>"Many in cattle jobs are predicting yard numbers will increase in May which may result in a short term softening in the return per head.</p>
<p>The Bureau of Metrology’s climate outlook statement issued on 30 March 2017 largely indicates that the chance of above median rainfall for April to June 2017 for Western Queensland is only 30 percent to 35 percent.</p>
<p>With the season not necessarily showing too many positives, it is considered that the market for western Queensland has not recovered to the same extent as that of country further east. We are seeing the same holdings now marketed for extended periods.</p>
<p>"Some larger holdings such as Noorama Station, a 104,937 hectare holding 110 kilometres south-east of Cunnamulla in the salad bowl region has only just been put to the market under an offers to purchase campaign by Elders.</p>
<p>"Properties such as this will provide a good gauge of the corporate appetite for larger scale grazing country which to date has been mostly scrub type country.</p>
<p>"Any evidence that we are seeing stronger values are generally for better quality country or very well developed holdings. Marginal type country is still finding it difficult to achieve interest to get over the line and achieve a sale.</p>
<p>"The comparison to country further to the east has broadly reflected an increase in the median value of between 10 percent and 30 percent over the past 12 to 18 months."</p>
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