Almost unprecedented demand and a shortage of property listings has seen property prices around Victoria rise.
Hamilton-based Charles Stewart Real Estate director Andrew Dufty said high commodity prices were feeding demand, which is pushing property prices in the region higher.
Mr Dufty said prices had risen 15 to 20 per cent on last year – but on thin volumes.
Low supplies of traditional grazing country meant buyers were prepared to look at former bluegum properties for reversion to livestock properties.
He said one bluegum property in the Gringegalgona district had attracted a lot of interest. There was a lot more knowledge around the methodology of reversion to ensure success.
“I am seeing the next generation of farmers coming through,” Mr Dufty said.
“Because there is a bit more cash around and farming businesses were performing better, it’s enticing the next generation back into farming.”
Landmark Harcourts general manager Mark Brooke said there was an excess of demand over supply in all sectors, Australia-wide.
In Victoria, with commodity prices as they were, significant prices were being achieved on almost every sale whether dryland and irrigated cropping or grazing – sheep and cattle, he said.
Property owners were taking advantage of the good returns and increasing capital value by selling, or retaining the property and reaping the returns from their business enterprise.
Mr Brooke said that meant that unless there was a reason to sell, or seen as an opportunity to sell, many owners were holding on.
Elders Real Estate manager Geelong and district Ken Drysdale said the sales scene had never been stronger of more buoyant.
Mr Drysdale said a recent sale was the 96-hectare grazing and cropping property Alfa Downs, Birregurra, sold by Elders under the hammer for nearly $1.9 million.
He said rural properties were being sold to “cash Australian money”.
There was no shortage of listings in his region and there were a number of notable sales coming up for sale.
F P Nevins and Co real estate salesperson James Nevins, Inglewood, said there was strong inquiry for land geared for fodder and cropping.
“As soon as land comes on the market the first interest is from neighbours, but outside interests were also providing good inquiry,” he said.
Despite the dry conditions in East Gippsland, demand for property was “surprisingly strong”, Sharp Fullgrabe agent Graeme Fullgrabe said.
The demand was across the range from 40ha to 400ha. “The smaller the package the higher the price per unit,” Mr Fullgrabe said.