Records continued to tumble for rural property in both South Australia, Victoria and into New South Wales, with farmers and investors seeing agriculture as a safe bet. CBRE Agribusiness regional director Danny Thomas said prices for most classes of rural land surpassed their pre-GFC peak, in the first half of 2016. The second half of the year saw a further advance, on those historic highs.
“Western Victoria in particular is a hot-spot with both mixed farms and grain properties achieving very high prices across all scale ranges (from sub 200 hectare holdings to institutional and corporate scale assets above 2,000 hectares),” Mr Thomas said. “However, the buoyant conditions are not isolated to western Victoria, with all zones achieving very strong demand, with the notable exception of dairy.”
Mr Thomas said the lifestyle market was also performing strongly, as urban purchasers, who have benefitted from strong residential prices, sought to secure a property as part of their portfolio. Colliers Head of Rural and Agribusiness Shane McIntyre said the rural market was under supplied and continues to draw widespread interest from local and international buyers.
“Many categories have experienced unprecedented rises, in particular cereal growing country and beef enterprises, but, there is no segment that has not enjoyed lifts in value,” Mr McIntyre said. “Historically low interest rates, free trade agreements and outstanding commodity prices have combined to create an environment of optimism in agriculture that will endure for at least the remainder of the decade.”