China agreement to drive up rural property prices
The announcement of the China-Australia Free Trade Agreement (FTA) has the potential to immediately inflate farm values, according to a national real estate group.
Andrew Tout, co-principal of Raine & Horne Rural Sydney, said the FTA has the potential to inject $18 billion into the Australian economy over the next 10 years and will drive up land prices.
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
"The FTA will dramatically increase the viability of those farms producing agricultural commodities through increased competition and reduced price volatility," said Mr Tout.
Long term, he says, the FTA will also help reduce the number of distressed asset sales in the rural sector and will indirectly help inflate the values of properties used for a wide range of industries – including beef, dairy, wool and feed grain.
“Australia already produces 57 per cent of China’s imported beef, so the reduction in tariffs currently ranging from 12 per cent to 25 per cent is great news for domestic farmers, and for the value of their properties,” he said.
Raine & Horne said the FTA could immediately see property values rise by 15 per cent.
