Following a summer filled with natural disasters, from flooding to fires and everything in between, things in rural Australia are beginning to recover and with this so are property values, suggests new research.
Research released by Herron Todd White showed rural areas are at the mercy of the elements with strong property prices following an increase in consumer sentiment, with poor weather dampening the mood for property sales.
Highlighting a Rabobank study, Herron Todd White noted an increasing number of properties will come to market from sellers who have grown tired of waiting for the drought to end and those who have chosen to sell for lifestyle reasons.
Herron Todd White’s national client manager – commercial, agribusiness and advisory, Tim Lane, noted it’s not all bad news for regional Australia, with steady rainfall providing optimism to the area.
Property prices in NSW’s North Coast have benefited from an increasing rainfall, with renewed confidence in local businesses.
“There have been very few sales transactions recently that have resulted in purchases of land by sugar cane farmers, but an improved sugar price and crop conditions will assist. The strong macadamia nut commodity price, however, ensures strong competition for this land,” Mr Lane said.
“My feelings and perception of the market is that we will see some further strengthening of values in the general New South Wales area.”
The report also showed central and southern-west NSW are displaying resilience in terms of depth and pricing across the areas.
Sales occurring recently include Crossroads, a 27,000-hectare property located approximately 65 kilometres north-east of Ivanhoe. This sale has purportedly transacted at $146 per hectare overall or $59 per acre.
Improvements on the property included an eight-stand woolshed with yards, basic quarters and goat yards.
The property was watered by ground tanks and had been destocked for approximately two years.
“This value level would indicate to us that the western values in the Ivanhoe area have levelled out; however, as we have stated before, all bets are off if it rains!”