Spring sellers in the box seat

Spring sellers in the box seat


Agribusiness
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High commodity prices coupled with a lower number of listings have rural real estate agents predicting a strong spring property season.

High commodity prices coupled with a lower number of listings have rural real estate agents predicting a strong spring property season.

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STRONG SPRING: Sellers will be in the box seat, this spring, according to agents, including Charles Stewart, Warrnambool’s Nick Adamson.

STRONG SPRING: Sellers will be in the box seat, this spring, according to agents, including Charles Stewart, Warrnambool’s Nick Adamson.

Charles Stewart, Warrnambool’s Nick Adamson said while the far south-west was still a little wet, he predicted properties to be sold would “present in a very strong fashion”. 

He was one of several agents who said demand was outstripping supply across Victoria.

“The demand is still strong for anything to do with red meat, wool and cropping,” Mr Adamson said.

“There’s more than the normal range of Western District and interstate operations looking to expand their existing holdings.”

Mr Adamson said the only sector that remained flat was dairying, but even that was not as bad as people might have heard.

Colliers Rural & Agribusiness head Shane McIntyre said rarely had there been so many positives in the agricultural sector.

“Historically low interest rates, unprecedented demand for wool and red meat and now functioning Free Trade Agreements (FTA’s) with our major trading partners, and now we have a season we can bank on in the southern half of Australia,” Mr McIntyre said. “Demand continues from Europe, US and Asia with fund managers and private investors combining with a strengthening local market to create a new platform of values for most categories of rural property.”

Demand continues from Europe, US and Asia with fund managers and private investors combining with a strengthening local market to create a new platform of values for most categories of rural property. - Shayne McIntyre, Colliers International

“The coming spring is likely to be undersupplied due to improved returns and outlook.” Primary producers had cash and willing lenders.

CBRE Agribusiness regional director Danny Thomas said a number of very good properties were being presented to the market.

“CBRE are observing unprecedented demand for large scale assets across all geographies and commodities, especially the western district of Victoria,” Mr Thomas said.

“All buyer segments are active, including local farmers, corporate farming families, corporate and institutional groups and foreign investors.”

Locals, driving the market, were resetting accepted district land values. “Liquidity in lending, strong balance sheets and robust FMD accounts and a positive market outlook are driving generational purchasers to expand.”

Mr Thomas agreed while dairy remained challenging, it appeared to be emerging from the bottom of its cycle.

Ray White Rural agent Tim Gladman said a rising, bouyant marketplace meant it was shaping up to be a bumper spring.

“Buyers’ strong appetite for rural property currently shows no signs of abating, with many unsatisfied buyers scoping the marketplace for opportunities and who are eagerly awaiting to see what new properties come on to the market,” Mr Gladman said.

So far, 2017 had been very prosperous and fluid, evidenced by a multitude of rural property transactions occurring.

Ray White Rural had sold a number of larger holdings over the past few months, including the 1215 hectare 'Leighburn', Western Victoria.

The agent had also sold four individual properties located in north central Victoria / southern Mallee, totalling some 10,115ha.

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